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Thread: Choice Jervois Rd plot draws 17 bids, topped by SingLand

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    Default Choice Jervois Rd plot draws 17 bids, topped by SingLand

    Top bid values D10 site at $880.74 psf ppr, to be sold at $1,500-1,600 psf

    By KALPANA RASHIWALA



    (SINGAPORE) A plum 99-year leasehold private condo plot at Jervois Road drew a whopping 17 bids yesterday, attesting to the site's choice location and relatively affordable investment size for the site's development.


    The top bid for the District 10 plot that could now be set for about 130 homes was $118.9 million or $880.74 per square foot per plot ratio (psf ppr) from Singapore Land unit SL Development. This was 8.1 per cent higher than the next highest offer of $814.81 psf ppr from Chng Gim Huat Group.

    The 17 bids for the plot next to the Chatsworth Park Good Class Bungalow Area included two identical offers of $101 million or $748.14 psf ppr - from Kheng Leong unit Peak Living and Hong Realty.

    The lowest bid came from JVS Capital at $71.8 million or $531.85 psf ppr.

    There had been a wide variation of forecasts on the top bid for the District 10 site from property consultants - ranging from $630 to $950 psf ppr - when the site was launched on Dec 22, two weeks after the government rolled out the additional buyer's stamp duty (ABSD).

    Many analysts used as their reference point the $754 psf ppr top bid by City Developments in December for a plot at Alexandra Road (next to Ascentia Sky condo project, near Redhill MRT Station and about 550 metres from the Jervois Road plot).

    One school of thought places the Jervois plot as superior as it is a prime district 10 plot, next to a GCB Area and near the Malaysian High Commission. However, others reason that the Alexandra site, though in district 3, may have an advantage as it is closer to an MRT station and amenities.

    Donald Han, special advisor at HSR Property Group, said: 'Despite 17 bids, the top price was below my expectation of $950 psf ppr. Developers are factoring in the risks created by the five-year limit to develop and sell all units in the project if they don't want to pay the 10 per cent ABSD. As well, interest has thinned from foreign buyers, who have to pay 10 per cent ABSD,' he added.

    Michael Ng, group general manager of Singapore Land and its parent UIC, said yesterday: 'Our beakeven cost would be about $1,300 psf and we would aim to sell at around $1,500-1,600 psf on average. This would be fairly reasonable for a condo in the Jervois/Bishopsgate locale near embassies.

    'This site is next to a cul de sac and is set amidst lush greenery and mature trees.' The project may be launched by year end.

    He added that SingLand has been on the lookout for choice residential sites but such plots in prime districts are hard to come by at reasonable prices. 'Most of them are collective sale sites which would generally be priced at $1,500 psf ppr and upwards.'

    SingLand's proposed scheme on the Jervois plot is a five-storey project of about 130-140 units - comprising mostly one and two-bedroom apartments along with some three bedders. 'We'll also include about seven to eight strata terrace houses - probably three storeys high with a basement. We can build these landed units on the triangular end of this site, which will leave a more regular-shaped plot for the apartments,' said Mr Ng.

    Commenting on the strong turnout of 17 bidders at yesterday's tender, Credo Real Estate executive director Ong Teck Hui said: 'The prime residential market may be struggling but there's obviously no shortage of interest when an attractive prime district site is put on the market. Enthusiasm in this tender rivals that for the Bishan Street 14 site which attracted 19 bidders and a top bid of $869 psf ppr a year ago.'

    Adding to the site's appeal is its manageable size, as reflected in the $118.9 million top bid, making it a relatively less risky project than the typical large Government Land Sale sites, he added.

    CBRE executive director Li Hiaw Ho noted that based on URA sales data for October-December 2011, a small-format unit in Nathan Residences (under construction) was sold at $1,655 psf while units in One Jervois and Sheares Ville (completed in 2003) were sold between $1,450 psf and $1,560 psf. 'These three projects have a freehold tenure. We expect that units on the new 99-year leasehold site should be able to command a premium because of their rarity, and therefore, may be able to fetch $1,600 psf to $1,800 psf when launched.'

    Others who took part in yesterday's tender include Sin Heng Chan unit Strategic Developments, a consortium involving OKP Land, BBR Property, EL Development, Lucrum Development, Lian Beng Group unit Luxe Development and Mezzo Development.

    Source: BT

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    CBRE executive director Li Hiaw Ho noted that based on URA sales data for October-December 2011, a small-format unit in Nathan Residences (under construction) was sold at $1,655 psf while units in One Jervois and Sheares Ville (completed in 2003) were sold between $1,450 psf and $1,560 psf. 'These three projects have a freehold tenure. We expect that units on the new 99-year leasehold site should be able to command a premium because of their rarity, and therefore, may be able to fetch $1,600 psf to $1,800 psf when launched.'
    I don't understand this part. Can gurus pls explain? Thanks

    It's rare because it's new? It's a 99-year LH? It's in District 10?
    Last edited by ecimbew; 03-02-12 at 05:54.
    Yee ha! Did I tickle your funny bone?


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    I'm no guru. I think he means the site is rare. He is not referring to the 99-year lease.

    He added that SingLand has been on the lookout for choice residential sites but such plots in prime districts are hard to come by at reasonable prices. 'Most of them are collective sale sites which would generally be priced at $1,500 psf ppr and upwards.'


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    I am no guru either.

    But it doesnt take a guru to realise that he is talking nonsense.

    His statement shows that somehow he or his company has vested interest.

