HDB closes tender for Tampines Central 7 after four bids

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HDB closes tender for Tampines Central 7 after four bids
By Julie Quek | Posted: 14 April 2011 2150 hrs

SINGAPORE: The Housing and Development Board (HDB) has closed the tender for a residential site at Tampines Central 7 after receiving four bids.

The highest bid came from developer Sim Lian Land for S$278.8 million.

The land parcel has a site area of 22,000 square metres and a maximum gross floor area of 66,000 square metres.

The site, slated for executive condominium (EC) housing, was launched for public tender on February 23 and has a lease period of 99 years.

Director of Research & Advisory at Colliers International, Chia Siew Chuin, said the top bid translates to about S$392 per square foot per plot ratio and is yet another record unit land price set for an EC project.

Ms Chia added that while the number of contenders for the site was modest with four parties, the top bid reflects a very bullish outlook for EC developments.

Earlier last month, a recently-awarded EC land parcel located at Choa Chu Kang Drive saw a land price of about S$321 per square foot per plot ratio.

HDB said it will evaluate the tender bids and announce the final tender results at a later date.

- CNA/cc

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http://www.businesstimes.com.sg/sub/...97540,00.html?

Published April 15, 2011

Record price set for EC land in Tampines

Sim Lian's offer of $392.45 psf ppr beats closest rival by 14.7%

By KALPANA RASHIWALA


A NEW record price has been set for executive condominium (EC) housing land.

A state tender yesterday for an EC plot at Tampines Central 7, about 800 metres from Tampines MRT Station, drew just four bids; but the highest, from Sim Lian Land, was $278.8 million or $392.45 per square foot of potential gross floor area.

This bust the recent record of $320.86 per square foot per plot ratio (psf ppr) set just last month for EC land by a City Developments and TID partnership for a plot at Choa Chu Kang Drive.

Sim Lian's bid at yesterday's tender for the Tampines plot was also a whopping 14.7 per cent higher than the next highest offer of $342.05 psf ppr by Quingdao Construction (Singapore).

'This is one of the best-located EC sites ever to be released,' said Diana Kuik, executive director of Sim Lian Group, pointing to the site's proximity to Tampines MRT Station and the proposed Tampines Town Hub, a one-stop lifestyle destination that will include a mega community club (CC), performing arts theatre, retail shops, food and beverage outlets, a library and a bowling alley.

Sim Lian is planning to develop a 14- to 15-storey EC project on the site with about 660 apartments (comprising two- to four-bedders) slated for launch in the first quarter 2012. The majority of units are likely to be three-bedders, with typical sizes of 1,100-1,200 sq ft, Ms Kuik said.

Analysts note that the developer is no newbie to the location; it is behind two design, build and sell scheme (DBSS) public housing flat projects just a stone's throw away from the EC plot tendered yesterday. In addition, the group is involved in the construction business, giving it a firm handle on construction costs and confidence to bid aggressively for yesterday's EC site, suggest some analysts.

ECs are a hybrid of public and private housing with initial buyer eligibility and resale restrictions - all of which are lifted 10 years after the project's completion.

The other two bids at yesterday's tender came from a tie-up between Frasers Centrepoint and Keong Hong Construction ($330.79 psf ppr); and Soilbuild Group Holdings ($279.98 psf ppr).

Market watchers estimate Sim Lian's breakeven cost could be in the $650-700 psf range and that it would have assumed an average selling price of at least $750 psf - or close to the price at which Esparina Residences, an EC project near Buangkok MRT Station, which was released around October last year.

Colliers International director of research and advisory Chia Siew Chuin said that given the uptrend in EC land prices, which would translate to higher launch prices for new EC projects under buoyant market conditions, 'it may perhaps be timely for the government to review the EC scheme, which is intended to provide affordable housing to buyers in the sandwich class'.

She suggests mechanisms could be introduced for guide prices for both land bids as well as selling prices for the resulting EC projects - although she acknowledged difficulties in implementing such a system.

