Page 3 of 3 FirstFirst 123
Results 61 to 75 of 75

Thread: Tender for Laguna Park closes with no winner

  1. #61
    Join Date
    Jul 2009
    Posts
    549

    Default

    Quote Originally Posted by kane
    The case of the gillman heights owner getting under 900k is a good reminder to potential en bloc residents. Cut yourself too thin and you could potentially be priced out of a property in the area of the same size.
    True as well if they wait long enough like another 10 years, they will definitely be priced out of the market

  2. #62
    xebay11 is offline New Launch Project Specialist
    Join Date
    Aug 2009
    Posts
    1,439

    Default

    Quote Originally Posted by kane
    The case of the gillman heights owner getting under 900k is a good reminder to potential en bloc residents. Cut yourself too thin and you could potentially be priced out of a property in the area of the same size.
    What do they expect? Theirs is no prime FH property to start with.

  3. #63
    Join Date
    Feb 2009
    Posts
    5,837

    Default

    Quote Originally Posted by cheerful
    Or maybe some of these staying in LP didn't buy it when it was HUDC leh ... say bout 2nd-hand? So greedy oso shouldn't come as a surprise mah ... .... But if I were the 1st owner, would take the revised price tag ... wait ask for the sky really no more takers for such an old property
    if kana enbloc and get paid 1.2 mio SGD .. can buy this landed in USA HAMPTON

    land size 1 acre= 43000 sqft

    http://www.prudentialelliman.com/Lis...rchType=li&HNF#

  4. #64
    Join Date
    Feb 2009
    Posts
    5,837

    Default

    Quote Originally Posted by proud owner
    if kana enbloc and get paid 1.2 mio SGD .. can buy this landed in USA HAMPTON

    land size 1 acre= 43000 sqft

    http://www.prudentialelliman.com/Lis...chType=li&HNF#

    or any of these

    http://www.gothamphotocompany.com/FM...edf6.viewflyer

  5. #65
    Join Date
    Apr 2008
    Posts
    1,286

    Default

    Quote Originally Posted by xebay11
    In that case, that is definitely moving up for LP residents, afterall their LP when first bought, was practically HDB (HUDC), they were not private property in the begining, and they have already stayed so long for free and theirs is LH property and so these greedy fellows should actually be grateful for what ever is being offered and stop being so greedy, if you noticed, the most greedy sellers in en bloc sales are not the private property sellers but the lowest rung HUDC sellers, Neptune Court, Gillman Heights etc, they seem to have forgotten their roots.
    You cannot blame them. For HUDC dwellers, this en bloc may be a once-in-a-lifetime opportunity to make an amount of money equivalent to, or even greater than, their total income for their entire life.

    On the other hand, for Grangeford en bloc owners like Hong Kong movie star Jackie Chan, the $3.4 million he got from the en bloc represented only approximately 2 weeks' income.

    Anyway, it's quite easy to work out Laguna Park's value, by working backwards.

    It's Gross Floor Area (GFA) is, as reported, 1.9 million sq ft.

    Knowing that new condo launches nowadays do not go below $1,000 psf (even for places like West Coast, Ayer Rajah and, of all places, Geylang!), the total saleable price of the New Laguna Park project would be at least $1.9 billion.

    Subtract $300 psf for building and financing costs (i.e. $570 million), that's a land value of $1.33 billion.

    That's why bidding at the reserve price of $1.2 billion would make no sense, as the margin would be too thin for such a heavy investment.

    However, a lower en bloc price of $900 million will give the developer a potential profit of at least $430 million, not an amount to sniff at.

    That's assuming the New Laguna Park project sells at only $1,000 psf.

    If the developer makes the units "Mickey Mouse" size, as is the trend nowadays, they could even price it at $1,400 psf (same as Geylang) and achieve sellout in half a day.

    In that case, the New Laguna Park project's total saleable value goes up to $2.66 billion !!!

    I guess that was probably what the Indonesian bidder had in mind when they bidded $1.7 billion, but withdrew last minute when the Business Times reported that URA may not approve these "Shoebox Units".

    The Business Times Oct 17, 2009
    'Shoebox' units may wilt under URA's gaze

    Last edited by jlrx; 20-10-09 at 01:55.

  6. #66
    Join Date
    Jul 2009
    Posts
    7,482

    Default

    Quote Originally Posted by andy
    True as well if they wait long enough like another 10 years, they will definitely be priced out of the market
    Therefore, if they accept a low bid now, the price out is immediate. If they wait another 10 years, they at least have their seaview for another 10 years, after which the older folks can go live with their children to see out their remaining retirement years.

  7. #67
    Join Date
    Nov 2008
    Posts
    1,141

    Default

    Quote Originally Posted by proud owner
    if kana enbloc and get paid 1.2 mio SGD .. can buy this landed in USA HAMPTON

    land size 1 acre= 43000 sqft

    http://www.prudentialelliman.com/Lis...rchType=li&HNF#
    http://172.31.254.241/www.prudential...tos/108500.jpg

    The agent look so hunky.

  8. #68
    Join Date
    Nov 2008
    Posts
    1,141

    Default

    Quote Originally Posted by jlrx
    You cannot blame them. For HUDC dwellers, this en bloc may be a once-in-a-lifetime opportunity to make an amount of money equivalent to, or even greater than, their total income for their entire life.

    On the other hand, for Grangeford en bloc owners like Hong Kong movie star Jackie Chan, the $3.4 million he got from the en bloc represented only approximately 2 weeks' income.

    Anyway, it's quite easy to work out Laguna Park's value, by working backwards.

    It's Gross Floor Area (GFA) is, as reported, 1.9 million sq ft.

    Knowing that new condo launches nowadays do not go below $1,000 psf (even for places like West Coast, Ayer Rajah and, of all places, Geylang!), the total saleable price of the New Laguna Park project would be at least $1.9 billion.

    Subtract $300 psf for building and financing costs (i.e. $570 million), that's a land value of $1.33 billion.

    That's why bidding at the reserve price of $1.2 billion would make no sense, as the margin would be too thin for such a heavy investment.

    However, a lower en bloc price of $900 million will give the developer a potential profit of at least $430 million, not an amount to sniff at.

    That's assuming the New Laguna Park project sells at only $1,000 psf.

    If the developer makes the units "Mickey Mouse" size, as is the trend nowadays, they could even price it at $1,400 psf (same as Geylang) and achieve sellout in half a day.

    In that case, the New Laguna Park project's total saleable value goes up to $2.66 billion !!!

    I guess that was probably what the Indonesian bidder had in mind when they bidded $1.7 billion, but withdrew last minute when the Business Times reported that URA may not approve these "Shoebox Units".

    The Business Times Oct 17, 2009
    'Shoebox' units may wilt under URA's gaze

    I'am waiting for your book.

  9. #69
    Join Date
    Jul 2009
    Posts
    549

    Default

    Quote Originally Posted by kane
    Therefore, if they accept a low bid now, the price out is immediate. If they wait another 10 years, they at least have their seaview for another 10 years, after which the older folks can go live with their children to see out their remaining retirement years.
    LP is selling now for 850psf. No need to wait 10 years to see the value. Pearl Bank is 7 years older. It is selling for 650psf. Enbloc LP now at above 1000psf. I skipped the seaview and take the money anytime.

  10. #70
    Join Date
    Oct 2006
    Posts
    9

    Default

    Quote Originally Posted by jlrx
    Anyway, it's quite easy to work out Laguna Park's value, by working backwards.

    It's Gross Floor Area (GFA) is, as reported, 1.9 million sq ft.

    Knowing that new condo launches nowadays do not go below $1,000 psf (even for places like West Coast, Ayer Rajah and, of all places, Geylang!), the total saleable price of the New Laguna Park project would be at least $1.9 billion.

    Subtract $300 psf for building and financing costs (i.e. $570 million), that's a land value of $1.33 billion.

    That's why bidding at the reserve price of $1.2 billion would make no sense, as the margin would be too thin for such a heavy investment.

    However, a lower en bloc price of $900 million will give the developer a potential profit of at least $430 million, not an amount to sniff at.

    That's assuming the New Laguna Park project sells at only $1,000 psf.

    If the developer makes the units "Mickey Mouse" size, as is the trend nowadays, they could even price it at $1,400 psf (same as Geylang) and achieve sellout in half a day.

    In that case, the New Laguna Park project's total saleable value goes up to $2.66 billion !!!

    I guess that was probably what the Indonesian bidder had in mind when they bidded $1.7 billion, but withdrew last minute when the Business Times reported that URA may not approve these "Shoebox Units".

    The reserve price of $1.2 billion works out to $844 per square foot per plot ratio (psf ppr), including an estimated $400 million payable to the state for an increase in intensity of the site to the plot ratio of 2.8 and topping up the lease term to fresh 99 years.

    In your calculation, you left out the est $400m that the developer will still need to pay for the development premium and topping up of lease. Hence, in your example, at $1.2b enbloc price, the cost to the developer is $2.17b (1.2b + 400m + 570m). So there's no way the developer can break even at $1k psf.

    Even at $950m enbloc price, the meaningful selling price has to be at least about $1.2k psf.

  11. #71
    Reporter's Avatar
    Reporter is offline F01 N54 Sheer Driving Pleasure
    Join Date
    Apr 2008
    Posts
    2,549

    Default

    Quote Originally Posted by andy
    True as well if they wait long enough like another 10 years, they will definitely be priced out of the market
    Maybe they should learn from these newly created dragon millionaires?

