Sim Lian emerges top bidder for DBSS site in Tampines

[mr funny]

http://www.businesstimes.com.sg/sub/...97920,00.html?

August 3, 2010, 6.31 pm (Singapore time)

Sim Lian emerges top bidder for DBSS site in Tampines

By KALPANA RASHIWALA


Sim Lian Land has emerged as the highest bidder for a site in Tampines designated for public housing under the Design, Build and Sell Scheme (DBSS).

Its top bid of $178.128 million (U$S131.678 million) works out to about $261 per square foot (psf) of potential gross floor area. The tender drew a total five bids.

The lowest offer from Ho Lee Group was for $110 million or $161.20 psf per plot ratio.

The tender, which closed on Monday, was conducted by the Housing & Development Board.

[990113d03]

8th DBSS - New Tampines dbss winning bid is $2809.81 psm by Sim Lian on Aug 2010.
7th DBSS - Yishun dbss winning bid is $1935.5 psm/GFA by Guthrie on May 2010.
6th DBSS - The Peak@ TPY winning bid is $1723 psm/GFA by Hoi Hup on Aug 2008.
5th DBSS - Parc Lumiere@Simei winning bid is $1472 psm/GFA by Sim Lian on Jun 2008.
4th DBSS - Natura Loft@Bishan winning bid is $2551 psm/GFA by Qingdao on Feb 2008.
3rd DBSS - Park Central@AMK winning bid is $2283 psm/GFA by Greathearth on Nov 2007
2nd DBSS - Cityview@BoonKeng winning bid is $2516 psm/GFA by Hoi Hup on May 2007.
1st DBSS - The Premiere@Tampines winning bid is $1223 psm/GFA by Sim Lian in 2006.

[990113d03]

The land bid of $2809.81 psm/GFA for the new tampines dbss plot is a record breaking bid for a dbss project breaking the previous record of $2551psm/GFA held by Natura Loft@Bishan. This record bid is also higher than the bid of $2516psm/GFA by Cityview@Boon Keng widely consider the most prime of the 8 DBSS land plots in terms of location. With estimated higher construction cost in the near future, this tampines dbss may set a new price record overtaking Natura Loft's peak price of $737k for the most expensive unit. Can Sporean with combined income of 8k afford this? We will soon know the answer once sales begin for this record breaking plot at Tampines. Cant imagine in a span of 4 years time, price of land at Tampines can increase from $1223psm/GFA for the 1st DBSS to $2809psm/GFA now for 2 plots of land side by side. Unbelieveable!

[jlrx]

Cant imagine in a span of 4 years time, price of land at Tampines can increase from $1223psm/GFA for the 1st DBSS to $2809psm/GFA now for 2 plots of land side by side. Unbelieveable!

That's why everyone must believe in PROPERTISM.

PROPERTISM Rule No. 1: Property prices always go up in the long term hence properties should only be bought and not sold.

Between 2006 and 2010, the HDB Resale Index went up by 60% from around 100 points to 160 points.

On the other hand, the land tender went up by 130% from $1223psm/GFA to $2809psm/GFA.

PROPERTISM Rule No. 2: Land is more valuable than air.

[jitkiat]

Unless government raises the 8k family income restriction or buyers are going to settle with MM DBSS units, otherwise I don't see how a HDB 5r beyond 750k can sell to the target group of buyers.

[devilplate]

Unless government raises the 8k family income restriction or buyers are going to settle with MM DBSS units, otherwise I don't see how a HDB 5r beyond 750k can sell to the target group of buyers.

cfm MM 5rm flat on the making...hehe

[shauntanzs]

yes!! 3 cheers to SL. the owners of the 1st dbss laughing all the way to the bank liao. The 1st dbss they sell ard 300-400psf. This new one should be ard 550-650psf. SL very smart actually. They purposely bid higher to control the pricing of tampines as they got another pc of land in tampines going for 900-1000psf.

