What u all think of this kind of bidding of developers?

[DaytonaSS]

developers never read newspaper? or they super confident of overseas buyer? Basically does this also mean developer got too much cash by the side?


Residential site at Alexandra Road receives 7 bids

Posted by luxuryasiahome ⋅ December 6, 2011 ⋅ Leave a Comment
Filed Under Alexandra Road, Land Sales
The tender for the development of a residential site at Alexandra Road closed on Tuesday with seven bids, the Urban Redevelopment Authority (URA) said.
The top bid of S$396 million was jointly submitted by Sunmaster Holdings, Intrepid Investments and Garden Estates Limited. These are units of City Developments, Hong Leong Group and Hong Realty respectively.
The bid translates to S$8,120.08 per sq m.
Tanglin Land submitted the second highest bid of S$363 million, while Sherwood Development sent the third highest bid of S$339.5 million. The lowest bid of S$318.3 million was handed in by Multi Wealth (Singapore).
While the number of bids was fewer than analysts had expected, the margins between the bid prices were slim. The top bid was only 9.1 per cent and 16.6 per cent higher than the second and third highest bids.
“The keen interest and bidding by the consortium is spurred by the rare availability of an attractive site situated in a convenient and established location at the city fringe area that is generally popular with homebuyers/investors,” said Ms Chia Siew Chuin, Director of Research & Advisory at Colliers International.
Analysts estimate the breakeven price for the site is around S$1,300 psf.
Mr Li Hiaw Ho, Executive Director at CBRE said developers can build a high-rise project of over 40 storeys of some 550 apartments at the 99-year lease site.
Launched on October 17, the property measures 9,952.6 sq m with a maximum permissible gross floor area of 48,768 sq m. It is located near the Redhill MRT station.
URA said it will award the tender after evaluating the bids.
Source : Channel NewsAsia – 6 Dec 2011

[kane]

These developers becoming bullish? I recall CDL has one of the largest land bank anyway. And their bid was 10% higher than the second highest bid. What gives?

[bargain hunter]

as a comparison, ascentia sky's land cost was 639psf ppr in dec 07 vs 754psf for this now. ok lah, 18% premium.

[azeoprop]

At 755psf ppr, not as high as the bishan one(869psf).... Similar price to the Bendeemer site (775psf)
http://www.h88.com.sg/article/Record...r+Bishan+site/
http://www.h88.com.sg/article/Top+bi...+expectations/

But given its location, 755psf ppr is already mellow down a bit liaoz.

[ysyap]

They are unafraid to bid high coz should economy wallow in a low for the next 3 years, they'll just hold back their land and wait patiently for a good time to launch.

[DaytonaSS]

Asential sky selling price is ard $1300psf now. But this one est break-even is $1300. Furthermore it's 99 years, can't hold back long long don't develop. Must build with 5 years or something rule.

The developer seems bullish or got too much cash

[DaytonaSS]

At 755psf ppr, not as high as the bishan one(869psf).... Similar price to the Bendeemer site (775psf)
http://www.h88.com.sg/article/Record...r+Bishan+site/
http://www.h88.com.sg/article/Top+bi...+expectations/

But given its location, 755psf ppr is already mellow down a bit liaoz.

Compare to bishan anything will be cheap! That one is send shock wave down the industry

[phantom_opera]

Looook at hdb resale price at bukit Medan, how not to bid high

[DaytonaSS]

Looook at hdb resale price at bukit Medan, how not to bid high

I m surprised as now 1300 Psf seems an accept "norm" already for a reasonable good location development.

[kane]

Compare to bishan anything will be cheap! That one is send shock wave down the industry

Still waiting for them to launch.

[phantom_opera]

I m surprised as now 1300 Psf seems an accept "norm" already for a reasonable good location development.

But size becomes smaller 2nd 721sqft

[bargain hunter]

u have to look at the size of ascentia sky units. in today's terms, 3 bedder at 14xx sq ft selling at 1300psf complete with planters surrrounding bay windows and balconies. cdl simply has to shrink the 3 bedroom unit to 1200 sq ft and they can sell at 1500psf for the same quantum. if they like, they can even shrink the 3 bedders below 1200 sq ft, just an eg.

Asential sky selling price is ard $1300psf now. But this one est break-even is $1300. Furthermore it's 99 years, can't hold back long long don't develop. Must build with 5 years or something rule.

The developer seems bullish or got too much cash

[ysyap]

Compare to bishan anything will be cheap! That one is send shock wave down the industry

Bishan don't dare to launch now coz come next 2 years if economy turns down, their project will be left dangling for dear life. They adopt the wait and see attitude. If things turn out well, they'll probably launch in 2012. If not, they'll just wait till 2014 or after to launch their much anticipated project.

[2824]

u have to look at the size of ascentia sky units. in today's terms, 3 bedder at 14xx sq ft selling at 1300psf complete with planters surrrounding bay windows and balconies. cdl simply has to shrink the 3 bedroom unit to 1200 sq ft and they can sell at 1500psf for the same quantum. if they like, they can even shrink the 3 bedders below 1200 sq ft, just an eg.

Ascentia sky also don't have 1 bedder so cdl can have a good % of 1 bedder in this development.

[bargain hunter]

yeah. there are a lot of things cdl can do to boost the psf and still maintain the quantum similar or even less than ascentia sky.

Ascentia sky also don't have 1 bedder so cdl can have a good % of 1 bedder in this development.

[land118]

I m surprised as now 1300 Psf seems an accept "norm" already for a reasonable good location development.

Punggol, SengKang condo already 1k psf, 1.3k psf for Alexander is quite ok, if we compare like that.

Anyway, Developers didn't hear Mr B shouting & wailing...

[hyenergix]

Bishan don't dare to launch now coz come next 2 years if economy turns down, their project will be left dangling for dear life. They adopt the wait and see attitude. If things turn out well, they'll probably launch in 2012. If not, they'll just wait till 2014 or after to launch their much anticipated project.

The big showflat (2-storey?) in Bishan is under construction. I expect the launch to be in Feb 2012. It should be quite hot due to the MRT, shopping mall, food center and good schools there, plus the pent-up demand in that area of course.

[phantom_opera]

Bishan if launched, same as D Leedon psf ....interesting to see which one can sell, one in CCR, one in RCR yet D Leedon not moving at all .... Bedok Residences @ 1350psf can sell like hot cakes, strange world

[Laguna]

The land cost is $700+ psf ppr
how can the breakeven cost of $1300 psf
it is too high

[radha08]

one thing for sure developers never listen to mr b....

[devilplate]

Asential sky selling price is ard $1300psf now. But this one est break-even is $1300. Furthermore it's 99 years, can't hold back long long don't develop. Must build with 5 years or something rule.

The developer seems bullish or got too much cash

actually breakeven 1300psf so high meh?

more like 750+450(at most and dun forgot got free 10% balcony GFA)=1200psf den eventually sell for 1400-1500psf....achievable if cut all unit sizes to 4xxsqft 1bdr, 7xxsqft 2bdr, 9xxsqft 3bdr and 1100sqft 4bdr

[august]

Bishan don't dare to launch now coz come next 2 years if economy turns down, their project will be left dangling for dear life. They adopt the wait and see attitude. If things turn out well, they'll probably launch in 2012. If not, they'll just wait till 2014 or after to launch their much anticipated project.

capitaland already said months ago they are launching it next year.

[devilplate]

I m surprised as now 1300 Psf seems an accept "norm" already for a reasonable good location development.

y r u surprised if u hf been monitoring the market?

[devilplate]

u have to look at the size of ascentia sky units. in today's terms, 3 bedder at 14xx sq ft selling at 1300psf complete with planters surrrounding bay windows and balconies. cdl simply has to shrink the 3 bedroom unit to 1200 sq ft and they can sell at 1500psf for the same quantum. if they like, they can even shrink the 3 bedders below 1200 sq ft, just an eg.

cfm shrink to 9xx-10xxsqft

palette 3bdr abt 1100sqft 3bdr but comes wif baywindows

[devilplate]

Bishan don't dare to launch now coz come next 2 years if economy turns down, their project will be left dangling for dear life. They adopt the wait and see attitude. If things turn out well, they'll probably launch in 2012. If not, they'll just wait till 2014 or after to launch their much anticipated project.

project must TOP within 5yrs

but yes they can build and only start selling upon TOP if they got the $$$$

[devilplate]

The big showflat (2-storey?) in Bishan is under construction. I expect the launch to be in Feb 2012. It should be quite hot due to the MRT, shopping mall, food center and good schools there, plus the pent-up demand in that area of course.

i seriously doubt it will be hot if really launched at 14xxpsf average

lets see.......

[devilplate]

Bishan if launched, same as D Leedon psf ....interesting to see which one can sell, one in CCR, one in RCR yet D Leedon not moving at all .... Bedok Residences @ 1350psf can sell like hot cakes, strange world

pls visit dleedon showflat again la....den u will get the complete picture

[ysyap]

The big showflat (2-storey?) in Bishan is under construction. I expect the launch to be in Feb 2012. It should be quite hot due to the MRT, shopping mall, food center and good schools there, plus the pent-up demand in that area of course.

Interesting to watch how this project will be launched! Too much volatility in market but then again Singapore is deemed as the best place in the world for investment so maybe the developer will test water of some sort. Maybe just launch phase 1 and see how!

[devilplate]

one thing for sure developers never listen to mr b....

different level

basic is from the very basic beginning

how to compare average joe wif rich developers?

its obvious y basic is so panicky and desperate.....been toking to himself wif all his headliners....LOL

[ysyap]

different level

basic is from the very basic beginning

how to compare average joe wif rich developers?

its obvious y basic is so panicky and desperate.....been toking to himself wif all his headliners....LOL

Yup.. this guy is strange.. even on holiday, he's doing all these discussions...