Upper Serangoon DBSS site draws just 2 bids

[mr funny]

http://www.businesstimes.com.sg/sub/...33540,00.html?

Published December 1, 2010

Upper Serangoon DBSS site draws just 2 bids

LKH unit offers $155.2m, pipping Sim Lian's $113.3m

By UMA SHANKARI


A LAND parcel offered for sale under the Design, Build and Sell Scheme (DBSS) at Upper Serangoon Road received just two bids at the close of the government tender yesterday.

A unit of Low Keng Huat (Singapore) made the higher bid of $155.2 million. The price works out to $206 per square foot per plot ratio (psf ppr), which is within analyst expectations.

Low Keng Huat's offer was 37 per cent higher than the other bid, from Sim Lian Land. Sim Lian offered $113.3 million, or $150 psf ppr.

Eugene Lim, associate director of ERA Asia Pacific, said that based on the tender price, Low Keng Huat will be looking to sell the upcoming flats on the site at about $500-540 psf.

He added that this would make the upcoming DBSS flats significantly cheaper than new private homes in the locality.

New sites for private residential developments in the vicinity are now being sold for upwards of $300 psf ppr, he said.

ERA's data shows that four-room resale HDB flats in the area are selling for $400,000-420,000 while five-room resale flats are going for around $500,000-540,000.

Market watchers had expected the Upper Serangoon Road site to draw a small number of bids when it was launched in October. Interest in such sites might be muted given the recent property cooling measures and the expected economic slowdown, they said.

Ong Kah Seng, senior manager of Asia-Pacific research at Cushman & Wakefield, said when the site was launched that it would draw only 'modest' interest and estimated that the highest bid would probably come in at the $200-230 psf ppr range.

The 103-year leasehold site along Upper Serangoon Road is about 215,300 sq ft in size and has a maximum allowable gross floor area of 753,500 sq ft. It can accommodate an estimated 630 units.

Under the Housing Board's DBSS scheme, private developers will undertake the entire public housing development process, from tendering for the land to designing, building and selling the flats.

[mr funny]

http://www.straitstimes.com/Money/St...ry_609127.html

Dec 1, 2010

Condo-style public housing plot attracts only two bids

By Daryl Chin


A COMPANY linked to construction firm Low Keng Huat yesterday put in the top bid for a public housing site under the Design, Build and Sell Scheme (DBSS) for condo-style public flats.

But there was not much competition: only one other bid came in for the plot at Upper Serangoon Road opposite Serangoon Secondary School, the Housing Board said yesterday. This is the weakest reception for a DBSS tender since 2008.

Kwan Hwee Investment beat the other contender, Sim Lian Land, with a bid of $155.23 million. The company came in second in a tender last month for a DBSS site at Bedok Reservoir Crescent.

The Upper Serangoon plot measures 215,278 sq ft and has a maximum gross floor area of 753,474 sq ft. This works out to be about $206 per square foot per plot ratio (psf ppf).

The site is estimated to yield 630 dwelling units.

Mr Nicholas Mak, research executive director for SLP International Property Consultants, said the recent slew of sites announced for sale by the Government could be one of the reasons for the low number of bids for this plot.

The Government Land Sales programme for the first half of next year will have a total of 30 sites that can generate a record 14,300 residential units - higher than the 13,900 residential units offered for the second half of this year.

For that reason, said Mr Mak, some developers may be conserving their residential resources for upcoming land tenders.

'Another reason is that some developers may also be concerned that the HDB resale market may cool, thereby reducing the demand for DBSS flats,' he said.

He estimates that Kwan Hwee Investment's bid could translate to a break-even cost of about $420 to 450 psf. He added that this would mean a five-room flat in the project could be launched at a price of $500,000 to $535,000.

Meanwhile, Punggol will soon see the launch of its first executive condominium, located in Punggol Central.

Prices at Prive will average between $660 and $690 psf, said NTUC Choice Homes Co-operative in a press release yesterday. It is jointly developing the project with CEL Development.

The four-tower development will comprise 680 apartments, ranging from two- to four-bedroom units.

Apartment sizes start from 775 sq ft for a two-bedder to 1,442 sq ft for a four-bedroom unit.

Viewing and e-application start from Friday, while sales bookings start from Dec 10.

Additional reporting by Cheryl Lim

[jitkiat]

Key thing is to watch out for US 10y treasury bond yield, has risen like crazy since announcement of QE2 ... opposite of what QE2 is hoping to achieve, to lower 10y interest rate



2,3,5,7 bond yield also up up up:

http://www.treasury.gov/resource-cen...spx?data=yield

[devilplate]

wats the verdict?

[jitkiat]

wats the verdict?

That means banks who offer 2y/3y fixed loan at below 2% is having very very high risk now so expect bank load rate to shoot up soon

[devilplate]

That means banks who offer 2y/3y fixed loan at below 2% is having very very high risk now so expect bank load rate to shoot up soon

err...i actually wanted to noe y 10yr bond rise instead of drop after QE2

[jitkiat]

err...i actually wanted to noe y 10yr bond rise instead of drop after QE2

Buy on facts, sell on news + rising inflation expectation

[devilplate]

Buy on facts, sell on news + rising inflation expectation

wah chim....

so when will the sibor rate rise? pretty soon?

[patricia]

err...i actually wanted to noe y 10yr bond rise instead of drop after QE2

With QE2 investor perceive that US$ is now a high risk (i.e. will decrease in strength over short time) and hence ask for more yield when buying bond. Bond needs to be high yield ( mean high interest rate) to attract investor to bite.

[DuffyDuck]

I thought when Bond Yield goes up = Stock market down and Interest rate either stable or decrease

[patricia]

I thought when Bond Yield goes up = Stock market down and Interest rate either stable or decrease

Correct. Stock down, interest rate down and then bond yield will go down. It is all in a circle. The critical question is that at what stage is the current ecomony? 600B dollar question