Far East, Frasers Centrepoint put in top bid for Yishun site

[mr funny]

http://www.businesstimes.com.sg/sub/...77540,00.html?

Published June 19, 2010

Far East, Frasers Centrepoint put in top bid for Yishun site

Duo's joint bid is 17% above the only other offer from GuocoLand for the condo plot

By UMA SHANKARI


FAR East Organization and Frasers Centrepoint jointly submitted the higher of two bids for a condo site at Yishun at the close of a state tender yesterday.

The two developers bid $229.4 million, or $321 per sq ft (psf) of gross floor area, for the 99-year leasehold plot at the junction of Yishun Ave 2, Yishun Ave 7 and Canberra Drive.

Their bid was 17 per cent higher than the only other offer, which was from GuocoLand. GuocoLand offered $196 million or $274 psf of gross floor area.

Far East Organization and Frasers Centrepoint plan to build a 660-unit project on the site. The average size of the units will be about 1,000 sq ft, said a Frasers spokeswoman.

Analysts said the low level of interest in the site - just two bids - was one of the weakest responses to a state land tender in recent times. 'The site received a muted response probably because of its larger size,' said Leonard Tay, director of CBRE Research.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said developers may have been deterred by the large potential supply of new residential units due to come up in in Yishun and Sembawang.

Competition from this large supply means new projects will take longer to sell, Mr Mak said.

Upcoming supply in the area includes HDB flats - executive condominium units and flats under the design, build and sell scheme - and private condos that will go up on three sites sold by the government so far this year.

The latest site is not near Yishun station or many amenities, Mr Mak said: 'Therefore, the new project on this site may not be as popular with home-buyers, compared with other developments.'

Developers could also be conserving resources for state sites to be released in the second half of this year, analysts said.

The new Yishun project could break even around $600 psf and units could sell for $650 psf or higher, they said.

Data from CBRE Research shows that units in The Estuary were transacted at between $660 and $800 psf in March and April.

And in the resale market, units in adjacent Yishun Emerald and Yishun Sapphire went for $540-$630 psf from February to May.

[mr funny]

http://www.straitstimes.com/Money/St...ry_542577.html

Jun 19, 2010

Yishun condo site tender gets only two bids

Likely reasons include site's location, cautious sentiments, say experts

By Joyce Teo


A TENDER for a Yishun condominium site has attracted just two bidders, a far lower number than recent tenders, as market sentiment grows more cautious.

Far East Organization's Nam Hee Contractor and Frasers Centrepoint's FCL Topaz linked up to put in the top bid of $229.4 million, or $321 per sq ft per plot ratio (psf ppr).

Their bid is 17 per cent above the No.2 bid of $196 million, or $274 psf ppr, by GuocoLand's Perfect Eagle, and 66 per cent above an expected minimum bid price of $193 psf ppr.

The weak level of interest reflects more cautious sentiment among developers, though other factors such as the site's location also played a part.

DTZ South-east Asia research head Chua Chor Hoon said the more cautious market mood follows an easing of take-up in May and June.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said if new home sales moderate to a sustainable level from here on, developers will be less bullish when tendering for sites.

Ms Chua added that developers are also less desperate to build up their landbanks now that many managed to secure sites recently. They will be more selective as there will be many more government sites to choose from in the second half of the year.

Also, property experts said the Yishun site is not very attractive as it is not near an MRT station. The site is at the junction of Yishun Avenue 2, Yishun Avenue 7 and Canberra Drive. Frasers Centrepoint said it plans to build 660 units of about 1,000 sq ft on average.

Mr Mak added that the large potential supply of new residential properties in Yishun and Sembawang could have deterred some developers from bidding.

'Competition from the large supply of new homes in the Yishun and Sembawang would mean that new projects in these areas will take a longer time to sell,' he said.

While the tender response was relatively muted, the top bid is reasonably priced, reflecting a break-even cost of about $600 psf, said CBRE Research director Leonard Tay.

Units in this project will possibly sell above $650 psf, said Mr Tay.

Ms Chua estimates the break-even price at $610 to $630 psf and said the selling price could be at $680 to $720 psf.

For comparison, Mr Tay said that in March-April, units in The Estuary were transacted at $660 to $800 psf, and resale units in the adjacent Yishun Emerald and Yishun Sapphire went for $540 to $630 psf in February-May.

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[azeoprop]

Finally there is hope for a new 600psf condo soon....

[bargain hunter]

with far east? dream on hehehe. but maybe high 6xxpsf is possible.

Finally there is hope for a new 600psf condo soon....

[devilplate]

Finally there is hope for a new 600psf condo soon....

den emerald and sapphire owners will be crying! their assets will drop to 500psf at least!

[azeoprop]

den emerald and sapphire owners will be crying! their assets will drop to 500psf at least!

Actually emerald and sapphire took a long time to sell out, I remembered an empty 'new' 4bedder in 2005 was selling around 550k only.

[devilplate]

Actually emerald and sapphire took a long time to sell out, I remembered an empty 'new' 4bedder in 2005 was selling around 550k only.

yes...tats y i duno y estuary sell so well...

when estuary gd response, analyst say pent up demand...no new condo for long time

now, this one they say too many condos...no demand..

[ay123]

with far east? dream on hehehe. but maybe high 6xxpsf is possible.

far east sell on market sentiment.....if market running 800psf......they will ignore the breakeven formula.....they will still sell 800psf or above....this is how they accumulate USD8 billion

[Komo]

yes...tats y i duno y estuary sell so well...

when estuary gd response, analyst say pent up demand...no new condo for long time

now, this one they say too many condos...no demand..

Cannot compare to estuary. Estuary has a lot of strong points like near to Mrt and good reservoir view etc. Quite a rare find if you ask me, even without considering the pricing.

[Komo]

..some analyst do sound like agents themselves

[Xan]

yes...tats y i duno y estuary sell so well...

when estuary gd response, analyst say pent up demand...no new condo for long time

now, this one they say too many condos...no demand..

Estuary that stretch is considered a much better site in Yishun area (compared to those old Yishun HDB estates). Yishun ave 7, 2 canberra is very much inside the old HDB estates, no views, no amenities, basically nothing.
Estuary on the contrary faces the reservior, near SLE, near bus stops/mrt etc. And its priced reasonably alright compared to the Tree House location or even Minton. Sooner or later, Tree House's nature reserve view will be totally blocked by other condos whereas Estuary will not be blocked by anything. Estuary's surrounding will be much opened and unblocked.

I guess thats the reason why it has sold out. Not surprising.

[sleek]

Nam Hee, FCL Topaz win tender for Yishun residential land parcel
By Ephraim Seow | Posted: 23 June 2010 1848 hrs



SINGAPORE : The tender for a residential site at Yishun Avenue 2 and Yishun Avenue 7 has been awarded to the joint bid by Nam Hee Contractor and FCL Topaz.

The companies submitted the higher tender for the site at S$229.4 million. That translates to about S$311 per square foot per plot ratio.

The Housing and Development Board received only two bids for the tender. The minimum offer price for the site was S$137.9 million.

The land parcel has a site area of over 26,500 square metres and a maximum gross floor area of over 66,000 square metres.

It is slated for condominium housing development, with a 99-year lease.

The site was launched for public tender on May 5.

- CNA/al