Upper Serangoon EC site attracts 7 bids

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http://www.businesstimes.com.sg/sub/...18340,00.html?

Published March 2, 2012

Upper Serangoon EC site attracts 7 bids

Top bid is $303 psf ppr; consultants note interest in ECs remains high

By MINDY TAN


INTEREST in executive condominiums (ECs) remains high, based on the latest tender results for a 99-year EC site at Upper Serangoon View/Upper Serangoon Road, say consultants.

The site, which has a land area of some 133,388.4 square feet (sq ft) and plot ratio of 3.5, secured a top bid of $303 per square foot per plot ratio (psf ppr) yesterday, beating six other bids. The site is expected to yield about 435 units.

'The optimism could be due to the absence of EC tenders for more than four months while new EC launches continue enjoying steady demand from buyers,' said Credo Real Estate executive director Ong Teck Hui, who noted that at $303 psf ppr, the bid exceeds the top bids of the last three EC tenders for comparable sites.

Lee Sze Teck, senior manager at DWG Research and Consultancy, agreed: 'The level of interest shows that developers think that the EC market is still robust.'

The top bid, put in by Ho Lee Group and Evia Real Estate Management, beat the second-highest bid of $283 psf ppr put in by EL Development.

Li Hiaw Ho, executive director of CBRE Research, expects a break-even cost of around $650 psf, with the new project likely priced around $700 psf.

DWG's Mr Lee said: 'All three top bidders are companies in the construction trade, hence they will be able to manage the construction costs. The estimated break-even cost is between $550 and $600 psf. The estimated selling price is between $670 and $720 psf, which is similar to Twin Waterfalls.'

The third highest bid came from Peak Living, a unit of Kheng Leong, at $257.8 psf ppr.

Other developers who bid for the site included Mezzo Development, Qingjian Realty (South Pacific) Group, and Elitist Development. Frasers Centrepoint offered the lowest bid of $200 psf ppr.

Assuming the top bidder is awarded the site, it will be Ho Lee Group's second EC site acquired within a span of five months. The last was at Pasir Ris Drive 3/Pasir Ris Link, at $291 psf ppr, in October 2011, said DWG's Mr Lee.

In the previous tender, the top bid was put forth from a tie-up between Ho Lee Group and Maxdin. The latter is a subsidiary of UE E&C Ltd, which in turn is part of the United Engineers Group.

A project of some 400 units of various sizes is planned for the site. It is expected to be launched towards late March this year.

Interest in EC sites has been keener since the income ceiling for ECs was raised in August last year, reflecting developers' confidence of sustained demand from a bigger pool of eligible buyers, said Credo's Mr Ong. The income ceiling for ECs was raised from $10,000 to $12,000 last year.

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http://www.straitstimes.com/Money/St...ry_772788.html

Top bid of $141.5m for Upper Serangoon site

Published on Mar 2, 2012

By Gan Yu Jia


AN EXECUTIVE condominium (EC) site in Upper Serangoon View has attracted a top bid of $141.5 million in a seven-way contest that drove prices well above expectations.

The robust bidding for the 133,388 sq ft site reflects the confidence developers have over the EC market, experts said.

The top bid of $303 per sq ft (psf) per plot ratio (ppr) was submitted by a tie-up between Ho Lee Group and Evia Real Estate Management.

Market watchers had tipped a range of $225 to $275 psf ppr.

The top offer was 7 per cent higher than the second-placed bid of $132.1 million, or $283 psf ppr, from EL Development.

Peak Living, a subsidiary of Kheng Leong Group, came in third with $119.1 million or $255 psf ppr.

Other bidders for the site, which can yield an expected 435 units, included Mezzo Development, Qingjian Realty (South Pacific) Group, Elitist Development and Frasers Centrepoint, with the lowest bid of $93.4 million, or $200 psf ppr.

Mr Ong Teck Hui, Credo Estate's head of research and consultancy, said the top bid shows a slight pick-up in EC pricing as it exceeded the top tenders of the last three EC tenders for sites comparable to this one.

'The optimism could be due to the absence of EC tenders for more than four months while new EC launches continue to enjoy steady demand from buyers,' he said.

'That would be an impetus for some developers to try and clinch the site more competitively.'

Mr Lee Sze Teck, senior manager for research and consultancy at DWG Group, noted that the three top bidders were companies in the construction trade so they would be able to manage the building costs.

'The site will be able to enjoy the commercial activities that are provided for in the adjacent BTO (build-to-order) development, Hougang Capeview, and the view of the Serangoon Reservoir,' he added.

Mr Lee expects the units to break even at about $550 to $600 psf, while Mr Li Hiaw Ho, executive director of CB Richard Ellis Research, estimates the figure to be about $650 psf.

Mr Lee said units in the new EC project would likely be priced at between $670 and $720 psf, similar to those at Twin Waterfalls.

Mr Li, who estimates the figure to be around $700 psf, added that the location is likely to attract home buyers as it is a short drive from Hougang Central, Hougang MRT station and the bus interchange.