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30-05-14, 17:22
http://www.businesstimes.com.sg/archive/friday/premium/singapore/rule-changes-new-system-moderating-bidding-ec-sites-20140523
Published May 23, 2014
HOUSING
Rule changes, new system 'moderating bidding for EC sites'
CDL-TID and JBE top bidders for two EC plots in Yishun
By Kalpana Rashiwala
[email protected] @KalpanaBT
THE result of the latest state tender for two adjoining Yishun plots near a golf course and reservoir reflects a moderation in executive condominium (EC) land bids.
Analysts attribute this to a mix of last December's rule tweaks for EC buyers which have clipped new EC demand, and the batched tender system aimed at making developers more conscious of the dangers of overbidding.
For the first time since the system of simultaneous tender closings for adjacent residential sites was reintroduced last year, a pair of 99-year sites in Yishun Street 51 tendered yesterday will end up in different hands.
A City Developments Ltd-TID joint venture placed the highest bid of $330.13 per square foot per plot ratio (psf ppr) for Yishun Street 51 (Parcel A).
For the next-door Parcel B, the $334.57 psf ppr top bid came from JBE Holdings - controlled by Hong Konger Patrick Lam Kong Yin, who also developed The Luxe at Handy Road.
While the six contenders for Parcel A also vied for Parcel B, two bidders - JBE and Chip Eng Seng - participated in the tender for only Parcel B. That may be due to Parcel B being located nearer to Lower Seletar Reservoir, said ERA key executive officer Eugene Lim.
Added SLP International executive director Nicholas Mak: "Parcel A is less favoured by developers because the view towards the reservoir of some of the lower floors in the future development is likely to be blocked by The Shaughnessy, Skies Miltonia and The Miltonia Residences."
Most property consultants termed the six bids for Parcel A and eight for Parcel B as a healthy participation rate.
"Developers are still hungry for land. The relatively small total quantum for the sites - about $178 million and $184 million - has enticed a spectrum of developers to place competitive bids," said CBRE Research Singapore head Desmond Sim. Jones Lang LaSalle national director Ong Teck Hui noted that despite keen interest in the two sites, the top bids show a moderation in bidding.
"Compared to the Canberra Drive EC site, which fetched $350 psf ppr in January, the subject sites are about 4-6 per cent cheaper, but are more attractive as they enjoy views of the reservoir and greenery. With 10 previously awarded EC sites in the launch pipeline generating some 6,000 units, bidders would be expected to be measured in tendering for the sites," he said.
Expecting CDL-TID and JBE to launch their respective projects around the same period, Mr Mak said they will have to "take extra caution in their pricing strategy to compete with each other".
CDL-TID's top bid for Parcel A was 2.1 per cent more than the second highest bid of $323.29 psf ppr by Sim Lian Land. For Parcel B, the top bid by JBE was 4.5 per cent higher than the second-highest bid by the Singapore unit of China's Nanshan Group.
The Longkou City, Shandong-based group is involved in a range of fields, such as finance, high-tech industries, property and education. Parcel B can generate about 520 units.
As for Parcel A, a CDL spokeswoman said it will explore a 12 to 13-storey project with about 480 units . "Given the popularity of ECs and the site's breath-taking views of Lower Seletar Reservoir waters and greenery, we expect the development to be well received. Recent EC projects in the vicinity have enjoyed healthy uptake and there is limited supply of unsold EC units in Yishun," she added.
In January, a CDL-TID joint venture clinched the Canberra Drive EC site.
ECs are a public-private housing hybrid with initial buyer eligibility and resale conditions which are completely lifted 10 years after the completion of an EC project.
Published May 23, 2014
HOUSING
Rule changes, new system 'moderating bidding for EC sites'
CDL-TID and JBE top bidders for two EC plots in Yishun
By Kalpana Rashiwala
[email protected] @KalpanaBT
THE result of the latest state tender for two adjoining Yishun plots near a golf course and reservoir reflects a moderation in executive condominium (EC) land bids.
Analysts attribute this to a mix of last December's rule tweaks for EC buyers which have clipped new EC demand, and the batched tender system aimed at making developers more conscious of the dangers of overbidding.
For the first time since the system of simultaneous tender closings for adjacent residential sites was reintroduced last year, a pair of 99-year sites in Yishun Street 51 tendered yesterday will end up in different hands.
A City Developments Ltd-TID joint venture placed the highest bid of $330.13 per square foot per plot ratio (psf ppr) for Yishun Street 51 (Parcel A).
For the next-door Parcel B, the $334.57 psf ppr top bid came from JBE Holdings - controlled by Hong Konger Patrick Lam Kong Yin, who also developed The Luxe at Handy Road.
While the six contenders for Parcel A also vied for Parcel B, two bidders - JBE and Chip Eng Seng - participated in the tender for only Parcel B. That may be due to Parcel B being located nearer to Lower Seletar Reservoir, said ERA key executive officer Eugene Lim.
Added SLP International executive director Nicholas Mak: "Parcel A is less favoured by developers because the view towards the reservoir of some of the lower floors in the future development is likely to be blocked by The Shaughnessy, Skies Miltonia and The Miltonia Residences."
Most property consultants termed the six bids for Parcel A and eight for Parcel B as a healthy participation rate.
"Developers are still hungry for land. The relatively small total quantum for the sites - about $178 million and $184 million - has enticed a spectrum of developers to place competitive bids," said CBRE Research Singapore head Desmond Sim. Jones Lang LaSalle national director Ong Teck Hui noted that despite keen interest in the two sites, the top bids show a moderation in bidding.
"Compared to the Canberra Drive EC site, which fetched $350 psf ppr in January, the subject sites are about 4-6 per cent cheaper, but are more attractive as they enjoy views of the reservoir and greenery. With 10 previously awarded EC sites in the launch pipeline generating some 6,000 units, bidders would be expected to be measured in tendering for the sites," he said.
Expecting CDL-TID and JBE to launch their respective projects around the same period, Mr Mak said they will have to "take extra caution in their pricing strategy to compete with each other".
CDL-TID's top bid for Parcel A was 2.1 per cent more than the second highest bid of $323.29 psf ppr by Sim Lian Land. For Parcel B, the top bid by JBE was 4.5 per cent higher than the second-highest bid by the Singapore unit of China's Nanshan Group.
The Longkou City, Shandong-based group is involved in a range of fields, such as finance, high-tech industries, property and education. Parcel B can generate about 520 units.
As for Parcel A, a CDL spokeswoman said it will explore a 12 to 13-storey project with about 480 units . "Given the popularity of ECs and the site's breath-taking views of Lower Seletar Reservoir waters and greenery, we expect the development to be well received. Recent EC projects in the vicinity have enjoyed healthy uptake and there is limited supply of unsold EC units in Yishun," she added.
In January, a CDL-TID joint venture clinched the Canberra Drive EC site.
ECs are a public-private housing hybrid with initial buyer eligibility and resale conditions which are completely lifted 10 years after the completion of an EC project.