EC site in Jurong area attracts record 16 bids

[rymccondo77]

ECs are going to get more and more expensive!

http://www.channelnewsasia.com/news/...rd/760986.html

[xebay11]

Hmm the developers must have read Ringo's posts? Yet so many two bit investors (read fellow forummers here) still in denial on the potential of the West.

[Tan80000]

ECs are going to get more and more expensive!

http://www.channelnewsasia.com/news/...rd/760986.html

Seem like EC is inching toward S$1000psf soon...

[wirehtc]

$8xx psf for ECs will start to become e norm next year. New pte condos will be all over $1000 psf next year. ECs will be v hot.

[MM Lovers]

Seem like EC is inching toward S$1000psf soon...

Yes, agreed. It will definitely happen. Just like HDB resale flat that crossed over $1 million. Nobody will believe it 10 years ago.

[kane]

400+psf ppr was the bids for pc land a few years ago.

[smellyfish]

as chuck prince famously said (before the 2008 crash), if the music is playing, you just have to get up and dance

[Ringo33]

developers is well aware of the potential for this plot of land as this is a unique site which offer unblock lake view over looking the golf course and jurong gateway.

And the big bang will comes when the announcement of the mega theme park right across the road.

[mermaid]

ECs are going to get more and more expensive!

http://www.channelnewsasia.com/news/...rd/760986.html

they r bidding for a price which can only be sold in 15 mths' time.

[hyenergix]

ECs will become more compact.

[mermaid]

ECs will become more compact.

ec might even intro 1 bedder shoebox

[VS]

they r bidding for a price which can only be sold in 15 mths' time.

good, so it means that within next 15 months, the Singapore property market should not drop.

[mcmlxxvi]

Eh..... why I hear people shouting crash? LOL

[mermaid]

good, so it means that within next 15 months, the Singapore property market should not drop.

economically speaking, I do not foresee a crash since our fundamentals is not bad, our trunks & branches can still tahan should the leaves dropped. but a crash cause by haze/HxNx .... will be hard to say liao lor

[LG168]

Taman Jurong Area, last time not popular. Many foreigner, near industry area at International road about few hundred meter away, far from MRT station, last time I alway go there, infornt is Jurong Calvary Church. across the coporation Drive is 21st storey HDB(blk 63,64.65.66) rental flat. Im very surprise that area bid above $418/= for EC project. Lake view face Yuan Ching Road / face fair way club . Square Project land , I think facing lake view unit limited(12.5%), HDB view(25%), Sec School View(12.5%), Pool view(50%).ok lah if the design not bad and sell below 800psf(not possible right), may be more then 900psf.

[LG168]

which mean property price at OCR 再马不停蹄向上爬起来了。 发！

[oops]

[SINGAPORE] An all-time record price for executive condominium land has been set for a plot in Jurong, an area which has been starved of new EC supply. Located near Jurong Country Club, the 99-year leasehold plot received a top bid of $418.53 per square foot per plot ratio (psf ppr) amid strong participation from 16 bidders. The buzz in the location, following strong sales at J Gateway condo last month, also contributed to the strong demand for the EC plot.However, two other EC sites - both in Punggol - whose tenders also closed yesterday in a bid by the authorities to rein in bullish bids for EC land - fetched top bids of about $355 psf ppr and $356 psf ppr, just a shade above the $351 psf ppr that a plot at Punggol Field Walk/Punggol East drew in December. Analysts said this was probably because developers were mindful of a possible saturation of EC and 99-year private condo projects in the Punggol/Sengkang location.ECs are a public-private housing hybrid with initial buyer eligibility and resale restrictions which are completely lifted 10 years after the completion of an EC project.Some analysts said the government's attempt to have simultaneous tender closings for three EC sites does not seem to have had its desired impact of tempering tender bids, while others suggest it may be too early to declare the experiment a failure.Besides the scarcity of new EC supply in Jurong in particular and developers' voracious appetite for residential land in general, they highlight strong underlying demand for new ECs, which cater to owner occupiers - who are not the target of many of the property cooling measures.Also, under the Total Debt Servicing Ratio framework, a buyer wishing to upgrade from his current Housing and Development Board (HDB) flat can probably get a bigger housing loan for an EC purchase, rather than a private property; this is because the HDB monthly mortgage payment will not be factored into TDSR calculations when banks assess the amount of loan they grant to an EC buyer, notes Nicholas Mak, executive director at SLP International.At yesterday's tender, the top bidder for the Jurong plot, located at Yuan Ching Road/Tao Ching Road, was a consortium comprising Evia Real Estate (5), BBR Development, CNH Investment and OKP Land. Its $418.53 psf ppr bid topped the previous EC land record of $392 psf ppr set for a plot in Tampines Central 7 in 2011 that is now being developed into Tampines Trilliant.The 16 bids for the Jurong site came close to the record 19 received for the Summerdale EC site in Boon Lay Drive in May 1997, points out Mr Mak.Property consultants estimate the breakeven cost for Evia's bid at $740-800 psf. CBRE Research associate director Desmond Sim predicts an average selling price of about $900 psf, which will set a new record for ECs. A seasoned developer estimates a lower selling price of around $840 psf.Evia Real Estate Management's managing director, Vincent Ong, said the group plans to develop a 500-unit EC project that "promises compelling design features and lifestyle options"."We are confident of the EC market due to the burgeoning sandwiched class and its increasingly sophisticated home taste."The company is the real estate arm of private equity firm Evia Capital Partners.Its bid was just 1.8 per cent higher than the next highest bid of $410.96 psf ppr by Greatview Development, controlled by Yu Zhisong. Other bidders include UOL Venture Investments, Singhaiyi, and a joint venture involving Sing Holdings, Maxdin and the Chiu family's Tang City Properties.Also bidding were City Developments-TID, Frasers Centrepoint, EL Development, Koh Brothers, and Hoi Hup. The lowest bid - from Han Chee Juan's Teneriffe Development - was $323.37 psf ppr.The plot at Punggol Central/Edgedale Plains drew eight bids, with a top bid of $356.14 psf ppr from a JV between Master Contract Services and Keong Hong Construction. This was 1.4 per cent more than the second highest bid by Greatview Development.Six bids were received for a nearby waterway-fronting plot along Punggol Drive/Edgedale Plains and next to Kadaloor LRT Station. Highest bidder Peak Square - a unit of Kheong Leong - priced the site at $355.17 psf ppr, 2.5 per cent more than the next highest bidder, Kingsford Development.Sim Lian was the lowest bidder for both Punggol plots.Several developers went for more than one site despite the simultaneous tender closing of the three EC sites. For instance City Developments bid for all three sites as did Kingsford Development.Frasers Centrepoint, Evia, Sing Holdings and Sim Lian were among those who bid for two sites.

[phantom_opera]

Summary:

1. New record EC plot psf of 418psf, that means selling price for EC at Jurong East far from MRT will be 9xxpsf

2. Even with 3 plots of EC lands released at the same time, many bids submitted ;all 3 bids are strong

Huat ah!!!

[hyenergix]

Summary:

1. New record EC plot psf of 418psf, that means selling price for EC at Jurong East far from MRT will be 9xxpsf

2. Even with 3 plots of EC lands released at the same time, many bids submitted ;all 3 bids are strong

Huat ah!!!

For normal sized units, I'm expecting $8xx psf. For compact sized units, $9xx psf should be the range. With J-Gateway hitting $1600 psf, there is quite a lot of upside once they change their status into pte condos. Likely to have some major announcements in JLD before the next few plots are released. Prices of properties there should be going upward quite strongly.

[Khng8]

they r bidding for a price which can only be sold in 15 mths' time.

Can also start selling after foundation works.
So developers can still sell before 15 mth limit.

[kane]

i wonder how much additional cost will be built in if they have to hang on to the plot for around 15 months.

[Ringo33]

developers will just go about doing what they need to do with construction. There is no concern about rising cost, only delayed cash flow.

For this site, developers can afford to wait as the land will be worth more when more projects around JLD gets roll out.

c) Developers of future EC sale sites from the Government Land Sales programme will only be allowed to launch units for sale 15 months from the date of award of the sites or after the physical completion of foundation works, whichever is earlier.

[wirehtc]

So launch will only be in early 2015, completion in end 2017. By e time, JLD will be much more developed. Good buy for e owners.

[Ringo33]

So launch will only be in early 2015, completion in end 2017. By e time, JLD will be much more developed. Good buy for e owners.

This project will sell very well, because this project will offer excellent view on the Jurong Gateway,

Only down side for this project is the lack of big name developer, so quality of build might be question mark.

For young couple, a better buy might be the DBSS that is right next to it.

[wirehtc]

This project will sell very well, because this project will offer excellent view on the Jurong Gateway,

Only down side for this project is the lack of big name developer, so quality of build might be question mark.

For young couple, a better buy might be the DBSS that is right next to it.

EC is a better bet for cap appreciation n rental. DBSS is still an overpriced HDB afterall.

[Ringo33]

EC is a better bet for cap appreciation n rental. DBSS is still an overpriced HDB afterall.

@$590 to $680K for a 1163sqft 5rm hdb might seem expensive now, but when EC launch at $900-$1000psf, it will make it look cheap. And this project will enjoy the full effect of JLD development as time goes by.