West Coast site gets $176m bid

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http://www.businesstimes.com.sg/sub/...44598,00.html?

Published June 24, 2011

West Coast site gets $176m bid

By EMILYN YAP


THE top bid for a residential site opposite West Coast Park came in at $175.78 million or $461 per square foot per plot ratio (psf ppr) yesterday, falling below market expectations.

When the government launched the tender for the 99-year leasehold site at West Coast Link/West Coast Crescent in early May, consultants predicted a top bid of $495-530 or even $560-580 psf ppr.

While the tender did not stir things up on the price front, it did garner considerable interest with 12 developers gunning for the site. And there was a close fight among the top few bidders. Far East Organization submitted the highest bid - just 1.1 per cent above Centurion RE's offer of $456 psf ppr.

A tie-up between Hong Leong Holdings and City Developments followed with a bid of $450 psf ppr. Other participants included MCL Land, Allgreen Properties and Tuan Sing Holdings.

Analysts are divided over what the tender results hold for the property market. Colliers International research and advisory director Chia Siew Chuin believes that developers expect prices to soften. Her estimates put the breakeven cost at $800-840 psf and the average selling price at $900-940 psf, but projects in the area are selling for more, she said. At The Vision next door, for instance, a unit went for $1,106 psf in May.

Savills Singapore research and consultancy associate director Alan Cheong has a different take. Far East's bid would reap a profit margin of about 27 per cent if units can be sold at current prices, he said. 'This means that the developer needs to sell only about 73 per cent of the net saleable area to break even.'

Credo Real Estate executive director Ong Teck Hui noted that interest in the West Coast site was 'definitely keen', but bids were 'measured and not excessive'. He cited the site's amenities and sea view as attractions.

'Developers could have become more selective,' he said. 'Mediocre sites could see a low interest level with subdued bids while more attractive sites are able to generate stronger participation with moderate bidding,' he said, projecting a breakeven cost of around $850 psf and an average selling price of around $1,000 psf.

Far East development and planning executive director Chng Kiong Huat said that there are plans for a project comprising one tower of service apartments, a second tower of one to four-bedroom apartments, and possibly some townhouses.

Far East owns and operates a service apartment project nearby which has seen consistently high demand, he said. 'We see a need for a service residence in this area to serve the expatriates and transient business visitors working on Jurong Island, in Jurong Port as well as in the science and technology corridor in one-north, Singapore Science Park and renowned tertiary institutions in the vicinity.'

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http://www.straitstimes.com/Money/St...ry_683339.html

Jun 24, 2011

Moderate bids for Clementi residential site


A CROWDED field of 12 developers lined up for a residential site in Clementi but their moderate offers suggest an air of caution has entered the mix.

Far East Organization topped the tender with a bid of $175.8 million - or $461 per sq ft (psf) per plot ratio (ppr).

This was 1 per cent higher than second-placed Centurion Re's $173.9 million bid but still below market expectations of up to $220 million. Other bidders included Chip Eng Seng, MCL Land, EL Development and Allgreen Properties.

Mr Ong Teck Hui, Credo Real Estate's head of research and consultancy, noted that while interest was keen with 12 bidders - more than the three to four bids in recent tenders - bid prices were not excessive.

'The (bids) for this site and the Flora Drive site suggest that developers could have become more selective,' he said.

'Mediocre sites could see low interest level with subdued bids while more attractive sites are able to generate stronger participation with moderate bidding.'

CB Richard Ellis Research executive director Li Hiaw Ho had estimated bids of between $214 million and $221 million - or $560 to $580 psf ppr - for the land at the junction of West Coast Link and West Coast Crescent.

This is the second residential site tender to close after the Government announced a bumper release of land.

The Flora Drive residential site tender in Upper Changi closed last week with three bids and at the lowest unit price since last November.

Some experts say that the bids for both sites indicate that developers expect prices to soften.

Colliers International's director of research and advisory, Ms Chia Siew Chuin, said the Clementi project is likely to break even at about $800 psf to $840 psf and sell for up to $940 psf.

This would be lower than prices achieved at nearby 99-year leasehold projects. Caveats lodged last month show that a unit at The Vision sold at $1,106 psf while those at Blue Horizon were transacted at an average of $970 psf, she said.

Mr Chng Kiong Huat, Far East's executive director of development and planning, said the proposed development will consist of one tower of serviced apartments, a second tower of one- to four-bedroom units and possibly some townhouses.

ESTHER TEO

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http://www.businesstimes.com.sg/sub/...91140,00.html?

June 28, 2011, 5.35 pm (Singapore time)

Boo Han Holdings awarded URA tender

By CARINE LEE


The Urban Redevelopment Authority of Singapore announced on Tuesday that it has awarded the tender for the residential site at West Coast Link and West Coast Cresent to Boo Han Holdings Pte Ltd.

Boo Han won the 12,662.7 square metre site for S$175.777 million or S$4,957.61 per square metre.

Tender for the 99-year leasehold land parcel was launched on May 5, 2011 and closed on June 23, 2011.