[jitkiat]

smart or fool, we will soon find out in 3-6 months time

[devilplate]

smart or fool, we will soon find out in 3-6 months time

no black swan event...they smart

otherwise, big fool

[teddybear]

Easy wah, build HDB 5 rm flats 850-990 sqft, 4 rm flats 750-850 sqft can already! Now we start to have MM HDBs (regarding of DBSS or not with 5 rm < 1000 sqft - may be that is the purpose of "DBSS" - need the special design to squeeze 3 BRs + Living & Dinning into <1000 sqft!).

Unless government raises the 8k family income restriction or buyers are going to settle with MM DBSS units, otherwise I don't see how a HDB 5r beyond 750k can sell to the target group of buyers.

[ay123]

5 rm already shrink from typical 120sqm to 110sqm....still want to squeeze??? no wonder horse minister always say he will make sure singaporean can "afford" a HDB.....is not to reduce price but to reduce size!!!! tat shorty tot every singaporean is as short as him that can squeeze in MM HDB WTF!!!

[990113d03]

Read in Straits Times today that Sim Lian will build 60% 4 rooms, 25% 3 rooms and 15% 5 rooms for this plot of land. Can see that they are trying to bring down the absolute quantum of each unit by building only 15% of 5 rooms. Compared to their last dbss project at Simei last year, 240 out of 360 units are 5 rooms, the rest are 4 rooms. Peak price for the a 1184sft 5 room is 575k then for the most expensive unit for Simei dbss. That is already $485psf.

[jlrx]

Easy wah, build HDB 5 rm flats 850-990 sqft, 4 rm flats 750-850 sqft can already! Now we start to have MM HDBs (regarding of DBSS or not with 5 rm < 1000 sqft - may be that is the purpose of "DBSS" - need the special design to squeeze 3 BRs + Living & Dinning into <1000 sqft!).

5 rm already shrink from typical 120sqm to 110sqm....still want to squeeze??? no wonder horse minister always say he will make sure singaporean can "afford" a HDB.....is not to reduce price but to reduce size!!!! tat shorty tot every singaporean is as short as him that can squeeze in MM HDB WTF!!!

Read in Straits Times today that Sim Lian will build 60% 4 rooms, 25% 3 rooms and 15% 5 rooms for this plot of land. Can see that they are trying to bring down the absolute quantum of each unit by building only 15% of 5 rooms. Compared to their last dbss project at Simei last year, 240 out of 360 units are 5 rooms, the rest are 4 rooms. Peak price for the a 1184sft 5 room is 575k then for the most expensive unit for Simei dbss. That is already $485psf.

[shauntanzs]

HDB got regulation one lah, cannot suka suka 800sf 5room flat...
SL is smart to got 4room...

I ever wonder this. There are so many mass market in the last 2years crossing the 1000psf and i think garmet cannot let the market fall too much. Or else all these HDB upgrader got not enough $ to top up, end up all default and all the bank up lorry. Super crisis then.
So I think Garmet will support the private mass market between 800-1000psf even in reccession.

For the RCR and CCR, these people are rich. So can allow them to free fall... 3000psf to 2000psf oso nevermind.. hahaha

I dun think OCR mass market will ever go back to the 500-600psf days...
If it really happen, many people will end up bankrupt from default...

[shauntanzs]

FYI... for DBSS and EC, even if you salary up to 10k they oso close one eye... My BIL bought duxton when his salary is 12k... HDB 2 eyes oso close.

[990113d03]

If government does not allow prices to drop to prevent bank loans being defaulted, then the market most probably will stabilised at dbss baseline of 600psf, EC baseline of 800psf and mass market condo baseline of 1000psf. New BTOs developed by HDB will then be at 400psf. In this way, a 1000sqft 4 room BTO will be priced at 400k directed from HDB. Thats expensive! 3room will be 300k, 5 room will be from 500k....the commoners will suffer...

[mr funny]

http://www.businesstimes.com.sg/sub/...97969,00.html?

Published August 4, 2010

Sim Lian tops bids for DBSS site in Tampines

It plans 680-unit project: 60% 4-room flats; 25% 3-room; the rest 5-room

By KALPANA RASHIWALA


SIM Lian Land, which emerged as the highest bidder for a site in Tampines designated for public housing under the Design, Build and Sell Scheme (DBSS), plans to build about 680 flats on the plot if awarded the site.

