Results 1 to 2 of 2

Thread: 'Bullish' top bid from CDL/ Hong Leong

  1. #1
    Join Date
    Oct 2011
    Posts
    10,829

    Default 'Bullish' top bid from CDL/ Hong Leong

    http://www.businesstimes.com.sg/arch...leong-20120907

    Published September 07, 2012

    'Bullish' top bid from CDL/ Hong Leong

    Duo's $793 psf ppr price for mixed-use Potong Pasir site beats expectations

    By Kalpana Rashiwala


    [SINGAPORE] A tie-up between City Developments Ltd (CDL) and Hong Leong Holdings yesterday placed the top bid of $245 million or $793.02 per square foot per plot ratio (psf ppr) for a 99-year-leasehold mixed-use site near Potong Pasir MRT Station.

    The bid exceeded market expectations and it was also about $24.4 million, or 11 per cent, higher than second highest offer of $714.10 psf ppr from Chip Eng Seng's unit CEL Property

    The state tender drew eight bids, which analysts say attests to the popularity of residential projects with a commercial component.

    CDL said last night its proposed scheme is for a residential development of up to 19 storeys, with around 28 commercial units on the ground floor. Some of the commercial units could be released for sale.

    The authorities have stipulated a maximum commercial quantum of 2,000 square metres (about 21,528 square feet) gross floor area (GFA) on the ground floor, which can be carved into no more than 28 units, translating to an average unit size of about 71.43 sq m (nearly 769 sq ft). Also stipulated is a maximum 267 residential units, reflecting an average unit size of 100 sq m. The caps on the number of residences and commercial units are to ensure that the traffic generated from the project can be supported by the area's current road capacity.

    Based on the CDL/Hong Leong's top bid, DWG senior manager Lee Sze Teck estimates the breakeven cost at $1,250-$1,300 psf and selling price for the apartments at $1,450-

    $1,500 psf. "The retail component could be sold on a strata basis for around $4,000-4,500 psf," he added.

    SLP International executive director Nicholas Mak too said the apartments could be launched at above $1,450 psf, which could set a new benchmark price for 99-year apartments in the vicinity. He said that recent average transacted prices of Nin Residence nearby (next to Potong Pasir Station) and Eight Riversuites (near Boon Keng Station) are $1,205 psf and $1,338 psf respectively.

    Some market watchers consider CDL/Hong Leong's top bid "bullish". In July, property consultants predicted winning bids of $580-$750 psf ppr for the site.

    Jones Lang LaSalle's national director of Singapore research Ong Teck Hui said: "The top bid at $793 psf ppr is above expectations and reflects the keen demand for residential sites with commercial amenities. This has also been the case with mixed-use collective sale sites, some of which have also fetched higher-than-expected prices. Mixed-use projects have been doing well in their sales launches, achieving optimistic prices and rapid take-up. Recent examples include The Hillier, Watertown and Bedok Residences."

    Nevertheless, Mr Ong considers the top bid "optimistic", especially considering some limiting sales conditions - such as the 2,000 sq m cap on commercial GFA, just 7 per cent of the project's maximum GFA; and the 100-sq-m average residential unit size. "With limitations on the quantum of commercial space and the number of small residential units that can be carved out in this project, value enhancement by these would be constrained to some extent. Perhaps the value enhancement comes more from the premium that some home buyers would pay for a project with commercial amenities."

    CDL's spokeswoman noted that "demand for homes near MRT stations, in particular those integrated with commercial/retail components, continues to be robust".

    "Given this, along with the ongoing transformation of the area around Potong Pasir MRT station into a private residential enclave, we expect this development to be highly sought after," she said.

    CDL and Hong Leong Holdings are familiar with the vicinity, being partners (in addition to TID) for the 702-unit Bartley Residences, she added.

    At yesterday's tender, a Frasers Centrepoint-Maxdin tie-up bid $706.01 psf ppr; Far East Organization's Boo Han Holdings partnered Far East Orchard for a $656.35 psf ppr bid; Santarli Venture partnered SL (Serangoon) ($650.76 psf ppr). SL (Serangoon) is controlled by Douglas Ong Pang Chye.

    Another bidder was Vantage Properties, owned by Lim Kim Hong and Lim Huixing ($624.06 psf ppr). Trident Assets, whose shareholders are Victor Soh's Pinnacle Assets, architect Chee Hsian Sing and Melvin Poh, offered $588.45 psf ppr. The lowest bid of $558.93 psf ppr was from a partnership between Evia Real Estate (3) and Ho Lee Group.

  2. #2
    Join Date
    Jun 2011
    Posts
    6,134

    Default

    up up and away

Similar Threads

  1. Replies: 2
    -: 26-06-20, 16:03
  2. Boulevard 88 (D10, Freehold, CDL/Hong Leong)
    By reporter2 in forum District 10
    Replies: 2
    -: 11-06-19, 14:08
  3. Replies: 867
    -: 24-11-14, 13:52
  4. Aalto (D15, Freehold, Hong Leong)
    By Makelele in forum District 15
    Replies: 79
    -: 14-09-13, 17:14
  5. NEWest @ Hong Leong Garden
    By Property-NewLaunch in forum District 5
    Replies: 0
    -: 15-04-13, 11:52

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •