Bartley site draws top bid of $620.61 psf ppr

[sleek]

URA receives 8 bids for Bartley site
Posted: 31 March 2011 0109 hrs

SINGAPORE : Property developers Intrepid Investments, Sunmaster Holdings and TID Residential have jointly submitted the highest bid of S$413.3 million for a residential site at Bartley Road/Lorong How Sun.

The Urban Redevelopment Authority (URA) received a total of eight bids at the close of the tender on Wednesday.

The second highest bid of S$410 million came from Sherwood Development.

The 22,094 square metre site, with a 99-year lease, was launched for tender on February 10.

CBRE Research executive director Li Hiaw Ho said that a high-rise condominium of around 620 units can be built on the site.

He also pointed out that the top bid works out to S$621 per square foot (psf) per plot ratio and this translates to a breakeven cost of S$1,000 to S$1,050 psf.

Mr Li also said that a new condominium project, Nin Residence, located at Potong Pasir MRT Station was launched at S$1,250 psf in December last year.

"We expect units in the new residential project on the subject site to fetch prices at about the same level," he added.

URA said it would decide on the winning bidder at a later date.

- CNA/al

[fclim]

I would think that breakeven price is at least $1,200 psf given that construction costs are likely to go up with inflation, Japan reconstruction efforts and high fuel costs. Selling price at $1,400 to $1,500 psf?

[Allthepies]

the developer can cut cost by replacing marble with tiles, using lousier fittings blah blah blah. Regardless of the cost saving features implemented, the developer will still sell high

[ysyap]

the developer can cut cost by replacing marble with tiles, using lousier fittings blah blah blah. Regardless of the cost saving features implemented, the developer will still sell high

That would make the landed in how sun as well as the condos along bartley road as well as upper paya lebar look cheap... prices there will surely climb if tender is awarded to the top bid (never heard that URA award bid to 2nd highest bid)... hmmm...

[rattydrama]

the developer can cut cost by replacing marble with tiles, using lousier fittings blah blah blah. Regardless of the cost saving features implemented, the developer will still sell high

Some control measures should be in place right now before it becomes an issue. Gov Agency should be more pro active rather than re active. Is there code of practice for our local developers to follow on the dos and donts?

So many small time developers ... They could hit and run...leaving behind an unwanted overpaid property to the poor owner. Not healthy for Singapore.

[DC33_2008]

Got good primary and secondary schools with mrt stn. Can sell higher.

I would think that breakeven price is at least $1,200 psf given that construction costs are likely to go up with inflation, Japan reconstruction efforts and high fuel costs. Selling price at $1,400 to $1,500 psf?

[ysyap]

I would think that breakeven price is at least $1,200 psf given that construction costs are likely to go up with inflation, Japan reconstruction efforts and high fuel costs. Selling price at $1,400 to $1,500 psf?

Anything above $1300 psf in D19 will surely be difficult to sell lah unless they only build MM units up to 2 bedders like Space @ Kovan. Must have value added features too. Don't think it can be so high psf lah...

[mr funny]

http://www.businesstimes.com.sg/sub/...01540,00.html?

Published March 31, 2011

Bartley site draws top bid of $620.61 psf ppr

Bid by Hong Leong, CityDev, TID was 0.8% higher than next highest bid

By KALPANA RASHIWALA


A PARTNERSHIP between Hong Leong Holdings, City Developments and TID yesterday emerged as the top bidder for a 99-year leasehold private condo site next to Bartley MRT Station.

Its bid of $413.27 million, or $620.61 per square foot of potential gross floor area, was just 0.8 per cent higher than the next highest bid, from Keppel Land.

The tender drew eight bids. The lowest bid from Plan Achieve Limited was $391.95 per square foot per plot ratio (psf ppr).

The top bid was the second highest for a residential plot on the Government Land Sale Programme since the property market recovered in 2009, after the plot near Bishan MRT Station that CapitaLand clinched in February for $869 psf ppr, says SLP International executive director Nicholas Mak. The Bishan plot drew 19 bids.