'About 60 per cent of the units will be four-room flats, another 25 per cent will be three-room flats and the remaining 15 per cent will comprise five-room flats,' Sim Lian Group executive director Diana Kuik told BT yesterday.

Sim Lian's top bid of about $178.2 million works out to about $261 per square foot of potential gross floor area. The tender drew five bids.

Sim Lian's price was about 22 per cent higher than the next highest offer of $213.62 per square foot per plot ratio (psf ppr) by Qingdao Construction (Singapore). A joint venture between Hoi Hup Realty and Sunway Developments offered about $205 psf ppr. Realty Consortium (a unit of Koh Brothers) bid $200.91 psf ppr.

The lowest offer of $110 million or $161.20 psf ppr was from Ho Lee Group.

The site will be sold on 103-year leasehold tenure inclusive of a four-year construction period.

DBSS gives developers an opportunity to design, develop, price and sell HDB flats to buyers who have to meet criteria set by the Housing & Development Board, including a monthly household income ceiling of $8,000.

The plot is next to Singapore's first DBSS project, The Premiere@Tampines, which was also developed by Sim Lian. That is fully sold.

As for the latest DBSS plot, Sim Lian hopes to launch the project around the third quarter of next year, says Ms Kuik.

In March this year, the group clinched a 99-year leasehold condo site at Tampines Ave 1/Ave 10, facing Bedok Reservoir, at a state tender.

It plans to build a 696-unit project to be named Waterview on this plot, with the majority of units being two and three-bedroom apartments. 'We'll probably launch the project around Q4 this year,' said Ms Kuik. Sim Lian paid $302 million or $421 psf ppr for the site.

Sim Lian also has available 62 units at its Clover By the Park condo in Bishan, which is still under construction. Most of these units are three and four-bedders and are priced in the high-$900 to $1,000 psf range. The 39-storey, 99-year leasehold project has a total of 616 units. It was released in June 2008.

[mr funny]

http://www.straitstimes.com/Singapor...ry_561612.html

Aug 4, 2010

Sim Lian puts in record bid for DBSS site

Developer's $178m offer for Tampines plot tops 4 others

By Joyce Teo & Esther Teo


SIM Lian Land has put in what is likely to be a record bid for a design, build and sell scheme (DBSS) plot amid buoyant prices in the Housing Board market.

It topped the tender for a Tampines Avenue 5 site, released under HDB's DBSS, with a higher-than-expected bid of $178.13 million, or $261 per sq ft per plot ratio (psf ppr).

The offer was 22 per cent ahead of the second highest bid of $145.77 million, or $213.6 psf ppr, from China-based Qingdao Construction (Singapore).

In third place was joint venture Hoi Hup Realty and Sunway Developments' $139.9 million, or $205 psf ppr.

The plot attracted five offers, and construction firm Ho Lee Group came last with its offer of $110 million, or $161 psf ppr.

According to Ngee Ann Polytechnic real estate lecturer Nicholas Mak, Sim Lian's bid sets a new land price record for a DBSS site and breaks the previous high of $237 psf ppr set in February 2008 for a Bishan site. He had expected the tender to draw up to seven bidders with offers of between $160 and $200 psf ppr.

At $261 psf ppr, Sim Lian will have to sell three-room flats for $380,000 to $400,000, and four-room flats for $530,000 to $550,000, said Mr Mak.

Five-room units would have to be pitched at between $640,000 and $670,000.

Sim Lian executive director Diana Kuik said the developer planned to build 680 homes on the Tampines site. She said the bulk of the units - 60 per cent - will be four-room flats. Three-room flats will account for 25 per cent of the total, while five-room units will make up the remaining 15 per cent.

'Tampines is an extremely mature estate and demand is very strong for new flats,' said Ms Kuik.

The Tampines site has a maximum allowable gross floor area of 63,395 sq m, including 1,060 sq m for social and commercial facilities. It is adjacent to Singapore's first DBSS project, The Premiere@Tampines, also developed by Sim Lian, which placed a bid of $82.22 million, or $113.67 psf ppr, in January 2006.

