View Full Version : CDL tops tender for Sengkang private condo plot with bid of $365.26 psf ppr
http://www.businesstimes.com.sg/sub/latest/story/0,4574,371226,00.html?
February 4, 2010, 5.45 pm (Singapore time)
Update: CDL tops tender for Sengkang private condo plot with bid of $365.26 psf ppr
By KALPANA RASHIWALA
A subsidiary of City Developments has placed the top bid at a state tender for a 99-year leasehold private condominium site at Sengkang West Avenue/Fernvale Link.
The top bid is $200.5 million or $365.26 per square foot of potential gross floor area. The tender drew a total 10 bids.
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1035393/1/.html
Sengkang condo land parcel sees top bid of S$200.5m
By Millet Enriquez, Channel NewsAsia | Posted: 04 February 2010 2153 hrs
SINGAPORE: Developers still appear hungry for land that can be used for condominium development.
A tender for a land parcel in Sengkang saw robust bidding, with the top offer coming in at over S$200 million.
Industry experts said it is a sign that appetite among developers to snap good sites is currently on a high.
The site at Sengkang West Avenue and Fernvale Link received bids from 10 developers.
Sunmaster Holdings submitted an offer of S$200.5 million, more than 2.5 times the minimum bid of S$70 million, for the 16,998.8 square metre site.
The price translates to S$365 per square foot (psf) for the land parcel launched by the Housing and Development Board (HDB) on a 99-year lease.
The next highest bid came from Tuas Hi-Tech Park, with a bid of S$177 million. The lowest bid of S$115.6 million was by Lippo Estates.
The HDB said it will evaluate the provisional results and the tender will be awarded in the next two weeks.
Industry observers said the top bid was very bullish. Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the breakeven cost would be about S$730 to S$760 psf.
Colliers said the top bid reflected the optimistic sentiment of developers. In 2009, three other residential sites received bids that were higher than S$200 million. - CNA/vm
Think that the site at Yio Chu Kang (by Far East) is better and it is going to launch quite soon, as they have put up the boards and all.
It seems that soon we will see SengKang's 99LH reaches 1000psf!
Maybe even within one year.
It seems that soon we will see SengKang's 99LH reaches 1000psf!
Maybe even within one year.
I think Sengkang may not need this CDL project to reach $1,000 psf within a year.
I think the going-7-year-old Compass Heights and the almost-1-year-old The Quartz can lead Sengkang there. I mean Compass Heights' $899 psf is only $101 psf from $1,000 psf. It's not that far right?
This CDL project might help Sengkang to join the OCR-$1,200psf Club, whose members include Centro Residences, Trevista, Hundred Trees, Meadows @ Pierce, Serangoon Avenue 3, Upper Thomson Road, etc.. Let's see if it can hit $1,200 psf.
Wow!
Going-7-year-old Compass Heights has a nëw hïgh of $899 psf!
Unbelievable!
Compass Heights
Address ............................. psf ............. Area ........ Price .......... Contract Date
9 Sengkang Square #11-02 ..... $899 psf ..... 667 sqft .... $600,000 ..... 9 Jan 10
No wonder CDL's Sunmaster dare to go for a breakeven of around $750 psf for the new Sengkang land parcel.
If going-7-year-old Compass Heights in District-19 Sengkang can hit nëw hïgh of $899 psf, why should CDL not able to hit high of $1,199 psf with the new Sengkang site?
http://www.businesstimes.com.sg/sub/news/story/0,4574,371262-1265399940,00.html?
Published February 5, 2010
Sengkang bids signal moderation setting in
But 10 bids suggest hunger for land intact; CDL tops with $365 psf ppr
By KALPANA RASHIWALA
THE government's move to turn on the supply tap for private residential land appears to be having an effect on developers' bids, property consultants said after the tender for a 99-year leasehold private condo plot in Sengkang closed yesterday.
The site, next to Sungei Punggol and in front of an LRT station, still drew a considerable 10 bids, suggesting that developers remain hungry for land, especially in the hot-selling mass-market segment.
The top bid by a City Developments Ltd (CDL) subsidiary - $200.5 million or $365.26 per square foot of potential gross floor area - was some 13 per cent higher than the next highest offer of about $322 psf ppr by a Far East Organization unit.
However, CDL's price was lower than the top range of bids, of up to $420 psf per plot ratio (psf ppr), that had been predicted by some consultants in late December, when the government announced that the plot had been triggered from its reserve list.
