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Thread: Tampines site draws top bid of $417.86 psf ppr

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    Default Tampines site draws top bid of $417.86 psf ppr

    http://www.businesstimes.com.sg/arch...-41786-psf-ppr

    Published May 18, 2012

    Tampines site draws top bid of $417.86 psf ppr

    Tender muted, with just 3 bidders; highest 2 offers are 4.4% apart

    By Kalpana Rashiwala


    THE Urban Redevelopment Authority's tender for a 99-year leasehold condo plot at Tampines Avenue 10 yesterday fetched three bids, with the highest at $417.86 per square foot per plot ratio (psf ppr), or $252.78 million.

    The top bid - from a tie-up between Far East Organization, Frasers Centrepoint and Japan's Sekisui House - was 4.4 per cent more than the $242.1 million or $400.21 psf ppr offer from EL Development. The only other bidder, City Developments's White Haven Properties, offered $172.9 million or $285.82 psf ppr.

    Analysts polled by BT when the plot was launched in March said that the top bids for the plot would be $350-465 psf ppr. While the top bid at yesterday's tender was within expectations, the tender participation rate was muted, noted property consultants.

    Credo Real Estate executive director Ong Teck Hui said: "The factors affecting tender response could be that the site is less centrally located within Tampines and also the presence of a reserve-list site next door.

    "Those interested would have considered the possibility of the reserve site being triggered and sold which would pose competition to the subject parcel."

    Colliers International director of research and advisory Chia Siew Chuin added that the site was not within walking distance to the Tampines Regional Centre or any MRT station, although it is near Bedok Reservoir Park and Temasek Polytechnic.

    Frasers Centrepoint said yesterday: "The partners will develop a condominium comprising 670 units spread over eight 15-storey blocks."

    CBRE executive director Li Hiaw Ho estimated that based on the top bid, a new project on the site would break even at about $800-820 psf and is likely to be priced at around $900 psf on average.

    Lee Sze Teck, senior manager (research and consultancy) at Dennis Wee Goup, said that the breakeven cost could be around $800-850 psf and the average selling price around $950-1,000 psf.

    According to Credo's analysis of caveats information, units at Waterview condo, opposite the plot tendered yesterday, have sold at an average price of $879 psf so far this year. Sim Lian is developing the project on a site that it clinched at a state tender in March 2010 for $421 psf ppr.

    The top bid at yesterday's tender will result in the fourth collaboration between Far East, Frasers Centrepoint and Sekisui House - after Boathouse Residences in Hougang, Watertown in Punggol and a plot at Bedok South Avenue 3.

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    http://www.straitstimes.com/Money/St...ry_800175.html

    Tampines condo site attracts just three bids from developers

    Published on May 18, 2012

    By AMANDA TAN


    A TENDER for a private condominium site in Tampines, set to yield about 600 homes, has attracted only three bidders.

    Consultants say this might reflect some wariness among developers over a neighbouring site that could go on the market, presenting competition to this site, among other factors.

    Still, despite the low number of bidders, the top bid for the Tampines Avenue 10 site fell within consultants' expectations at around $418 per sq ft per plot ratio (psf ppr).

    A bid for $252.8 million was put in by a consortium consisting of F.E. Lakeside, a unit of Far East Organization, FCL Topaz, a unit of Frasers Centrepoint, and Sekisui House.

    Another competitive bid came from EL Development, offering $242.1 million, or about $400 psf ppr. The third bidder, White Haven Properties, put in a bid that was quite a bit lower at $172.9 million, or about $286 psf ppr.

    The tender for the plot closed yesterday.

    The 99-year leasehold site has a maximum permissible gross floor area of 56,200 sq m. Developers are also allowed to build serviced apartments there.

    Earlier, property experts had expected the site to draw in bids ranging from $350 to $465 psf ppr. But it was also noted that the bid levels could be affected by the neighbouring plot on the reserve list, which could be triggered for tender eventually.

    Credo Real Estate executive director Ong Teck Hui said: 'This means more units at the same location will be offered to buyers.'

    He added that the muted bidding is likely due to the drawbacks of the site - which is not centrally located - and not because developers are being cautious of the market as a whole.

    In fact, bids for the latest tender may be an indication that developers feel that demand for homes in the area is healthy, said Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Group.

    He cited an adjacent site, Waterview, which in March 2010 attracted eight bidders and a top bid of $421 psf ppr.

    'Despite not having a reservoir view, the Tampines site still attracted a top bid which is similar to Waterview's,' he said.

    Mr Lee pointed out the merits of the plot: It is near Bedok Reservoir Park and schools in the area, and is located in Tampines - a mature housing estate.

    As for the new development, he said prices could be between $950 psf and $1,000 psf, given that the breakeven cost may fall between $800 and $850 psf.

    A spokesman for the consortium with the top bid said the site is close to the future Tampines West MRT station, amenities and schools. 'The partners will develop a condominium comprising 670 units spread over eight 15-storey blocks.'

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