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Thread: All 17 bids for Punggol site surpass EC record

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    Default 17 bids received for Sumang Walk land parcel slated for executive condominium develop

    17 bids received for Sumang Walk land parcel slated for executive condominium development

    27 Feb 2018 06:41PM (Updated: 27 Feb 2018 06:50PM)


    SINGAPORE: A land parcel at Sumang Walk has attracted 17 bids at the close of its tender on Tuesday (Feb 27).

    The Housing and Development Board (HDB) said the sale site, earmarked for executive condominium housing, received a joint top bid of S$509.37 million from CDL Constellation and TID Residential. This works out to about S$6,275 per square metre of the gross floor area (GFA).



    The tender for the 27,056.4 square metre site was launched on Dec 12, 2017. In a press release, HDB said the 99-year leasehold site can potentially yield a maximum of 820 dwelling units.

    The HDB added that a decision on the award of the tender will be made after all bids have been evaluated.

    Source: CNA/zl

    Read more at https://www.channelnewsasia.com/news...ed-for-9996102

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    Default All 17 bids for Punggol site surpass EC record

    All 17 bids for Punggol site surpass EC record

    Feb 28, 2018

    CDL-TID submits top $509.37m offer; analysts say strong interest reflects lack of new EC sites

    Kalpana Rashiwala



    The severe supply shortage of land for executive condominiums (ECs) likely prompted the 17 aggressive bids for a Punggol site.

    All 17 offers surpassed the previous record price for EC land set in July 2013 for the Lake Life site in Tao Ching Road near Jurong Lake.

    The top bid of $509.37 million for the Sumang Walk plot works out to a record $583 per sq ft per plot ratio (psf ppr). It came from a joint venture between a City Developments (CDL) unit and TID Residential.

    TID Residential is ultimately owned by Hong Leong Holdings and Mitsui Fudosan Co.

    The bid was 4.8 per cent above one of $486 million or $556.26 psf ppr from Qingjiang Realty (Residential). That was followed by bids from a tie-up between Yanlord Singapore Residential and Soilbuild Group Holdings, and a Hoi Hup Realty and Sunway Developments team.

    The lowest bid, from a Ho Bee Land unit, was $373.81 million, which works out to $427.85 psf ppr.

    A maximum of 820 units has been stipulated for the EC project on the site. The 2.7ha land parcel is adjacent to My Waterway @ Punggol.

    Analysts said the strong turnout and bids reflect the lack of new EC sites. The Sumang Walk plot was the only EC land offered in the Government Land Sales (GLS) programme for the whole of last year.

    JLL national director Ong Teck Hui said the top bid was "stunning", "way above market expectations". It was also 64 per cent higher than the top bid of $355 psf ppr for the Anchorvale Lane site in August 2016, which was the last EC tender.

    "The absence of an EC land tender for one and a half years... and a rising private residential market are contributors to the bullish outlook for the EC market among bidders."

    Last year, developers sold 4,011 EC units. Mr Ong estimates CDL and TID's break-even cost at close to $1,000 psf - above recent new EC transactions in the area.

    CDL is upbeat about prospects for the proposed project on the Sumang Walk site. Group chief executive Sherman Kwek said: "We are confident of its success given its excellent location and desirable attributes. Punggol... has an exciting future and we believe this will make the site very compelling to home buyers. It is also very close to LRT and MRT stations as well as a bus interchange, which is hard to come by for an EC project. Being right next to My [email protected], the site also offers the opportunity to create a landmark waterfront residence with pleasant views."

    The CDL and TID joint venture would explore a project comprising 13 blocks of 10 to 17 storeys.

    "To maximise the scenic views, windows will be oriented towards Punggol Reservoir and My [email protected] The sizeable land area will also allow for generous landscaping," CDL said.

    The first-half GLS programme has three EC sites on offer: a plot in Canberra Link in the Sembawang area on the confirmed list, and two on the reserve list - in Tampines Avenue 10 and Anchorvale Crescent in Sengkang.

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    EC supply crunch powers Punggol site to record price

    Top bid for Sumang Walk site is S$583 psf ppr, 39% higher than 2013 record of S$419 psf ppr for Lake Life

    Wed, Feb 28, 2018

    Kalpana Rashiwala


    THE under-supply in the executive condominium (EC) market is so acute that all 17 bidders at a state tender for a site in Punggol have placed bids that are higher than the record for EC land set in July 2013, at the previous peak of the residential market.

    The top bid for the Sumang Walk site at Tuesday's tender closing, from a joint venture between wholly-owned subsidiaries of City Developments Ltd (CDL) and TID, was S$583 per square foot per plot ratio (psf ppr).

    This was 64 per cent higher than the top bid of S$355 psf ppr for the Anchorvale Lane site in August 2016, during the last EC tender. JLL national director Ong Teck described this as "stunning" and "way above market expectations".

    There has been no EC land tender for 11/2 years, which has made for a severely undersupplied market; fewer than 1,000 unsold EC units are available, including those in the upcoming 628-unit Rivercove Residences along Anchorvale Lane in Sengkang. A rising private residential market is also contributing to the bullish outlook for the EC market among bidders, said Mr Ong.

