TID wins URA condo-site tender with $84m bid

http://www.channelnewsasia.com/stori...374797/1/.html

Tender closed on site at New Upper Changi Road; top bid hits S$282 psf

By Desmond Wong, Channel NewsAsia | Posted: 09 September 2008 2135 hrs


SINGAPORE: The URA has closed the tender on a residential site along New Upper Changi Road, with the highest bid coming in at S$84 million from TID.

This translates to S$282 per square foot (psf) per plot ratio, said CB Richard Ellis.

The 9,875.5 square metre site attracted seven bidders.

CB Richard Ellis said the high number of bidders showed that developers still have an appetite for favourable sites even in the current depressed market.

Based on the highest bid, the consultancy estimates that the break even price for the location could be S$700 to S$750 psf. This translates to a potential sale price range of S$800 to S$850 psf.

Comparable developments in the area, such at the Waterfront Waves condominium near Bedok Reservoir, is going for S$800 psf on the resale market. - CNA/vm

http://www.businesstimes.com.sg/sub/...96206,00.html?

September 9, 2008, 5.41 pm (Singapore time)

TID top bidder for Tanah Merah site

By KALPANA RASHIWALA


A state tender for a 99-year leasehold private condominium site next to Tanah Merah MRT Station has drawn seven bids.

TID Pte Ltd's top bid of S$84 million works out to about S$282 per square foot of potential gross floor area.

The other bidders were Sim Lian Land (which bid S$75 million), Boon Keng Development, Bishopgsate Developments, FCL Emerald, Hoi Hup Realty and First Changi Development.

The tender, conducted by Urban Redevelopment Authority, closed at noon on Sept 9.

http://www.businesstimes.com.sg/sub/...96248,00.html?

Published September 10, 2008

Choice Tanah Merah condo site receives seven bids

By KALPANA RASHIWALA


DESPITE the quieter property market and a weak response at some state land sales, a 99-year leasehold condo site next to Tanah Merah MRT station yesterday drew seven bids.

The top bid of $84 million or $282 per sq ft per plot ratio (psf ppr) came from TID - a joint venture between Singapore's Hong Leong Group and Japan's Mitsui Fudosan.

The top bid was within the $250-300 psf ppr range predicted for the plot when it was launched by the Urban Redevelopment Authority in mid-July.

But it is 11 per cent shy of the $318.50 achieved for a neighbouring site - farther from the MRT station - in April 2006, when sentiment was more buoyant. That site is now being developed as the Casa Merah condo.

Commenting on the response at yesterday's tender, an observer said: 'The market is not dead. If a prime site comes along there will be takers, especially at state land tenders.'

Agreeing, DTZ senior director (research) Chua Chor Hoon said: 'I'm not surprised with the outcome of the tender. After all, it was for a mass-market site in an attractive location where there has always been good demand for condos.' TID's bid was 12 per cent above the next highest offer by Sim Lian Land of $75 million or nearly $252 psf ppr. The other bidders were:

# Midview group unit Boon Keng Development ($61.88 million);

# BS Capital subsidiary Bishopsgate Developments ($61.33 million);

# Frasers Centrepoint unit FCL Emerald (3), which bid $53.58 million;

# Hoi Hup Realty ($48.51 million); and

# GuocoLand subsidiary First Changi Development ($44.63 million)

CB Richard Ellis director Leonard Tay estimates that based on TID's bid price, the breakeven cost for a new condo is likely to be $700-750 psf, translating to possible sale prices ranging from $800-850 psf.

'This takes into account recent comparables, the current market, much higher construction costs and the new planning guidelines on bay windows and planter boxes,' he said.

'Waterfront Waves, a new condo at Bedok Reservoir, is currently being marketed at $800 psf on average. A sub-sale unit at Casa Merah, was sold at $783 psf in August, while in the resale market, older units in East Meadows were transacted at an average of $660 psf in the first half of 2008.'

The 106,299 sq ft plot on offer at yesterday's tender has a 2.8 plot ratio - ratio of maximum potential gross floor area to land area - and can be developed into a condo with 240-250 units averaging 1,200 sq ft.

CBRE's Mr Tay said the future project on the site will be attractive to HDB upgraders living in Bedok, Tampines and Marine Parade and private homeowners in the East Coast area.

'It will also be attractive to expats looking to rent homes along major transport nodes,' he added.

http://www.straitstimes.com/Money/St...ry_277014.html

Sep 10, 2008 Wednesday

Tanah Merah residential site attracts 7 bids


A TENDER for a choice residential development site right next to Tanah Merah MRT station has attracted a healthy seven bids - proving that even in a subdued market, location is king.

TID placed the highest bid - $84 million, or $282 per sq ft (psf) of potential gross floor area, the Urban Redevelopment Authority said yesterday.

The firm is a partnership between the Hong Leong Group and Japan's leading real estate company Mitsui Fudosan,

Its bid is 12 per cent above the second highest bid - from Sim Lian Land - at $75 million or about $252 psf of potential gross floor area.

Boon Keng Development was third at $61.88 million or about $208 psf of potential gross floor area.

Other bids were much lower, with First Changi Development coming in last at $44.63 million.

The seven bids were a strong showing. 'It's a positive shot in the arm for the property market where sentiment is concerned,' said Knight Frank's head of research and consultancy Nicholas Mak.

He said the 99-year leasehold Tanah Merah Kechil Avenue site generated healthy interest as it is next to an MRT station.

'In light of the current cautious sentiment in the residential market, the amount of interest that this site has generated provides evidence that land parcels in good locations with immediate accessibility to transport links are still sought after by developers,' said CBRE Research director Leonard Tay.

TID's bid is lower than the $318.50 psf per plot ratio price achieved for the nearby Casa Merah site back in 2006.

Property consultants said the breakeven cost of a condo at the Tanah Merah site should be at $700 psf to $750 psf, based on the top bid. This means that TID, if awarded the site, would be able to sell condo units at between $800 psf and $850 psf, they say.

JOYCE TEO

http://www.businesstimes.com.sg/sub/...96502,00.html?

Published September 11, 2008

TID wins URA condo-site tender with $84m bid


THE Urban Redevelopment Authority (URA) yesterday awarded a 99-year leasehold condo site next to Tanah Merah MRT Station to top bidder TID, just a day after the tender closed on Tuesday.

This contrasts with the couple of weeks or more that URA has taken to deliberate on awarding earlier sites, which fetched bids below expectations.

TID's $84 million winning bid reflects a land price of about $282 per square foot (psf) of potential gross floor area, within the $250-$300 psf per plot ratio range market watchers predicted for the confirmed list site when it was launched in mid-July.

TID is a joint venture between Singapore's Hong Leong Group and Japan's Mitsui Fudosan.The tender drew seven bids.

Quote:

---

Originally Posted by mr funny

http://www.businesstimes.com.sg/sub/...96502,00.html?

Published September 11, 2008

TID wins URA condo-site tender with $84m bid


THE Urban Redevelopment Authority (URA) yesterday awarded a 99-year leasehold condo site next to Tanah Merah MRT Station to top bidder TID, just a day after the tender closed on Tuesday.

This contrasts with the couple of weeks or more that URA has taken to deliberate on awarding earlier sites, which fetched bids below expectations.

TID's $84 million winning bid reflects a land price of about $282 per square foot (psf) of potential gross floor area, within the $250-$300 psf per plot ratio range market watchers predicted for the confirmed list site when it was launched in mid-July.

TID is a joint venture between Singapore's Hong Leong Group and Japan's Mitsui Fudosan.The tender drew seven bids.

---

So what will be the break even cost for now? Taking into consideration of the higher construction cost now.