Frasers Centrepoint Trust puts in top bid of S$88m for Woodleigh site

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Frasers Centrepoint Trust puts in top bid of S$88m for Woodleigh site

By Channel NewsAsia | Posted: 24 June 2008 2042 hrs


SINGAPORE: Frasers Centrepoint Trust has put in the top bid of nearly S$88 million for a residential site at Woodleigh Close. The price works out to S$270 per square foot per plot ratio.

The next highest bid came from Hoi Hup Realty at about S$83 million. The lowest at S$74 million was put in by Sim Lian Land.

The Urban Redevelopment Authority received six bids in total when the tender closed on Tuesday.

The site at Woodleigh Close was launched for public tender on April 29.

The 99-year leasehold parcel spans nearly 10,800 square metres, with a maximum gross floor area of some 30,200 square metres.

Property consultants CB Richard Ellis says based on the top bid of S$270 per square foot plot ratio, the estimated breakeven cost of the new project is around S$650 to S$700 per square foot.

It expects the units to be sold between S$800 and S$850 per square foot. - CNA/ac

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Published June 25, 2008

Bids for Woodleigh condo site lower than estimates

Top bid from Frasers Centrepoint is $270 per sq ft per plot ratio

By ARTHUR SIM


THE tender for a residential site at Woodleigh Close has closed, with the Urban Redevelopment Authority (URA) receiving a top bid of $270 per sq ft per plot ratio (psf ppr).

The 1.08 ha site near Potong Pasir MRT station was launched in April. Earlier estimates by property consultants had put the range of bids at $300-$380 psf ppr.

The top bid of $270 psf ppr or $87.7 million came from Frasers Centrepoint and is just 6 per cent higher than the second highest bid of $255 psf ppr from Hoi Hup Realty.

The lowest bid of $227 psf ppr was from Sim Lian Land and is about 16 per cent lower than Frasers Centrepoint's bid.

Asked if the site will be awarded despite the bids being low, Cushman and Wakefield managing director Donald Han said: 'Based on the today's market, and the fact that the bids were all quite close, I believe the site will be awarded.'

Mr Han said he does not think the bids were opportunistic. 'A developer would have to consider that the market could remain challenging. New projects may not sell as quickly and construction costs have gone up.'

But he believes that 'at the end of the day, there is still money to be made'.

The tender also drew bids from Hong Leong Group, GuocoLand and Hiap Hoe.

Giving a glimpse of developer sentiment, Frasers Centrepoint CEO Lim Ee Seng said: 'If a site is good, there will always be bidders.'

And Mr Lim for one believes that potential over-supply has been addressed by the latest Government Land Sales Programme. 'Most of the sites are on the reserve list,' he said.

In July 2007, Frasers Centrepoint clinched a nearby site at Woodsville Close for $434 psf ppr.

Li Hiaw Ho, executive director at CBRE Research, said that based on the top bid of $270 psf ppr, the estimated breakeven cost of a new project on the Woodleigh Close site will be $650-$700 psf.

He pointed out that in January-June, resale units in the freehold Blossoms changed hands at an average price of $840 psf, while units in Casa Meya, a new freehold project in Potong Pasir estate, were sold for around $910 psf. 'Therefore, it is likely that a new 99-year leasehold project in this location may be able to fetch $800-$850 psf,' he said.

Chesterton International's head of research and consultancy Colin Tan said the bids 'reflect that developers are looking at demand from owner occupiers and genuine buyers' and will have to keep prices 'affordable' accordingly.

Mr Tan also believes that developers are keenly aware of the need to keep 'revenue flows going', in light of lower sales in the current market, 'to pay salaries of their staff in the marketing department'.

Separately, the URA has made residential sites at Sembawang Road/ Canberra Drive and Sengkang West Avenue/Fernvale Link available on the reserve list.

The 25,825 sq m Sembawang Road/Canberra Drive site can be developed into strata landed housing, a condominium or flats, while the 17,000 sq m Sengkang West Avenue/Fernvale Link site is for a condominium.

http://www.straitstimes.com/Money/St...ry_251401.html

June 25, 2008

Woodleigh site draws six fairly low bids

By Joyce Teo, Property Correspondent


THE tender for a Woodleigh Close residential site attracted plenty of interest, but the bids were all on the low side.

Six hopefuls lined up for the 1.08ha, 99-year leasehold site with Frasers Centrepoint lodging the top bid of $87.68 million, or $270 per sq ft (psf) of gross floor area.

This falls well below expectations of at least $350 psf and reflects the market's subdued state.

Hoi Hup Realty was the second highest bidder with an offer of $82.82 million or $255 psf.

A joint venture between Hong Leong Holdings unit Kingston Development and TID offered $81.18 million or $250 psf.

The other bids for the site near the Potong Pasir MRT station ranged from $74 million to $81 million.

CBRE Research executive director Li Hiaw Ho said: 'While the six bids submitted for the site reflects fairly good interest, the lower quantum of prices is a reflection of a more tentative mood in the residential market and rising construction costs.'

Mr Ku Swee Yong, Savills Singapore's director of marketing and business development, said: 'The bids are lower than expected because of higher construction costs, as well as the shorter and more expensive credit lines extended to developers.'

Frasers Centrepoint aims to build about 300 high-rise condominium units on the site.

Based on the top bid, the estimated breakeven cost of the new project will be around $650 psf to $700 psf, said Mr Li.

He added that the new apartments could go for $800 psf to $850 psf, considering that nearby units in freehold Blossoms@Woodleigh have been sold in the resale market at an average price of $840 psf this year.

Also, units in Casa Meya, a new freehold project in Potong Pasir estate featuring mostly small units of around 800 sq ft, went for around $910 psf, said Mr Li.

But a market watcher said Frasers Centrepoint may be hoping to sell the new apartments for up to $900 psf.