'We're probably moving to a more stable market. Developers are becoming more realistic; the government this week reiterated that there is sufficient supply from its Government Land Sales (GLS) Programme for first half 2010,' said CB Richard Ellis executive director Li Hiaw Ho.
The Urban Redevelopment Authority stressed that the number of private homes from the confirmed and reserve lists in the H1 2010 GLS Programme - 10,550 - is the highest in the programme's history.
Commenting on the outcome of yesterday's tender, Knight Frank chairman Tan Tiong Cheng said: 'Developers are still trying to secure mass-market housing land as shown by the number of bids but this time, at more sensible prices.'
Colliers International director Tay Huey Ying described the top bid as 'relatively realistic optimism on the part of developers' compared with market expectations as well as achievable selling prices for the project in about a year's time when it is likely to be launched.
Consultants estimate that based on CDL's bid, its breakeven cost could be about $650-760 psf and its target selling price around $750-830 psf. This price range is still higher than current prices in the area cited by consultants.
A CDL spokeswoman said that the plot, at the corner of Sengkang West Avenue and Fernvalue Link, is well positioned, directly in front of Layar LRT Station. If awarded the site, CDL, which is part of the Hong Leong Group, plans to build a 24 to 25-storey condo.
'This bid is in line with CDL's continued strategy to build value into, and replenish its landbank,' she added.
Assuming CDL is awarded the plot, it would mean that the Hong Leong group has clinched three out of the seven state plots (with private housing element) whose tenders have closed in the past six months.
Yesterday's tender, conducted by the Housing & Development Board, also drew bids from Frasers Centrepoint (about $322 psf ppr), Chip Eng Seng, Allgreen Properties and GuocoLand, among others.
http://www.businesstimes.com.sg/mnt/media/image/launched/2010-02-05/BT_IMAGES_KRSENGKANG5.jpg
http://www.straitstimes.com/Money/Story/STIStory_486718.html
Feb 5, 2010
CDL unit puts in highest bid for Sengkang site
By Harsha Jethnani
A UNIT of City Developments (CDL) lodged the highest bid for a Sengkang site in a hotly contested tender that attracted some of the biggest names in property development.
Sunmaster Holdings trumped its nine rival bidders with an offer of $200.5 million, or $365.26 per square foot (psf) of potential gross floor area, for the 182,986 sq ft plot.
This was 185 per cent above the reserve price of $70 million or $128 psf, said Mr Li Hiaw Ho, executive director at CB Richard Ellis Research.
The Sunmaster Holdings bid for the 99-year leasehold residential site at the corner of Sengkang West Avenue and Fernvale Link was followed by Tuas Hi-Tech Park's offer of $177 million.
Frasers Centrepoint was just $92,000 behind at $176,908,000.
Other bidders included a joint venture between Hoi Hup Realty and Sunway Developments, First Changi Development, Allgreen Properties, CEL Development and Lippo Estates, with the lowest bid at $115.6 million.
'The healthy number of bids received shows that developers remain confident of the market for mass-market homes,' said the director of research and advisory at Colliers International, Ms Tay Huey Ying.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak pointed out that although developers 'are still somewhat hungry for good development sites', most bids were reasonable.
This is possibly because of the ample supply of government land sales projects coming up in the first half of the year, he said.
The site is estimated to be able to accommodate up to 465 condominium units and has a maximum allowable gross floor area of 50,996 sq m or 548,916 sq ft. It is near the Layar LRT station on Sengkang West Avenue.
Based on breakeven estimates of $650-$700 psf, Mr Li expects selling prices at the new development to range from $750 to $800 psf.
Units at another condominium in the vicinity, the Quartz, had been transacting at prices averaging $745 psf since last October, Ms Tay said.
With five-room and executive resale HDB flats in Sengkang selling for $400,000 to $500,000, Mr Li believes that there should be demand from HDB upgraders whose flats have or will soon turn five years old.
Demand could also come from the nearby Seletar private estate, he said.
The Housing Board will award the tender within the next two weeks.
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CDL's Sunmaster clinches Sengkang West residential site with S$200.5M bid
Jonathan Peeris
938LIVE
Monday, 8 February 2010, 2015 hrs
The Housing & Development Board has awarded the tender for the residential site at the junction of Sengkang West Avenue and Fernvale Link to CDL's Sunmaster Holdings.
The company submitted the highest tender for the site at S$200.5 million out of a total of 10 bids received.
The minimum offer price was S$70 million.
The land parcel is about 16,998 sqm and is for a proposed condominium development.
The lease term will be for 99 years.
The tender was launched in January this year and closed last Thursday.
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