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Thread: Top bid for Pasir Ris site from Frasers Centrepoint, Far East

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    Default Top bid for Pasir Ris site from Frasers Centrepoint, Far East

    http://www.businesstimes.com.sg/sub/...63140,00.html?

    Published October 1, 2010

    Top bid for Pasir Ris site from Frasers Centrepoint, Far East


    FRASERS Centrepoint and Far East Organization have jointly put in the top bid of $151.4 million, or $335 per square foot per plot ratio (psf ppr) for a residential site at Pasir Ris.

    Just four bids were received for the 99-year leasehold site at the junction of Pasir Ris Drive 3 and Pasir Ris Drive 4 at close of the state tender yesterday.

    Frasers Centrepoint and Far East plan to build a project with 400-450 units through a 50:50 joint venture if the site is awarded to them. The project, which will be completed in about five years, will target HDB upgraders in the east and the vicinity.

    The offer by the two developers was 8 per cent above the second-highest offer of $140.7 million or $311 psf ppr from Hoi Hup Realty, Sunway Developments and SC Wong Holdings.

    The two other bids came from Allgreen Properties ($131.9 million or $292 psf ppr) and Meadows Investment ($106 million or $234 psf ppr).

    The tender result mirrors that for an executive condominium site at Punggol which closed on Sept 23 and drew just four bids.

    Since the government introduced new measures to cool the property market on Aug 30, developers have been increasingly cautious with land tender bids, said Nicholas Mak, executive director of SLP International Property Consultants.

    He also noted that in the current second half-year, no Reserve List site has been triggered for tender as the government is pushing out a large supply of land under the Confirmed List.

    The top bid of $335 psf ppr for the Pasir Ris site translates to a breakeven cost of $650-$680 psf, said Li Hiaw Ho, executive director of CBRE Research. He expects that units in the new residential project could sell for about $800 psf.

    CBRE's data shows that private homes nearby have been selling for around that price.

    Around 350 units at the nearby NV Residences have reportedly been sold at an average price of $835 psf in the past month. And units at Livia, adjacent to NV Residences, went for between $720 psf and $840 psf between July and September. Over at Elias Road, units at Oasis@Elias sold at between $650 psf and $740 psf in the same period.

    Separately, the Urban Redevelopment Authority yesterday released detailed sale conditions for an industrial site at Woodlands Avenue 12.

    Developers interested in purchasing the site can now apply to URA for it to be put up for tender.

    The 60-year leasehold parcel - the first of four new sites to be released for sale under the Reserve List of the government's H2 2010 industrial land sales programme - covers about 2.1 ha and has a gross plot ratio of 2.5.

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    http://www.straitstimes.com/Money/St...ry_585330.html

    Oct 1, 2010

    Pasir Ris condo plot receives four tenders

    By Joyce Teo, Property Correspondent


    A CONDOMINIUM plot in Pasir Ris attracted four bidders, though the offers were relatively conservative.

    The top tender - from a joint venture between Frasers Centrepoint and Far East Organization - came in slightly lower than expected at $151.38 million, or $334.85 per sq ft (psf) per plot ratio (ppr).

    That was 7.6 per cent above the $140.69 million offered by a tie-up between Hoi Hup Realty, Sunway Developments and SC Wong Holdings.

    Allgreen Properties was next with $131.89 million, with Meadows Investment, a firm owned by Tiong Aik Group executive director Neo Tiam Boon, in fourth place with $106 million.

    Property experts said the response shows that developers who lodged bids were in two minds - cautious following the August cooling measures but fairly keen on this particular site even though it is not near an MRT station.

    The 99-year leasehold plot at the junction of Pasir Ris Drive 3 and Pasir Ris Drive 4 is a 10-minute walk from the Downtown East lifestyle and entertainment hub. It has a site area of about 20,000 sq m and an allowable gross floor area of 42,000 sq m.

    If successful, Frasers Centrepoint and Far East plan to build a 12-storey condo with 11 blocks comprising 400 to 450 units in all and aimed at HDB upgraders.

    'The quantum of the bids indicates that the developers are optimistic about this site, given the strong sales at the recently launched NV Residences in Pasir Ris Drive 1, in addition to the sea view for units on the higher floors,' said CBRE Research executive director Li Hiaw Ho.

    Before the August cooling measures were introduced, industry sources said the site might not attract strong bids as it was not near an MRT station. One forecast bids of between $350 and $390 psf ppr, although even that proved optimistic.

    The bid from Frasers and Far East translates into a break-even cost of $650 to $680 psf, according to CBRE Research. Units in the new project on the site would possibly sell for about $800 psf.

    NV Residences nearby reportedly sold around 350 units at the average price of $835 psf last month, it added.

    Units in Livia, adjacent to NV Residences, were sold at between $720 and $840 psf in the July to September period.

    And units at Oasis @ Elias in Elias Road sold for between $650 and $740 psf in the same period, noted Mr Li.

    The Frasers and Far East joint offer was similar to the highest bid some executive condominium sites received in the first half, noted Cushman & Wakefield's senior manager of research, Asia Pacific, Mr Ong Kah Seng.

    Lower prices are ultimately beneficial for developers as the break-even price will be lower, he added.

    The potential for better profit margins is there should prices not fall significantly, he said.

    Developers are increasingly cautious given an expected economic slowdown after robust first-half growth, uncertainties in the wider economy and a temporary slowdown in buying interest, he added.

    The HDB said it will evaluate the tender bids and announce the results within two weeks.

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    Good to see some dampening effect on the pte property scene.

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    Quote Originally Posted by pengful
    Good to see some dampening effect on the pte property scene.
    Am surprised that CDL didn't come in to mop up this plot so that they can control pricing in Dist 18, given NV residence and another plot they yet to build....

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    CDL wants FC/FEO to price higher at this project in order for them to raise the selling price of the remaining units.

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    Just like The Arte (CDL) & Vista Res (FEO) at Jln Datoh..

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    Quote Originally Posted by DC33_2008
    CDL wants FC/FEO to price higher at this project in order for them to raise the selling price of the remaining units.
    Ya good point. CDL got win FEO is going to bid and want to win. To loose is to win more!!

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    sure anot? den those who got a stake in pasir ris gona huat? FEO gona achieve 1kpsf+ for pasir ris?

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    Quote Originally Posted by devilplate
    sure anot? den those who got a stake in pasir ris gona huat? FEO gona achieve 1kpsf+ for pasir ris?
    FEO is always 20% higher.

    335 psf for land bid, there is alot of rooms for far east to play with.

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