$191.8m top bid for Sembawang site

[vboy]

Sembawang-Jalan Sendudok site sees S$191.8m bid
Posted: 26 May 2011 2151 hrs
Photos 1 of 1 ">


SINGAPORE: Hao Yuan Investment has submitted the highest bid of S$191.8 million for a residential site along Sembawang Road and Jalan Sendudok.

The Urban Redevelopment Authority (URA) closed the tender for the site, after receiving six bids in total.

The 27,600 square metre site, with a 99-year lease, was launched for tender on March 29.

CBRE Research said the site seems fairly popular based on the number of bids and quantum it attracted.

The top bid translates to about S$4,950 per square metre.

CBRE Research added that the top bid is somewhat higher than market expectations.

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

-CNA/wk

[fclim]

Breakeven $800 psf. Selling $950 to $1K psf.

[hyenergix]

This wave of psf increase seems stoppable given the absence of CM5 and interest rate increase. We will only feel the increase when the plots are launched in the next few months. Since Capitaland (GLC), big brand name developers, local banks and large construction and support industries are involved, the government will not crash the market. Because their hands and legs are tied.

[ay123]

really cannot understand the developer. they just continue to bid higher n higher without consideration on the location. are they really so desperate or they think that spore being a tiny dot, every inch of land is precious!!!

[ysyap]

Think they look at US and Europe economy and know that investors will flock to same safe haven and Singapore is one of them... full of confidence... So is that good news for Singaporeans? Hmmm...

really cannot understand the developer. they just continue to bid higher n higher without consideration on the location. are they really so desperate or they think that spore being a tiny dot, every inch of land is precious!!!

[solsys]

Singapore being re-rated by US and China and the whole world.

No natural disasters and sound government made known to the world because of our sinful 2 x IRs.

Real Estate safe haven in the world.

Just heard from a colleague that a friend of hers, bought a landed FH in north for S$1million one year ago and someone wanna buy at close to S$1.9million.

[avo7007]

Who is this Hao Yuan Investment ? Local or foreign developer?

.....Found the answer: It's a China developer.

China buy this, China buy that. Small local developer eat grass liao.

[ay123]

Who is this Hao Yuan Investment ? Local or foreign developer?

.....Found the answer: It's a China developer.

China buy this, China buy that. Small local developer eat grass liao.

china is expanding their influence. maybe at this price they cannot get a decent land in china and their lease is 60 yrs. so how?? is it to continue buying since everyone is so positive.....

[rattydrama]

china is expanding their influence. maybe at this price they cannot get a decent land in china and their lease is 60 yrs. so how?? is it to continue buying since everyone is so positive.....

Yr post will surely induce would be buyer to quickly ink the otp dotted line....

[ay123]

Yr post will surely induce would be buyer to quickly ink the otp dotted line....

so far:-
developers are positive
buyers are positive
spore economy is positive
invester also positive (after latest measure)

the only negative feel is whether any new measure and 4 years stamp duty. but the impact of measure are short term, so long term view seem to be healthy grow unless something unexpected happen.

[DC33_2008]

Do not think CM will come so quickly after what KBW said.

so far:-
developers are positive
buyers are positive
spore economy is positive
invester also positive (after latest measure)

the only negative feel is whether any new measure and 4 years stamp duty. but the impact of measure are short term, so long term view seem to be healthy grow unless something unexpected happen.

[linchong84]

really cannot understand the developer. they just continue to bid higher n higher without consideration on the location. are they really so desperate or they think that spore being a tiny dot, every inch of land is precious!!!

canberra residences' land bid was around 380-400psf right? This one is nearer to sembawang shopping centre and time gap around 1 year liao, so naturally bid will be higher than CR and launch price will be higher too.. Nothing surprising at all.. in fact i had thought it will be nearer to 500, maybe around 480.. 460psf is definitely reasonable considering how well CR sells..

[linchong84]

Singapore being re-rated by US and China and the whole world.

No natural disasters and sound government made known to the world because of our sinful 2 x IRs.

Real Estate safe haven in the world.

Just heard from a colleague that a friend of hers, bought a landed FH in north for S$1million one year ago and someone wanna buy at close to S$1.9million.

Sounds good.. But our neighbours don't seem to be best buddies with us leh.. Really safe haven meh..

[mr funny]

http://www.straitstimes.com/Money/St...ry_673153.html

May 27, 2011

$191.8m top bid for Sembawang site

Top tender well ahead of market expectations of $154m-$165m range

By Cheryl Lim


SIX developers squared off for a residential site in Sembawang with the top bid coming in at $191.8 million, well ahead of market expectations.

The site at the corner of Sembawang Road and Jalan Sendudok is near Sembawang Shopping Centre and Sembawang MRT station - key attractions for developers and home buyers.

Hao Yuan Investments, controlled by Singaporean permanent resident Du Zhen Zeng, lodged the top bid, which equates to $460 per sq ft per plot ratio. Little is known about Mr Du, who lives in a bungalow at Sentosa Cove.

Analysts had predicted the top bid would fall somewhere between $154 million and $165 million.

A joint venture between Fragrance Group and Aspial Corporation was second on $172.6 million. Hong Leong Group, a team of Frasers Centrepoint and Far East Organization, Hoi Hup Realty in league with Sunway Developments and Allgreen Properties were also in the running.

The 99-year leasehold site is on 297,789 sq ft and can be built up to a maximum gross floor area of 416,908 sq ft, yielding about 390 units.

Analysts estimate the breakeven cost could hover around $800 psf with average selling prices at $900 psf.