    Last year, developers sold 4,011 EC units.

    Most property consultants estimated CDL and TID's breakeven cost at close to S$1,000 psf - exceeding that of new EC transactions in the area.

    JLL's Mr Ong noted that a few transactions at The Vales in Sengkang averaged S$860 psf in recent months. "There seems to be an assumption that EC prices will rise by more than 20 per cent by the time the project on the subject site is launched."

    ECs are a public-private hybrid form of housing with initial buyer eligibility and resale conditions that are lifted 10 years after the project's completion.

    On a more positive note, Edmund Tie & Co research head Lee Nai Jia said: "While the top bid is considered high relative to past launch prices, the demand for the site is expected to be supported by buyers' positive outlook of the area. Furthermore, with prices of new private homes trending upwards, the final selling price of the future EC development will be an attractive option for investment."

    Market watchers suggested that some potential buyers eyeing the Sumang Walk project who find their budgets stretched could count on some financial help from their parents.

    Dr Lee said the Sumang Walk's attractive attributes include the site being within walking distance of the Waterway Point shopping mall, and its closeness to the upcoming Punggol Digital District.

    "There will be a substantial rental catchment when the Digital District is up and running. Additionally, there are not many competing EC developments in the market currently."

    The CDL-TID joint venture's top bid was 4.8 per cent higher than the second highest bid of S$486 million or S$556.26 psf ppr from Qingjian Realty (Residential).

    The third highest bid came from a tie-up between Yanlord Singapore Residential and Soilbuild Group Holdings, which offered S$450 million for the site. Hoi Hup Realty teamed up with Sunway Developments for a S$446.6 million bid. The lowest bid, from Ho Bee Land unit HB Lombard, was S$373.81 million, which works out to S$427.85 psf ppr.

    All bids surpassed the July 2013 record price of S$419 psf ppr for EC land; that high had been set for the Lake Life site at the junction of Tao Ching Road and Yuan Ching Road, near Jurong Lake.

    The 2.7-hectare Sumang Walk, which is adjacent to My Waterway @ Punggol, can accommodate up to 820 residential units.

    This will be CDL's ninth EC project. If awarded the site, the CDL and TID joint venture will look into developing 13 blocks of 10 to 17 storeys.

    CDL said in a statement: "To maximise the scenic views, windows will be oriented towards Punggol Reservoir and My [email protected] The sizable land area will also allow for generous landscaping."

    Sherman Kwek, group chief executive of CDL, is upbeat about the prospects for the proposed project. "We are confident of its success, given its excellent location and desirable attributes. Punggol, slated to be Singapore's first Digital District, has an exciting future and we believe this will make the site very compelling to home buyers. It is also very close to LRT and MRT stations, as well as a bus interchange, which is hard to come by for an EC project. Being right next to My [email protected], the site also offers the opportunity to create a landmark waterfront residence with pleasant views."

    While Tuesday's tender set a record unit land rate for an EC site, the 17 bids were two shy of the 19 received in 1997 for a Boon Lay Way site, which eventually became the Summerdale EC project, said Huttons Asia head of research Lee Sze Teck.

    Developers can look forward to three EC sites in the Government Land Sales (GLS) programme in the first half of this year. These will comprise a plot in Canberra Link in the Sembawang area through the confirmed list, and two land parcels through the reserve list - one along Tampines Avenue 10 and the other, Anchorvale Crescent in Sengkang.

    Also taking part in Tuesday's tender were a tie up between Sing Development, FEC Properties and Koh Brothers Group unit Changi Properties. Evia Real Estate (8) partnered Gamuda for a S$426.37 million bid. MCC Land offered S$413.7 million.

    United Engineers' unit UED Residential partnered with TSKY Development and ZACD (Development1); the consortium's price was S$411.89 million. Frasers Property tied up with KH Capital (S$409 million). Nanshan Group Singapore Co and a Chinese partner bid S$400.83 million.

    Also bidding were GuocoLand (S$397.53 million); Sim Lian Land and JBE Properties both bid S$393.9 million. Kheng Leong's Peak Opal offered S$387.1 million for the site. A consortium comprising TTH Development, Santarli Capital Venture and Kay Lim Realty bid S$382.68 million. MCL Land was the second lowest bidder, at S$382 million.

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    S$1,000 psf to S$1,100 psf breakeven. Future selling price of S$1,300 psf?

    https://singaporepropertykaki.com/20...e-you-serious/

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    Quote Originally Posted by SGPropertyKaki View Post
    S$1,000 psf to S$1,100 psf breakeven. Future selling price of S$1,300 psf?

    https://singaporepropertykaki.com/20...e-you-serious/
    some analysts have touted a low margin 1150psf as that is still within the income cap.

    chances are that rivercove will raise prices to 1000psf and still sell out quickly. huttons agents are also touting another Parc Botannia price hike after tomorrow.

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    Quote Originally Posted by bargain hunter View Post
    some analysts have touted a low margin 1150psf as that is still within the income cap.

    chances are that rivercove will raise prices to 1000psf and still sell out quickly. huttons agents are also touting another Parc Botannia price hike after tomorrow.
    Greedy developers will be punished with more cooling measures.

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