Market watchers also noted that the Bartley plot's top bid was close to the $607 psf ppr that Qingdao Construction paid for a site next to Potong Pasir MRT Station in June last year. That site is now being developed into Nin Residence, which was launched in December at $1,250 psf on average. To date the 219-unit project is about half sold.

'We expect units in the new Bartley residential project to fetch prices at about the same level,' said CBRE Research executive director Li Hiaw Ho. He estimates Hong Leong's breakeven cost could be around $1,000-$1,050 psf.

Analysts noted that the new project will be just an MRT stop away from nex mall.

It is also within two kilometres of popular schools, such as Maris Stella High and Maris Stella Primary, and Paya Lebar Methodist Girls' Primary School, which will boost the development's draw for families with school-going children, says Mr Mak.

Others who bid at yesterday's tender include Exclusive Partners (whose shareholders include Ho Lee Group) which bid $580 psf ppr; a Far East Organization-Frasers Centrepoint tie-up which offered $576.66 psf ppr; MCL Land ($530.10 psf ppr); Sim Lian Land ($465.53 psf ppr); and Allgreen Properties ($429.61 psf ppr).

Credo Real Estate executive director Ong Teck Hui summed up the outcome as 'a mix of confident and cautious bidding'.

'The top few bidders reflect confidence on market outlook and selling price while the lower bidders were obviously more cautious.'

All eyes are now on the April 7 closing for a state tender of a 99-year private condo site near Boon Keng MRT Station at the fringe of the city.

Hong Leong Group said yesterday evening that Hong Leong Holdings, CDL and TID plan to develop a condo with about 700 units on the Bartley Road site aimed at young families, professionals and upgraders.

'The Circle Line strategically connects this site to a host of shopping malls and schools such as nex mall, Junction 8, Australian International School and Nanyang Junior College among others,' the group said.

Separately, the Urban Redevelopment Authority yesterday launched the tender for a 'white' site next to Jurong East MRT Station. The tender will close on May 25.

The site has been triggered from the reserve list following a successful application by an unnamed developer which has agreed to bid at least $510 million or about $532.49 psf ppr.

The 99-year leasehold site can be developed into a project with a maximum gross floor area of 957,772 sq ft, of which at least 40 per cent has to be for office use.

The rest can be for any mix of commercial (such as retail and entertainment), hotel or residential use.

[mr funny]

http://www.straitstimes.com/Money/St...ry_651198.html

Mar 31, 2011

Bartley condo site sees 8 bids

Mix of confident and cautious bidding: Analyst

By Cheryl Lim


A CONSORTIUM that includes big hitters Hong Leong Group and City Developments trumped seven other bidders to lodge the top offer of $413 million for a Bartley Road site.

The offer by the consortium, which also includes TID Residential, works out to $621 per square foot per plot ratio (psf ppr).

It was less than 1 per cent higher than the $410 million offered by a Keppel Land unit, but almost double the bid that triggered the tender for the reserve list site.

A Qingdao Construction joint venture came in third with $386 million.

MCL Land, Allgreen Properties, and a joint venture of Far East Organization and Frasers Centrepoint were also among the bidders.

Hong Leong Group said it plans a development of about 700 units aimed at young families, professionals and upgraders for the 99-year leasehold site.

The 237,822-sq-ft site is zoned for condominium development and can be built up to a maximum gross floor area of 665,909 sq ft.

Property observers said the number of bids and the level of participation were within expectations.

Credo Real Estate's head of research and consultancy, Mr Ong Teck Hui, described the tender's results as a 'mix of confident and cautious bidding'.

'The top few bidders reflect confidence on market outlook and selling price, while the lower bidders were obviously more cautious.'

The site's proximity to Maris Stella High and Paya Lebar Methodist Girls' Primary, both popular schools, would make a development there an attractive option for families, said analysts.

The land is also near Bartley Circle Line MRT station, connecting it to shopping malls like Nex and Junction 8.

Nearby land that has been developed into Nin Residences was sold for $607 psf ppr. The project was launched at about $1,250 psf last December.

Analysts estimate the break-even price for the new condominium on the Bartley site to hover around $990 to $1,030 psf.

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