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Thread: Woodleigh residential site attracts top bid of $700.7m

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    Default Woodleigh residential site attracts top bid of $700.7m

    Woodleigh residential site attracts top bid of $700.7m

    JUL 12, 2017

    Location draws interest of 15 developers, including offers exceeding $1,000 psfppr

    Rachael Boon


    A unit of Chip Eng Seng Corp and Unique Real Estate has put in the top bid for a plum site in Woodleigh Lane.

    The Government land sales site tender attracted 15 bidders - close to what analysts had predicted - with offer amounts exceeding expectations.

    The 99-year leasehold site launched on May 30 under the confirmed list for the first half of this year drew a top bid of $700.7 million from CEL Unique Development, which is 60 per cent owned by Chip Eng Seng Corp, and 40 per cent by Unique Real Estate.

    Unique Real Estate is a joint venture of Heeton Holdings and KSH Holdings units.

    The land is next to Woodleigh MRT station, adjacent to Bidadari New Town and near amenities such as Nex shopping mall. The 19,547 sq m site has a maximum gross floor area of 58,641 sq m.

    Mr Ong Teck Hui, national director of research and consultancy at JLL, said: "The bidding war for residential sites has escalated further in this tender, driven by bidders' determination to secure this attractive site in a market that is potentially recovering." He noted that about half the bids were above expectations, with the top four within a tight 3.6 per cent margin.

    Mr Nicholas Mak, head of research and consultancy at ZACD Group, said many bids were aggressive, "despite the large size of the site and the heavy financial commitment required". About one-third of the 15 bids were above $1,000 per sq ft per plot ratio (psf ppr).

    Dr Lee Nai Jia, head of research at consultancy Edmund Tie & Company, was not surprised, given that the parcel is in a highly attractive location. "Depending on how the development orientates itself, residents will enjoy unblocked views as the site is adjacent to the landed housing area," he added.

    Based on the land bid, he expects the selling price of the proposed development to range from $1,720 psf to $1,800 psf.

    However, Ms Christine Li, director of research at Cushman & Wakefield, noted that such selling prices are not supported in the vicinity, and the plot could face some competition from the mixed-use site in Bidadari estate secured by entities linked to Singapore Press Holdings and Kajima Development.

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    Woodleigh site also draws robust bidding

    Top bid of S$1,110 psf ppr expected to lead to sale price of about S$1,800 psf

    July 12, 2017

    LEE MEIXIAN


    A RESIDENTIAL site at Woodleigh Lane near Bidadari housing estate is the latest to draw aggressive bidding.

    This time, 15 bidders took part, with CEL Unique Development, a joint venture between Chip Eng Seng, Heeton and KSH, putting in the highest bid of S$700.7 million, which translates to about S$1,110 per square foot per plot ratio (psf ppr).

    Keen competition was evident, with a tight margin of 0.8 per cent between the first and second bids. The top four bids were also all neck-and-neck with a tight 3.6 per cent margin. A total of five bids came in at above S$1,000 psf ppr.

    Analysts say the tender price works out to a breakeven price of S$1,500-1,600 psf, and an eventual sale price of about S$1,800 psf.

    Currently, units at nearby new developments are selling at far below that. Poiz Residences and Forest Woods were both transacting at a median price of just under S$1,400 psf in May this year.

    A year ago, a psf ppr price figure of above S$1,000 would have caused jaws to drop, but this is gradually becoming a norm in recent tenders.

    In June, Singapore Press Holdings and Kajima Development put in a top bid that translated to S$1,181 psf ppr for a mixed-use Bidadari site.

    In May, Hong Kong's Logan Property and Chinese developer Nanshan Group put in a bid that works out to S$1,050 psf ppr for a Stirling Road plot. Both this and SPH's bid carried a total quantum above S$1 billion.

    Listed Chip Eng Seng and KSH said in disclosures that they plan to build a condominium comprising 16-storey residential blocks on the Woodleigh site, with a total of over 800 units.

    Corson and Wingjoy Investment, units of Keppel Land and Wing Tai respectively, put in the second highest bid of S$695 million, or about S$1,101 psf ppr.

    City Developments' Verwood Holdings paired up with Logan Property to put in the third highest bid of S$688.1 million, or about S$1,090 psf ppr.

    Desmond Sim, head of CBRE Research, Singapore and South East Asia, called the results "unsurprising", as the site had been identified as a high-profile one from the start, being located right beside Woodleigh MRT station and within the up-and-coming Bidadari precinct.

    Besides, market sentiment has been picking up for some time now, and developers have been keen to restock their land bank with key development sites in order to keep their businesses running, he said.

    Ong Teck Hui, national director for research and consultancy at JLL, said: "The bidding war for residential sites has escalated further in this tender, driven by bidders' determination to secure this attractive site in a market that is potentially recovering."

    Indeed, many analysts are anticipating a bottoming-out of the market at the end of this year, and for residential prices to appreciate again starting 2018.

    Christine Li, director of research at Cushman & Wakefield added that the tender results show that when a choice city-fringe site is up for sale, there will be no shortage of interest.

    Asked if the current land bidding behaviour will undo the effects of property cooling measures, Mr Sim from CBRE said it is difficult for the government to gauge the amount of state land to release for sale, because if it were to attempt to do so, it could easily tip the balance over and create an oversupply situation - a repeat of what happened in 2012.

    "One factor that could keeps the property market in check is the resale market. If the resale market finds it hard to match its prices with those in the new home sale market, this could attract some demand going to the resale market instead in the future."

    Meanwhile, aggressive bidding in land tenders has already pushed some developers into the private en bloc market.

    "With the imbalance between demand for land and the number of development sites available in the government land sales programme, we will likely see more collective sales committees being formed in older estates. More developers will probably seek this avenue as an option for replenishing land banks," Mr Sim said.

    At last week's Real Estate Developers' Association seminar, some industry players described the compounding effect of aggressive land bidding, saying that since there can only be one winner for a site, each tender exercise leaves a large amount of capital on the sidelines waiting to be deployed into the next land parcel, thus feeding an upward spiral.

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    Based on the land bid, he expects the selling price of the proposed development to range from $1,720 psf to $1,800 psf.

    2017 + 4 = 2021 about 15%

    Don't know should be happy or sad.

    http://www.cnbc.com/2017/04/13/singa...n-stanley.html

    That implies a 5 to 6 percent increase per annum and would mark a reversal from a long downtrend in home prices.

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    Quote Originally Posted by Arcachon View Post
    Based on the land bid, he expects the selling price of the proposed development to range from $1,720 psf to $1,800 psf.

    2017 + 4 = 2021 about 15%

    Don't know should be happy or sad.

    http://www.cnbc.com/2017/04/13/singa...n-stanley.html

    That implies a 5 to 6 percent increase per annum and would mark a reversal from a long downtrend in home prices.
    When properties prices increase rapidly, even those vested maybe worried, as their 99LH lease will eventually run out and their next generations may not be able to afford a home... (like what's happening in HK)

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    if the estimated selling price is really $1700-1800 psf then this will clearly be a new high for this region.. now serangoon Forest Woods is only about $1400 psf. potong pasir condos are around $1300-1500.. and eight riversuites in BK is around the same as PP. will it have any spillover effects to these other regions?

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    I observe that people hardly talk about the western end. So till now that area is still an underdog.

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    Quote Originally Posted by frumnat View Post
    I observe that people hardly talk about the western end. So till now that area is still an underdog.
    whats do u mean western end?

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    Quote Originally Posted by aspirations View Post
    whats do u mean western end?
    From Jurong East onwards in the direction of Tuas

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