    DKSG
    Stay Calm and Cool

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    I am impressed Dtrax woke up at 5 am to post news !

    Kudos!
    DKSG

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    He meant such sites don't often on sale by govt tender. It's not rare if they have the guts to actively en bloc existing developments which would in turn be freehold.

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    CBRE guy doesn't deserve our respect at all.

    "Michael Ng, group general manager of Singapore Land and its parent UIC, said yesterday: 'Our beakeven cost would be about $1,300 psf and we would aim to sell at around $1,500-1,600 psf on average. This would be fairly reasonable for a condo in the Jervois/Bishopsgate locale near embassies."

    yet he says can sell at 1600 to 1800. he is trying to get CBRE to become the sole marketing agent?



    Quote Originally Posted by DKSG
    I am no guru either.

    But it doesnt take a guru to realise that he is talking nonsense.

    His statement shows that somehow he or his company has vested interest.

    DKSG
    Stay Calm and Cool

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    I think they're going to build largely MMs and mini 2 bedders from the press release. So say 500sqft x $1600psf = $800k only and then will sell like hot cakes. Just like nearby the Alexis.

    Quote Originally Posted by bargain hunter
    CBRE guy doesn't deserve our respect at all.

    "Michael Ng, group general manager of Singapore Land and its parent UIC, said yesterday: 'Our beakeven cost would be about $1,300 psf and we would aim to sell at around $1,500-1,600 psf on average. This would be fairly reasonable for a condo in the Jervois/Bishopsgate locale near embassies."

    yet he says can sell at 1600 to 1800. he is trying to get CBRE to become the sole marketing agent?

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    Plot ratio 1.4 only, maximum height allowed is 5 storeys. Should be under the new URA rules on MM units.

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    We expect that units on the new 99-year leasehold site should be able to command a premium because of their rarity.
    I was like "huh?" when I read this and discovered that many of you felt the same.

    If give him the benefit of the doubt, then he may mean:
    We expect that units on the new 99-year leasehold site should be able to command a premium (over other 99LH sites) because of their rarity (of having rich freehold neighbours).

    My friend with a unit in 99LH The Loft is also equally excited about upside of having freehold neighbours, though another friend has his reservation. Mainly boils down to entry price.

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    Cool

    Quote Originally Posted by lifeline
    I was like "huh?" when I read this and discovered that many of you felt the same.

    If give him the benefit of the doubt, then he may mean:
    We expect that units on the new 99-year leasehold site should be able to command a premium (over other 99LH sites) because of their rarity (of having rich freehold neighbours).

    My friend with a unit in 99LH The Loft is also equally excited about upside of having freehold neighbours, though another friend has his reservation. Mainly boils down to entry price.
    think this is going to push up the prices of the neighbouring freehold condo/apartments...

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    Quote Originally Posted by DKSG
    I am impressed Dtrax woke up at 5 am to post news !

    Kudos!
    DKSG
    I still in european timezone after I came b from my trip lol!

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    Hmm quite near to Domain21. Alexendra PCN
    Affordable means small

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    http://www.straitstimes.com/Money/St...ry_762523.html

    Jervois Road site attracts 17 bids

    Published on Feb 3, 2012

    By Cheryl Lim


    A RESIDENTIAL site in swanky district 10 has attracted 17 bids from developers even though sales in the high-end homes market have slowed down.

    Bids for the site in Jervois Road have beat market expectations, with developers apparently undeterred by a tough round of property cooling measures introduced last December.

    The site, which can boast 140 homes, was launched after the measures took effect, dampening high-end demand, especially among foreign buyers who now face a 10 per cent additional buyer's stamp duty.

    The new rules also force developers to complete and sell all units of a project within a five-year period or risk incurring an additional 10 per cent stamp duty.

    Singapore Land put in the top bid for the leasehold site - at $118.9 million, which works out to $881 per sq ft per plot ratio, higher than the $630 to $695 psf ppr range analysts had earlier forecast.

    The 99-year site, measuring 96,423 sq ft, is near the Chatsworth Park good class bungalow area and can be built to a maximum gross floor area of 135,001 sq ft.

    The top bid is bullish, said some property observers, considering the site has a plot ratio of 1.4 and can be built up to an allowable height of only five storeys.

    'The top bid was perhaps encouraged by the strong sales numbers in January which showed that the underlying demand for private residential homes is still robust provided the projects are well-located,' said Mr Lee Sze Teck, senior manager of research and consultancy at DWG Group.

    Mr Nicholas Mak, head of research at SLP International, said the top bidder may have based the bid on the $1,400- $1,500 psf price at nearby condominiums.

    'It's unfair to put them in the same category because the neighbouring projects have other factors like a better view going for them, and can, therefore, achieve a better average price.'

    He added that the odd-shaped site also presents some challenges in the planning of any future development.

    Other property experts were more optimistic, attributing the high interest to the lack of prime sites in the government land sales programme.

    Experts said the last time a state land parcel in districts 9,10 and 11 was put up for sale was in Handy Road in 2007.

    SingLand said if it clinches the site, its project would comprise a mix of about 130 condominium units and several strata houses, targeted at young executives and couples. It would be similar to Archipelago, its joint venture project with the UOL Group at Bedok Reservoir.

    Smaller units at nearby Nathan Residences have been sold at $1,655 psf while units at One Jervois and Sheares Ville went for between $1,450 psf and $1,560 psf. All three have freehold tenure.

    [email protected]

    Additional reporting by Chloe Lo

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