CBRE research director Li Hiaw Ho said: 'The confidence in this site could be attributed to the good response to Canberra Residences and more recently, Eight Courtyards at Yishun Avenue 2.'

Canberra Residences, which is closer to Sembawang MRT station than the Jalan Sududok site, has sold about 85 per cent of its 320 units at an average of $830 psf. The nearby Eight Courtyards has moved 75 per cent of its 654 units since its April launch, with prices averaging $800 psf.

Private home sales were robust last month, rising 29 per cent from March to a five-month high of 1,788 units.

Credo Real Estate's head of research and consultancy, Mr Ong Teck Hui, said the figures point towards healthy demand, especially in the suburbs. This segment has become more active with recent launches like Hedges Park Condominium, Foresque Residences and Terrasse.

'The tender response also shows the market is not too concerned about the impending upward revision in the HDB income ceiling,' he said. '(Developers) probably feel that any impact on the private market... would be manageable.'

[email protected]

[rattydrama]

canberra residences' land bid was around 380-400psf right? This one is nearer to sembawang shopping centre and time gap around 1 year liao, so naturally bid will be higher than CR and launch price will be higher too.. Nothing surprising at all.. in fact i had thought it will be nearer to 500, maybe around 480.. 460psf is definitely reasonable considering how well CR sells..

they can bid high but cut on development cost to 200psf, so their breakeven cost is 660psf .....remember developer china, main con china.

at least some other projects, developer FEO or MCL, chip eng seng or NTUC choice home, main con china .....still have some protection. imho....when price is high, make sure we dont be short change by the quality.

[hyenergix]

Many HDBs built by China Construction have poor quality materials and cannot last 2 years.

[linchong84]

Many HDBs built by China Construction have poor quality materials and cannot last 2 years.

to be fair, local companies aren't that fantastic as well.. owners of an expensive DBSS that TOPed recently complain that the paint that the developer chose was lousier than BTOs paint.. End up created all sort of bubbles on the wall..

[ysyap]

Many HDBs built by China Construction have poor quality materials and cannot last 2 years.

What do you mean by cannot stand 2 years? Aren't they all still standing? You referring to cracks?

[hyenergix]

What do you mean by cannot stand 2 years? Aren't they all still standing? You referring to cracks?

Taps have to be replaced, windows cannot close properly, cement in public area not spread properly, lift buttons difficult to press to activate the doors e.g.

[rattydrama]

paint should be under approved list, I guess should be the applicator and the work methods which is below standard n cows not doing their work.

[ysyap]

This is miserable. After one failed project, does HDB re-employ them for subsequent projects? Do residents provide feedback and does HDB listen to them?

[solsys]

China cheat singaporeans money in STI, finish cheating already with S-chips, now come and cheat Singaporeans in property.

Don't buy don't buy, better support Singapore developer's project. Let their own China Chinese buy their own kind.

[fclim]

they can bid high but cut on development cost to 200psf, so their breakeven cost is 660psf .....remember developer china, main con china.

at least some other projects, developer FEO or MCL, chip eng seng or NTUC choice home, main con china .....still have some protection. imho....when price is high, make sure we dont be short change by the quality.

I think it is quite challenging to keep construction costs down going forward. Don't forget this is Singapore's business environment. The reasons are:

1. Worker's levy will increase. Construction companies are expected to pay on average, $320 more per worker from now till July 2013.
2. Costs of Construction materials are all expected to go up. Cement, Steel (up 16% since Jan 2010 to $835 per ton), Ready-mix concrete and granite (up 4% q-o-q since 2Q 2010 to $20 per ton).
3. Singapore imports some 47% of our cement from Japan. With the reconstruction work after the earthquake, cement supply is going to hit us and this will result in higher prices.
4. Increase in supply of public and private residential housing in next two years will compete for resources thereby driving up prices.
5. Public infrastructure projects such as $2billion sports hub, new MRT lines and $8billion North South E'way will all compete for materials and resources thereby driving up prices.
6. Relatively unknown developer in Singapore and thereby does not enjoy economies of scale or higher bargaining power.

[sleek]

URA awards tender for residential site to Hao Yuan Investment
By Jonathan Peeris | Posted: 30 May 2011 1928 hrs

SINGAPORE: The Urban Redevelopment Authority has awarded the tender for a residential site at Sembawang Road and Jalan Sendudok to Hao Yuan Investment.

The company submitted the highest bid of nearly S$192 million.

That translates to about S$4,952 per square metre.

The plot has a site area of almost 28,000 square metres, and a maximum gross floor area of almost 39,000 square metres.

The tender for the residential site was launched on March 29 and closed on May 26.

The land parcel was offered for sale on a 99-year lease.

- CNA/cc

[ysyap]

URA awards tender for residential site to Hao Yuan Investment
By Jonathan Peeris | Posted: 30 May 2011 1928 hrs

SINGAPORE: The Urban Redevelopment Authority has awarded the tender for a residential site at Sembawang Road and Jalan Sendudok to Hao Yuan Investment.

The company submitted the highest bid of nearly S$192 million.

That translates to about S$4,952 per square metre.

The plot has a site area of almost 28,000 square metres, and a maximum gross floor area of almost 39,000 square metres.

The tender for the residential site was launched on March 29 and closed on May 26.

The land parcel was offered for sale on a 99-year lease.

- CNA/cc

No news... Everybody already knew it when it was announced who bidded highest. Don't remember URA awarding the tender to a 2nd or 3rd highest bidder... non-existent!