BT in a commentary last month suggested the government may wish to consider bringing back the old system of directly allocating some EC sites - at prices set by the state - to the likes of NTUC Choice Homes Co-operative with accompanying guide launch prices for the projects to be built on them.

Choice Homes has a mission of developing quality housing at affordable prices to help more Singaporeans own private property. The co-op has been absent at state tenders in recent months, including those for EC sites.

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http://www.straitstimes.com/Money/St...ry_656980.html

Apr 15, 2011

Tampines EC site draws top bid of $279m

By Cheryl Lim


SIM Lian Land has broken the record for an executive condominium (EC) site with a bid of $278.8 million for a plot in Tampines. Their bid works out to $392 per sq ft per plot ratio (psf ppr).

The previous record, in terms of the price per sq ft that can be developed, for an EC site was $321 psf ppr for a Choa Chu Kang site, purchased by City Developments and TID last month.

Sim Lian's bid beat three others and was almost 15 per cent higher than the next highest bid of $243 million by Qingdao Construction.

If awarded the site, Sim Lian said it plans to build a project with 10 blocks, each of 14 or 15 storeys. The development would contain 660 units, including a mix of two-, three- and four-bedroom units along with penthouses.

The other two bids were for $235 million from a Frasers Centrepoint and Keong Hong Construction joint venture, and $198.9 million from Soilbuild Group Holdings.

The 99-year leasehold site measures 236,806 sq ft. It can be built to a maximum gross floor area of 710,418 sq ft.

Situated in Tampines Central 7 in the heart of Tampines Town, the plot is near malls, social and recreational amenities including Tampines Regional Centre, a swimming complex and a library. Nearby transport options include the Tampines MRT station and the upcoming Downtown Line 3.

Mr Ong Teck Hui, Credo Real Estate's head of research and consultancy, said the site's proximity to the MRT and other amenities made it a fairly good site.

However, the four bids suggested there was no widespread appeal among developers for the site, he said.

Mr Nicholas Mak, SLP International's research head gave one reason for the lack of interest: 'The sales of some of the existing EC launches had slowed down recently, which indicates lower demand for such housing types.'

However, Mr Ong noted that the level of bids submitted by participating developers reflected strong optimism in the EC market segment and the subject site.

Analysts have pegged the targeted selling price of the future project at close to or above $800 psf.

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Extracts from a Kim Eng report:maybe not


EC gap to fill, or maybe not
"

A land parcel designated for executive condominium (EC) development in Tampines was recently sold for
$278.8m, or $392.4 psf ppr, erasing the record that was set just a few weeks earlier by an EC site in Choa
Chu Kang. Based on the amount forked out by the developer, we reckon the average selling price will have
to be around $820 psf. As far as ECs go, and there are only 27 such projects in Singapore, only Bishan Loft,

which was completed in 2004, has ever convincingly surpassed this price level. A top

‐floor unit was sold for

$1.88m, or $944 psf, in 2010, making it the most expensive EC to

‐date. Interestingly, the estimated ASP of

$820 psf for the Tampines site was the highest price achieved by Esparina Residences, the EC in Sengkang

which rekindled market interest in this housing type when it was launched in 4Q10 after a five

‐year hiatus.

The EC scheme is essentially a hybrid of public and private housing development. Theoretically, prices

should fall in the gap between the two. But with tender prices for EC sites setting new highs, there would

seem to be no in

‐between choices for upgraders and the “sandwich class” alike. In our view, the proposed

Tampines EC would probably be priced at $650

‐950 psf, almost mirroring the $650‐1,105 psf range

(excluding penthouse units) fetched by The Waterview, a nearby private condominium. But all is not lost.

In other places like Sengkang, the ECs are more reasonably priced between the higher end of the HDB

segment and the lower end of the private condo segment. Here, perhaps, buyers may be able to find an

alternative despite the various resale restrictions on EC units in their first 10 years."

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Interesting to note Developers' Land Bank in the article