True as well if they wait long enough like another 10 years, they will definitely be priced out of the marketOriginally Posted by kane
True as well if they wait long enough like another 10 years, they will definitely be priced out of the marketOriginally Posted by kane
What do they expect? Theirs is no prime FH property to start with.Originally Posted by kane
if kana enbloc and get paid 1.2 mio SGD .. can buy this landed in USA HAMPTONOriginally Posted by cheerful
land size 1 acre= 43000 sqft
http://www.prudentialelliman.com/Lis...rchType=li&HNF#
Originally Posted by proud owner
or any of these
http://www.gothamphotocompany.com/FM...edf6.viewflyer
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.Originally Posted by xebay11
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.
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.Originally Posted by andy
http://172.31.254.241/www.prudential...tos/108500.jpgOriginally Posted by proud owner
The agent look so hunky.
I'am waiting for your book.Originally Posted by jlrx
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.Originally Posted by kane
Originally Posted by jlrx
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.
Maybe they should learn from these newly created dragon millionaires?Originally Posted by andy
Originally Posted by H88
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.Originally Posted by Reporter
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 ..Originally Posted by andy
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
Alamak! You are right!Originally Posted by eleong
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 ...
Stay tuned to condosingapore.com to watch this exciting story unfold ...Originally Posted by Property_Owner
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 ~