Response then was overwhelming and saw the pilot project almost five times oversubscribed. The five-room flats eventually went for $308,000 to $450,000.

Market watchers suggest Sim Lian's aggressive bid may also be because it is better able to control costs as it has its own construction arm.

Under DBSS, private developers can design, build and sell HDB flats directly to buyers, but they have to set aside 95 per cent of the flats for first-time buyers.

[email protected]

[email protected]

[990113d03]

Not too long ago in 2001-2005, one can get a Eexc Condo unit at 500k, then slowly, 500k can buy u a 5rm dbss unit, now it seems 500k can only get u a 4rm dbss unit... soon 500k can only get u a bto 5rm unit at punggol... we are near, punggol waterfront bto is $458k... its shocking how much have 500k shrunk in value over these few years as compared to the value of property. Propertism really rules!

[maisonjai]

SL smart, targeting existing tampines hdb owners who bought subsidized flat or those who bought resale years ago after satisfying the MOP. For buyers to hop over, just top up a bit.

i didn't know The Peak 1723sqm so cheap.

[990113d03]

ya, the land bid for The Peak was low but Hoi Hup never transfer the savings to the buyers... The Peak was priced comparably as Natura Loft, Park Central and City View which have much higher land bids. Hoi Hup earn a lot for The Peak.

[devilplate]

inflation....foodcourt prices up so much!!! 10yrs ago, $10 can eat 3meals...now $10 ....

CASH SHRINKSSSSSSSSS

[proud owner]

inflation....foodcourt prices up so much!!! 10yrs ago, $10 can eat 3meals...now $10 ....

CASH SHRINKSSSSSSSSS

strange right ?


cos a lot of companies actually have pay freeze since 2007-8

[maisonjai]

ya, the land bid for The Peak was low but Hoi Hup never transfer the savings to the buyers... The Peak was priced comparably as Natura Loft, Park Central and City View which have much higher land bids. Hoi Hup earn a lot for The Peak.

ya lor, conclusion more plots of land from GLS will not cool ppty prices . More buyers Hoot Ah then we HUAT AH !!

[maisonjai]

inflation....foodcourt prices up so much!!! 10yrs ago, $10 can eat 3meals...now $10 ....

CASH SHRINKSSSSSSSSS

wa lau, 10yrs ago ur nokia hp monochrome display, now got retina display leh.

[devilplate]

wa lau, 10yrs ago ur nokia hp monochrome display, now got retina display leh.

now even ah pek using iphone! touch here and there!!

still waiting for new stock..

[proud owner]

now even ah pek using iphone! touch here and there!!

still waiting for new stock..

how much is it in spore ?

your new iphone 4

[devilplate]

how much is it in spore ?

your new iphone 4

http://m1.com.sg/iPhone/plans.html

[990113d03]

Yesterday "Zao Bao" front page mentioned that HDB will put new regulation for the DBSS project. 60% of the unit must be less than 92 sqM.

http://www.zaobao.com.sg/sp/sp100814_002.shtml

The new DBSS projects will have less 5 rooms flat. Almost all dvelopers interviewed had no issue with the new regulation to build more smaller DBSS units saying it will not affect their profits as they can build more smaller units. Is HDB getting developers to build Mickey Mouse DBSS units here to bring down the overall quantum price? Will the launch price of a <92sqM DBSS unit in future be the same price as the launch price of 5room >110sqM unit in the previous batches of DBSS projects? Taking an average of $650k for the pric of a 5roomer DBSS now, a future 92sqM unit at this price will be approx $650psf. Thats a very high psf for a DBSS unit! In this case, the norm for EC aver psf will be $850psf and private condo will be $1050psf. Is HDB cooling the market here or heating up the market here with this DBSS revised policy? Experts pls comment.

[990113d03]

I seriously doubt this revised DBSS policy will bring down the price of DBSS units. In fact, this move will cause price to increase in terms of psf. Future 4 room DBSS units will be sold at 5room DBSS unit quantum now which is in the range of $520k -740k selling price now based on the average price taken from past selling projects like Natura Loft, The Peak, Park Central, City View and Parc Lumiere 5 room prices.