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Thread: Tanah Merah site pulls in robust bids

  1. #1
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    Default Tanah Merah site pulls in robust bids

    http://www.straitstimes.com/archive/...-bids-20121017

    Tanah Merah site pulls in robust bids

    Strong sales performance of nearby eCO development said to be a factor

    Published on Oct 17, 2012

    By Amanda Tan


    A UNIT of Keppel Land has topped the bids in an aggressive 11-way fight that drove offers for a Tanah Merah site well above market expectations.

    Sherwood Development lodged the top bid of $434.6 million, or about $791 per sq ft per plot ratio (psf ppr) for the 31,882 sq m plot.

    Property experts had tipped the site to cost $550 psf ppr to $700 psf ppr or about $302 million to $384 million.

    Bayfront Land's $405.9 million, or $739 psf ppr, was next while the $275 million from Vantage Properties was the lowest.

    Familiar names were back in fourth - a joint bid of $364.8 million from Far East Orchard, FCL Topaz and Sekisui House.

    The New Upper Changi Road plot is one of two in the area that residents had petitioned the Government to keep undeveloped.

    The other - at the junction of New Upper Changi Road and Bedok South Avenue 3 - is on the reserve list of the Government land sales programme and will need an acceptable minimum bid to trigger the sales process.

    A group of more than 40 Limau Estate residents had earlier failed to stop the plots from being put up for sale to preserve the greenery.

    The Ministry of National Development turned down the appeal.

    The area is near Tanah Merah MRT, East Coast Park, Changi Airport and schools such as Temasek Junior College and Red Swastika School.

    Mr Ong Teck Hui, Jones Lang LaSalle's national director of Singapore research, said: "Bidding was aggressive and way above expectations... the top bidder appears to have put in an extra robust offer to secure the site.

    "The bidders were obviously encouraged by the strong sales performance of (the nearby) eCO when it was launched recently, fetching optimistic prices of $1,089 psf to $1,580 psf."

    Mr Ong added that "there is keen buying interest in the Bedok and Tanah Merah locality, especially for projects near MRT stations".

    ERA Realty key executive officer Eugene Lim said Far East Organization, Frasers Centrepoint Limited and Sekisui House likely placed a joint bid "to protect their land value".

    The three developers are behind the newly-launched eCO in Bedok South Avenue 3.

    Mr Ong said the average selling price for homes on the new site could be at least $1,300 psf, "a shade" higher than eCO's as it is closer to the MRT station.

    Keppel Land called the site "prime" in a statement yesterday and said it plans to develop about 700 homes ranging from 500 sq ft to 1,400 sq ft.

    Mr Augustine Tan, president (Singapore residential) at Keppel Land, said: "Demand for well-located suburban homes remains resilient and we are confident that this new development will garner positive interest."

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  2. #2
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    Default High bid for site next to Tanah Merah MRT

    http://www.businesstimes.com.sg/arch...h-mrt-20121017

    Published October 17, 2012

    High bid for site next to Tanah Merah MRT

    Top offer from KepLand unit sign of developers' bullish sentiment

    By ong chor hao


    A 99-YEAR leasehold residential site along New Upper Changi Road has drawn a higher-than-expected top bid, pointing to a still-bullish sentiment among property developers here.

    The land parcel sitting next to Tanah Merah MRT received 11 bids in all, the Urban Redevelopment Authority (URA) said. The highest offer came from Keppel Land unit Sherwood Development, which bid $434.6 million or $791.42 per square foot per plot ratio (psf ppr).

    This bid was 17 per cent above that for a nearby plot in Tanah Merah Kechil sold to Fragrance Group and World Class Land in August.

    The national director of research and consultancy at Jones Lang LaSalle (JLL) Ong Teck Hui said: "Bidding for the subject site was aggressive and way above expectations." He had forecast the top bid at between $630 and $680 psf ppr; analysts BT spoke to when the site was launched in August had all also predicted offers below $700 psf ppr.

    KepLand's bid sets a record unit land price (on a psf ppr basis) for private, non-landed residential land sold under the Government Land Sales Programme outside the central region, said Chia Siew Chuin, director of research & advisory at Colliers International.

    The previous high of $705 psf ppr was achieved in May by a site in Boon Lay Way, she said.

    KepLand said yesterday it plans to develop about 700 units measuring between 500 sq ft and 1,400 sq ft in one- to four-bedroom configurations when it secures the site.

    Augustine Tan, president (Singapore residential) at KepLand, remarked: "Demand for well-located suburban homes here remains resilient, and we're confident that this new development will garner positive interest from genuine home-buyers and upgraders looking for quality properties in the established and popular Tanah Merah precinct."

    Demand has been strong for projects in the vicinity: The eCO condominium, a short distance away in Bedok South Avenue 3, was the top-selling private residential site last month, with 402 units sold at a median price of $1,283 psf.

    Despite the Government's recent move to cap home-loan tenures, ERA Realty Network's key executive officer Eugene Lim said: "This is a sign developers are still hungry for well-located mass-market plots."

    Analysts are projecting a break-even cost of between $1,150 and $1,250 psf based on KepLand's bid, and expect an average selling price above $1,300 psf.

    The second highest offer in the tender came from Bayfront Land, a tie-up between Fragrance Group and World Class Land. Its bid was $405.9 million, or $739.15 psf ppr. The lowest bid was from Vantage Properties, which offered $275 million, or $500.84 psf ppr.

    Some of the offers were defensive, noted ERA's Mr Lim. The fourth highest bid, for example, came from a joint venture between Far East Organization, Frasers Centrepoint and Sekisui House, the same developers behind eCO.

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