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Thread: Yishun condo site draws record bid of $213.5m

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    Default Yishun condo site draws record bid of $213.5m

    March 26, 2008

    Yishun condo site draws record bid of $213.5m

    MCL Land's offer for 99-year plot almost 70 per cent higher than the next bid

    By Fiona Chan, Property Reporter


    A YISHUN condominium site drew a higher-than-expected top bid when its tender closed yesterday, belying expectations of a property market slide.

    Developer MCL Land offered $213.5 million for the 99-year leasehold plot, which works out to about $350 per sq ft per plot ratio (psf ppr) - believed to be a new benchmark for Yishun.

    Property consultants said this could translate into the finished project selling at record prices for the area, even as home buyers are now holding out for lower prices in a subdued market.

    Mr Nicholas Mak, director of research and consultancy at Knight Frank, estimated that the end units for the Yishun project could be priced from $830 psf up to almost $900 psf.

    This would be almost double what the 99-year leasehold Orchid Park Condo down the road is fetching. Four units at the 14-year-old development have been sold there this year at an average price of $460 psf.

    MCL Land's bid pipped four others and came in almost 70 per cent higher than the next bid, from Peak Green, at $127 million, or $208 psf ppr.

    Frasers Centrepoint, Sim Lian and Hong Kong's Cheung Kong also tabled offers ranging from $57.7 million to $109.7 million, or $95 to $180 psf ppr - which some consultants said were 'unrealistically low' bids. They had predicted bids of between $200 and $300 psf ppr.

    But Mr Li Hiaw Ho, executive director of CBRE Research, said the response was 'fairly robust' and signalled 'developers' confidence in the suburban segment despite the current lukewarm response to new projects'.

    'Should the United States enter a mild recession and the sub-prime problems clear up, sentiment for suburban homes should improve after June, bringing demand and upward price momentum back to the market.'

    Experts described MCL Land's offer as 'extremely bullish' and suggested that the developer may be short on land bank in the mass market segment.

    MCL Land said in its latest financial results that it bought some sites last year, including Holland Hill Mansions and Dynasty Court Garden 1 in Sixth Avenue. Its land bank can now yield 780 units with a total gross floor area of 1.4 million sq ft.

    The Yishun site is at the corner of Yishun Avenues 1 and 2, and is 10 minutes' walk from Khatib MRT Station. It is next to Yishun Stadium and overlooks Lower Seletar Reservoir.

    'The site is good in that frontage to the reservoir is fantastic,' said Mr Ku Swee Yong, director of marketing and business development at Savills Singapore. 'I agree you should pay a premium for this site, but this seems to be a very significant premium.'

    Separately, HDB yesterday put two more sites up for sale through its reserve list system.

    One is a 182,986 sq ft plot at Jurong West Street 42 for executive condos, while the other is a 244,341 sq ft condo site at Chestnut Avenue in Bukit Panjang.

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    Default Re: Yishun condo site draws record bid of $213.5m

    MCl was the only one to bid so high. No one else thought it was worth so much. So the bid reflects only one developer's outlook. The rest are not so optimistic.

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    Default Re: Yishun condo site draws record bid of $213.5m

    Quote Originally Posted by Unregistered
    MCl was the only one to bid so high. No one else thought it was worth so much. So the bid reflects only one developer's outlook. The rest are not so optimistic.
    Well given the confident MCL has, I am sure the rest of the developer will follow.
    Why would they want to make less if someone made the brenchmark. Even the home owner in hte area would also mark up their prices.

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    Default Re: Yishun condo site draws record bid of $213.5m

    Quote Originally Posted by Unregistered
    MCl was the only one to bid so high. No one else thought it was worth so much. So the bid reflects only one developer's outlook. The rest are not so optimistic.
    Everything also negative, how to stay ahead of the curve. Anyway, read today property supplement and decide for yourself if Singapore story is real or not.

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    Default Re: Yishun condo site draws record bid of $213.5m

    Quote Originally Posted by Unregistered
    Everything also negative, how to stay ahead of the curve. Anyway, read today property supplement and decide for yourself if Singapore story is real or not.
    I take it as a pinch of salt when i know who are the writers.

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    Default Re: Yishun condo site draws record bid of $213.5m

    The curve is peaking, so staying ahead means see the negative gradient.

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    Default Re: Yishun condo site draws record bid of $213.5m

    Quote Originally Posted by Unregistered
    The curve is peaking, so staying ahead means see the negative gradient.
    Which curve?
    Your curve or the market curve?

    We know yours is peaking. Not for the market one though.

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    Default Re: Yishun condo site draws record bid of $213.5m

    Quote Originally Posted by Unregistered
    The curve is peaking, so staying ahead means see the negative gradient.
    Hopefully a zero gradient at least, a negative one will not be good.

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    Default Re: Yishun condo site draws record bid of $213.5m

    Quote Originally Posted by Unregistered
    Well given the confident MCL has, I am sure the rest of the developer will follow.
    Why would they want to make less if someone made the brenchmark. Even the home owner in hte area would also mark up their prices.

    MCL is a follow up of Billion. Sour grapes may say, "only one of a kind", but within the span of one week, we have two sites going higher and higher.

    Yes, you can't draw a line with one dot, but you can with two. Let's see if a third site sale with the same vigour or even at a higher price shows up in the next site sale and the picture would be clearer.

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    Default Re: Yishun condo site draws record bid of $213.5m

    Quote Originally Posted by Unregistered
    The curve is peaking, so staying ahead means see the negative gradient.
    Quote Originally Posted by Unregistered
    Which curve?
    Your curve or the market curve?

    We know yours is peaking. Not for the market one though.
    Why should the curve be peaking?

    It could be a point of inflection. The market needs to take a rest after such a steep climb.


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