    Quote Originally Posted by H88

    First successful en bloc of 2009
    H88
    Tuesday, 20 October 2009, 13:26 hrs



    Yes! Finally, Dragon Mansion has done what no other has done this year - a successful en bloc! Since the tender was announced way back in July 2009 there have been few takers, but now this small District 2 condo along Spottiswoode Park Road has breathed hot fire into the en bloc market!



    RL Developments, a unit of Roxy-Pacific Holdings (the people who own Grand Mecure Roxy Hotel and developed Balestier's Nova 48 and Nova 88), has shelled out about $100.8m for the condo. Sadly for the owners, it was much less than the $120m they were asking for. But still, under the circumstances, at least they managed to sell the place!

    $100.8m for 117,247 sqft of potential residential space works out to $860 psf ppr.

  12. #72
    Join Date
    Jul 2009
    Posts
    549

    Default

    Quote Originally Posted by Reporter
    Maybe they should learn from these newly created dragon millionaires?

    [/i]
    Yes a cool 1.38m each compared to a Jan transaction of 770k. That's a pretty good deal and a pretty darn good number.

    Now the catch is not to let the minorities take this to court which may drag out another 3 years by which time 1.38m may not be able to buy you you a replacement property.

    Hope these would be dragonaires can learn fast from Horizon towers and Gillman Heights

  13. #73
    Join Date
    Feb 2009
    Posts
    5,837

    Default

    Quote Originally Posted by andy
    Yes a cool 1.38m each compared to a Jan transaction of 770k. That's a pretty good deal and a pretty darn good number.

    Now the catch is not to let the minorities take this to court which may drag out another 3 years by which time 1.38m may not be able to buy you you a replacement property.

    Hope these would be dragonaires can learn fast from Horizon towers and Gillman Heights
    are these chinatowners stupid or realistic ? i believe the latter ..

    LP ( or east coasters?) are more greedy .. sorry if that offends anyone ..

    they have to realise that the buildings are old ..

    its like a 30 yr old man, standing in the sun and rain for all these years .. with each unit renovations, its like an organ transplant, or cosmetic surgery .. nice, but may mot prolong the lifespan or the wear and tear on the outside ..

    the longer they delay, the older they get, the more they have to fork out to maintain the buildings ...

    when its time to go, just let it go people ..

    dont learn the Till Death do us Part spirits from some politician .. let go and be happy


    NOTE I DONT OWN ANYTHING PROP IN EAST COAST

  14. #74
    Join Date
    Apr 2008
    Posts
    1,286

    Default

    Quote Originally Posted by eleong
    In your calculation, you left out the est $400m that the developer will still need to pay for the development premium and topping up of lease. Hence, in your example, at $1.2b enbloc price, the cost to the developer is $2.17b (1.2b + 400m + 570m). So there's no way the developer can break even at $1k psf.

    Even at $950m enbloc price, the meaningful selling price has to be at least about $1.2k psf.
    Alamak! You are right!

    eleong is sharp! I'm so honoured that this is eleong's first post after his registration.

    I have totally forgotten about the $400 m development charge and lease premium!

    Our big boss, the Government, also wants a cut!

    That would mean an additional cost of $210 psf.

    Which means that if the en bloc price is $900 m, the breakeven selling price is $984 psf ($900 m + $570 m + $400 m = $1.87 b divide by 1.9 million sq ft = $984 psf breakeven).

    To make a decent profit, the developer will have to sell at $1,200 psf, which will give the developer a profit of approximately $200 psf x $1.9 million sq ft = $380 million.

    Is it possible for the New Laguna Park project at East Coast to achieve $1,200 psf?

    Or should they "Mickey Mouse" it to achieve $1,400 psf? That remains to be seen ...

    Quote Originally Posted by Property_Owner
    I'am waiting for your book.
    Stay tuned to condosingapore.com to watch this exciting story unfold ...

  15. #75
    Join Date
    Dec 2008
    Posts
    3,721

    Default

    capland's liew already said at 1.2b, breakeven will be 1.2k psf
    so if price now lowered to 950m, then breakeven shld be around 960k psf lor ~

Similar Threads

  1. Pearl Bank Apartments tender closes, enters into private treaty sale
    By reporter2 in forum En Bloc Discussion and News
    Replies: 0
    -: 26-12-17, 20:06
  2. 'No broker' Gilstead Court tender closes
    By reporter2 in forum En Bloc Discussion and News
    Replies: 0
    -: 14-06-13, 15:56
  3. HDB closes tender for Tampines Central 7 after four bids
    By sleek in forum HDB, EC, commercial and industrial property discussion
    Replies: 5
    -: 26-04-11, 09:51
  4. URA closes tender bid for Choa Chu Kang site
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 4
    -: 29-05-08, 04:35
  5. Laguna Park privatised
    By mr funny in forum En Bloc Discussion and News
    Replies: 8
    -: 30-03-08, 13:54

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •