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View Full Version : Sembawang sees highest bid of S$131.7m



maisonjai
08-06-10, 22:38
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1061876/1/.html
Land parcel in Sembawang sees highest bid of S$131.7m
By Desmond Wong | Posted: 08 June 2010 2006 hrs


SINGAPORE : Developers MCC Land has put in the top bid of S$131.7 million for a land parcel at the corner of Sembawang Road and Canberra Drive.

The bid works out to S$387 per square foot per plot ratio.

The second highest bid from SP Setia International came in at S$122.6 million.

Nam Hee Contractor and OPH Marymount submitted the third highest bid of S$111 million.

The lowest bid of S$85 million came from Frasers Centrepoint.

All in, the Housing and Development Board received seven bids.

Analysts said projects at the site would have a breakeven cost of between S$650 and S$750 psf, with the units possibly selling at between S$700 and S$820 psf.

Research Director at Colliers International, Tay Huey Ying, said the bids showed developers were still keen on land banking, with the prices reflecting an optimistic sentiment.

"It still trends on the bullish side considering the potential influx in supply of homes as a result of the ramped-up 2H 2010 Government Land Sale programme," said Tay.

CB Richard Ellis Research executive director, Li Hiaw Ho, added that the site's good response was helped by the location.

"The site is situated at the junction of Sembawang Road and Canberra Drive, surrounded by greenery and landed estates. It is also close to Sembawang Shopping Centre and is not far away from Sembawang MRT Station, Sembawang Interchange and Sun Plaza," said Li.

The site was put on sale in April, with 290 units expected from any proposed development on the site. - CNA /

devilplate
08-06-10, 22:50
even the most far flung/forgotten area fetches close to 400psf

days r really gone for 5xxpsf condo

azeoprop
08-06-10, 22:58
Yah all those 580psf-600psf+ like caspian, mi casa, rosewood suites, the quartz, waterfront waves and livia in 2009 are really history. :(

bargain hunter
08-06-10, 22:58
"The site is situated at the junction of Sembawang Road and Canberra Drive, surrounded by greenery and landed estates. It is also close to Sembawang Shopping Centre and is not far away from Sembawang MRT Station, Sembawang Interchange and Sun Plaza," said Li.


trying to make it not so far flung/forgotten...actually its not forgotten lah, quite a lot of pple stay there. :)

MCC is another china construction company/developer?


even the most far flung/forgotten area fetches close to 400psf

days r really gone for 5xxpsf condo

sleek
08-06-10, 23:01
This will be MCC Land's first Singapore property development. The company is part of Chinese state- owned enterprise Metallurgical Corporation of China (MCC Group).

The Housing and Development Board (HDB) awarded the tender for the 99-year leasehold site at Yishun Avenue 3 to MCC Land (Singapore) Pte Ltd today at the tender price of $127,800,000. (http://www.asiaone.com/Business/My+Money/Property/Story/A1Story20100315-204772.html)


"The site is situated at the junction of Sembawang Road and Canberra Drive, surrounded by greenery and landed estates. It is also close to Sembawang Shopping Centre and is not far away from Sembawang MRT Station, Sembawang Interchange and Sun Plaza," said Li.


trying to make it not so far flung/forgotten...actually its not forgotten lah, quite a lot of pple stay there. :)

MCC is another china construction company/developer?

azeoprop
08-06-10, 23:04
This will be MCC Land's first Singapore property development. The company is part of Chinese state- owned enterprise Metallurgical Corporation of China (MCC Group).

The Housing and Development Board (HDB) awarded the tender for the 99-year leasehold site at Yishun Avenue 3 to MCC Land (Singapore) Pte Ltd today at the tender price of $127,800,000. (http://www.asiaone.com/Business/My+Money/Property/Story/A1Story20100315-204772.html)

MCC is taking over the North! :eek:

kane
08-06-10, 23:06
is this the typical seller's margin?

sleek
08-06-10, 23:10
Since their Govt stops them from being property developers up North, this is as North as it can gets! :D


MCC is taking over the North! :eek:

Komo
08-06-10, 23:48
Does it mean that more and more jobs will be awarded to Chinese companies? (main con, sub-con, whatever con)

bargain hunter
09-06-10, 08:51
MCC Land managing director Tan Zhiyong told BT that his firm intends to build a condominium with about 300 units on the plot. The break-even price is estimated to be around $600 psf and apartments could eventually sell for $700-$800 psf, Mr Tan added. The project will be launched in the first quarter of next year.

devilplate
09-06-10, 10:32
latest 2 top bidder both r china coy. likely to bring in more mainlanders to invest in SG :cheers1:

kane
09-06-10, 10:37
their one trip to LV can buy half an apt unit.

Wild Falcon
09-06-10, 10:37
These China developers are now the "Wild card" - you never know what price they're going to bid. Local developers are all sweating and losing out in all the GLS :) I read somewhere these Chinese developers are more "bullish" on suburban properties and prefer not to enbloc/bid the more "prime" properties - so not surprised that they're bidding so aggressively here.

kane
09-06-10, 11:01
These China developers are now the "Wild card" - you never know what price they're going to bid. Local developers are all sweating and losing out in all the GLS :) I read somewhere these Chinese developers are more "bullish" on suburban properties and prefer not to enbloc/bid the more "prime" properties - so not surprised that they're bidding so aggressively here.

their aggressiveness seems to be showing in their tight selling margin. For the local boys, if their cost is 650psf, they will probably sell at 850 and up no?

Wild Falcon
09-06-10, 11:21
China developers target residential segment in Singapore (http://aboutsingaporeproperty.blogspot.com/2010/05/china-developers-target-residential.html)

Developers from China are looking to break into the Singapore property sector by building mass market and mid-tier residential homes.

Observers said the new entrants want to diversify from their home market, while seeking opportunities in Singapore’s growing property sector.

Since late 2007, China-based developers have been trying to cut themselves a slice of the pie.

While they account for no more than 5 per cent of the market, market watchers said they have been gunning for land.

“The success rate has been quite low for them – about 20 per cent of the bids turn into a successful construction project for them. Nonetheless, of all the bids they have put in, about 13 or 45 per cent of those bids, are in the top three running order, so they are quite aggressive on that front,” said Chua Yang Liang, head of Research (SEA) at Jones Lang LaSalle.

Market watchers said China developers are most active in bidding for mass market residential sites – the market they are most familiar with.

And some with deep pockets bid aggressively – such as China Sonangol Land buying the Parisian site at Paterson Road in October last year for some S$283 million.

While margins for China developers are lower, at around 20 per cent compared to the 30 per cent they can find in their home market, observers said they are willing to sacrifice a little for diversification.

But analysts also warn that China players may not stick around if the market turns down.

“When you go into a market like Singapore where there are a lot of local players, that margin could slow down to some 10-12 percent. At some point in time, they might find that there might not be good opportunities here in Singapore,” said Donald Han, MD of Cushman & Wakefield.

Some observers said that more developers from China could mean more buyers from China.

Developers coming from the mainland could bring with them client lists for investors looking to buy into Singapore property.

Source: Channel News Asia, 27 May 2010

peterng8
11-06-10, 14:08
China developers target residential segment in Singapore (http://aboutsingaporeproperty.blogspot.com/2010/05/china-developers-target-residential.html)

Developers from China are looking to break into the Singapore property sector by building mass market and mid-tier residential homes.

Observers said the new entrants want to diversify from their home market, while seeking opportunities in Singapore’s growing property sector.

Since late 2007, China-based developers have been trying to cut themselves a slice of the pie.

While they account for no more than 5 per cent of the market, market watchers said they have been gunning for land.

“The success rate has been quite low for them – about 20 per cent of the bids turn into a successful construction project for them. Nonetheless, of all the bids they have put in, about 13 or 45 per cent of those bids, are in the top three running order, so they are quite aggressive on that front,” said Chua Yang Liang, head of Research (SEA) at Jones Lang LaSalle.

Market watchers said China developers are most active in bidding for mass market residential sites – the market they are most familiar with.

And some with deep pockets bid aggressively – such as China Sonangol Land buying the Parisian site at Paterson Road in October last year for some S$283 million.

While margins for China developers are lower, at around 20 per cent compared to the 30 per cent they can find in their home market, observers said they are willing to sacrifice a little for diversification.

But analysts also warn that China players may not stick around if the market turns down.

“When you go into a market like Singapore where there are a lot of local players, that margin could slow down to some 10-12 percent. At some point in time, they might find that there might not be good opportunities here in Singapore,” said Donald Han, MD of Cushman & Wakefield.

Some observers said that more developers from China could mean more buyers from China.

Developers coming from the mainland could bring with them client lists for investors looking to buy into Singapore property.

Source: Channel News Asia, 27 May 2010



china land prices at some area already many time higher than our prime district price, now they are trying to make this happen in singapore...is it going to be good or going to be bad?

azeoprop
11-06-10, 14:36
Just wondering is there any law in sg to protect home buyers in case of the developer build halfway then runaway or bankrupt kind? :beats-me-man:

2824
11-06-10, 14:43
Think the monies will be held in a development account by the bank. Tink in s'pore it is quite safe unlike elsewhere.

Is there any developer who are showing such signs? :eek:


Just wondering is there any law in sg to protect home buyers in case of the developer build halfway then runaway or bankrupt kind? :beats-me-man:

bargain hunter
11-06-10, 14:47
there isn't. that is actually a real risk, just that, singapore developers are pretty strong on the whole and it didn't happen during the small 08-09 slump. It was rumoured that there were some concerns about novelty being a bit stretched when Iridium building progress was really slow (did it miss its indicative TOP date?). But they firesold lucida at 1100psf to get the cashflow and have come out stronger ever since with their other projects subsequently selling well.


Just wondering is there any law in sg to protect home buyers in case of the developer build halfway then runaway or bankrupt kind? :beats-me-man:

devilplate
11-06-10, 16:21
there is certain amount of risk definitely

tats y the gilstead2 by msian developer seems scary. anw i am biased:D

Komo
11-06-10, 19:10
Perhaps one good reason to take bank loan is to "share" the risk!

peterng8
12-06-10, 15:48
Think the monies will be held in a development account by the bank. Tink in s'pore it is quite safe unlike elsewhere.

Is there any developer who are showing such signs? :eek:


:D china developers with a lot of cash to flush bid high high and thinking to sell high high to residents or investors...will that work?? if yes...more will come and bubble will form soon in singapore...:D