Sengkang EC site draws top bid of $135m from CDL

[reporter2]

http://www.straitstimes.com/premium/...m-cdl-20121109

Sengkang EC site draws top bid of $135m from CDL

Published on Nov 09, 2012

By Esther Teo, Property Reporter


AN EXECUTIVE condominium (EC) site in Sengkang has attracted a top bid of $135 million in a six-way tussle as developers continue to show faith in EC popularity.

At least two more EC launches are expected by year-end.

City Developments' (CDL) Verspring Properties topped the table for the 14,100 sq m site at the junction of Sengkang West Way and Fernvale Link with a $296.50 per sq ft (psf) per plot ratio (ppr) bid.

It pipped JBE Development's $134.9 million bid - or $296.20 psf ppr - by just a whisker.

Other bidders include Chip Eng Seng unit CEL Property, a joint bid by Capital Development and ZACD Investments, and Frasers Centrepoint unit FCL Place, which lodged the lowest bid of $120.7 million, or $265 psf ppr.

Experts say the healthy level of interest in the site shows that developers are confident that demand for ECs will be robust.

Dennis Wee Group's senior manager of training, research and consultancy, Mr Lee Sze Teck, said the top bid is similar to that for an EC site on Fernvale Lane, which was sold to Peak Living for $296 psf ppr in April this year.

Home buyers will enjoy amenities such as the upcoming Seletar Mall by the time the EC development is completed, he noted.

Mr Lee expects the break-even price to fall between $560 and $610 psf, while the estimated selling price is likely to range from $670 to $720 psf.

A CDL spokesman said the firm is familiar with the Sengkang area, having launched H2O Residences next to Layar LRT station last year.

If awarded the site, it will build a high-rise development with an estimated 380 units.

"Given the popularity of ECs in Singapore and its convenient access to the nearby LRT station, we expect this development to be well received," he added.

This will be CDL's sixth EC project, after The Florida, Nuovo, The Esparis, Blossom Residences and The Rainforest.

At least two EC projects - one in Tampines Avenue 7 and another in Woodlands Avenue 5 - are expected to be launched by the end of the year as the segment continued to enjoy keen interest from Housing Board (HDB) upgraders.

CityLife @ Tampines will have 514 units and a range of two-, three-, four- and five-bedroom units.

It will offer dual-key units, sky suites and penthouses.

The development is jointly developed by Amara Holdings, Kay Lim Holdings and SingXpress Land.

Hao Yuan Investment's Forestville at the junction of Woodlands Avenue 5 and Woodlands Drive 16 is expected to have 653 units. It will be the first EC to be launched in Woodlands after La Casa in 2005.

ECs combine elements of private and public housing, and often have premium furnishings and facilities. But buyers are subject to HDB rules and monthly household income is capped at $12,000.

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[leesg123]

So cheap?? $296.50 per sq ft
if this land is earmarked for pte condo will be more expensive. the difference could have go its way into national development.

[reporter2]

http://www.businesstimes.com.sg/prem...-site-20121109

Published November 09, 2012

CDL unit top bidder for Sengkang EC site

Site draws 6 bidders with offers of $265 to $296.5 psf ppr

By Felda Chay


CITY Developments' (CDL) unit Verspring Properties has emerged as the top bidder with its $135 million bid for the 99-year-leasehold executive condominium (EC) site at the junction of Sengkang West Way and Fernvale Link.

The site drew six bidders, with Verspring Properties' bid translating into a per square foot per plot ratio (psf ppr) price of $296.50.

CDL's spokeswoman noted that the group is familiar with the Sengkang area, having launched the H2O Residences condo next to Layar LRT Station last year.

"In the event that we are awarded, CDL will explore a high-rise EC development with an estimated 380 units. Given the popularity of ECs in Singapore and its convenient access to the nearby LRT station, we expect this development to be well received," she added.

Verspring Properties' offer is just 0.1 per cent higher than that of the second bidder, JBE Development - whose directors are said to include boutique developer Patrick Lam. Verspring's bid is also close to the $296 psf ppr price that Peak Living - a subsidiary of Kheng Leong Group - paid for an EC site along Fernvale Lane in April this year.

According to Lee Sze Teck, senior manager of training, research and consultancy at real estate agency DWG, the $148,000 difference between the first and second bid is "probably the tightest spread ever seen in tenders for EC sites".

Overall, offers ranged between $265 and $296.5 psf ppr.

Property consultants had expected the site to draw four to eight bidders, at between $270 and $330 psf ppr.

The 151,779.6-sq-ft plot has a maximum gross floor area of about 455,338 sq ft. It is expected to yield 420 homes.

Mr Lee noted that the level of interest in the site was healthy, and showed continued confidence among developers that demand for ECs will be robust.

He believes that the break-even price for Verspring is between $560 and $610 psf, while the estimated selling price is around $670 to $720 psf. SLP International Property Consultants executive director Nicholas Mak estimates the break-even price to be about $590-$610 psf, while the selling price could be $720-$750 psf.

"This is the eighth EC site to be sold by the government this year and the first one where the land price is below $300 psf ppr," said Mr Mak. "This reflects the more cautious mood among developers regarding the EC market in the northeast region due to the large supply of condos and ECs in the pipeline."

Sengkang is expected to see more activity over the next one to two years following the completion of nearby HDB estates, condominium project H20 Residences and facilities, such as the Aerospace Park and The Seletar Mall at Fernvale LRT Station, noted Png Poh Soon, head of research at Knight Frank Singapore, when the site was put up for sale in September.

Then, Mr Png expected five and seven bidders, with an expected winning bid of $295-$310 psf ppr.

Yesterday, DWG's Mr Lee noted that the site is near the Layar LRT Station - which is just a five-minute walk away. It is also within walking distance to primary and secondary schools, the Sengkang Riverside Park, Punggol Reservoir and Sengkang Sports Complex.

"Buyers of units in the development will enjoy all the amenities by the time the EC development is completed," he said.

Existing EC projects in the Sengkang and Punggol areas have sold out, according to CBRE executive director Li Hiaw Ho. They include Austville, Esparina Residence, Prive, Riverparc and Twin Waterfalls.

"A new project, The Topiary (726 units) located at Fernvale Lane, will be launched around December 2012 and another EC project at Punggol Way/Punggol Walk may be launched in Q1 2013," added Mr Li. "It will be timely for the new project on the subject site to be launched in mid-2013."

Should Verspring Properties be awarded the tender, the new project will be CDL Group's sixth EC development - after The Florida, Nuovo, The Esparis, Blossom Residences and The Rainforest.

[kane]

How near is this site to the new fernvale mall?