Monthly Archives: March 2010

Sim Lian’s $302m bid is tops for Tampines site

Posted on 17 Mar 2010 | Comments Off on Sim Lian’s $302m bid is tops for Tampines site

99-year plot may yield 600 units; consultants describe bids as sensible

SIM Lian Land has emerged as the top bidder for a closely contested land parcel in Tampines.

The developer led the field that included familiar names such as CapitaLand, Far East Organization, Frasers Centrepoint and MCL Land in a state land tender as demand for residential land continues to hold strong.

Sim Lian bid $302 million for the 99-year leasehold site at the junction of Tampines Avenue 1 and Avenue 10, which works out to $421 per square foot per plot ratio (psf ppr).

Analysts had previously said that the site could go for anything between $300 and $460 psf ppr.

The next highest bid of $289 million – just 4.3 per cent under Sim Lian’s – was put in jointly by Far East Organization and Frasers Centrepoint. Their bid works out to $403 psf ppr.

The site has a maximum gross floor area of 717,500 sq ft and can yield about 600 housing units. It is the biggest of the eight residential sites up for sale in the first half of this year.

‘The tender for the condominium site at Tampines Avenue 1 is another demonstration of developers’ interest in the mass-market segment,’ said CB Richard Ellis executive director for residential Joseph Tan. ‘Of the eight bids submitted, the first six bids were very close to each other.’

One developer BT spoke to expressed relief that all the bids were ’sensible’, and the ‘let’s get it at all costs’ attitude from developers is beginning to wear off after the government said that it would release more land sites in the second half of the year.

Based on the top bid of $421 psf ppr, the new project will break even at around $700 psf, said CBRE’s Mr Tan.

Caveats lodged for transactions in new projects in the Bedok Reservoir area (such as Waterfront Key and Waterfront Waves) ranged from $700 psf to $850 psf in the last 4-5 months. When the new project is ready for launch in 6-8 months, it could be priced within the same range or even higher, he added.

Donald Han, managing director of Cushman & Wakefield, said that homes on the site could go for about $800 psf. He factored in construction cost of $300-$320 psf.

‘Sim Lian is also a contractor so that means they have a better control over the construction cost,’ said Mr Han.

Source : Business Times – 17 Mar 2010

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HDB offers 828 new BTO flats

Posted on 17 Mar 2010 | Comments Off on HDB offers 828 new BTO flats

Projects in Sengkang and Sembawang may see big demand

THE Housing and Development Board (HDB) is offering 828 flats in Sengkang and Sembawang through two new build-to-order (BTO) projects.

These are the first BTO projects to be launched after the government adjusted some public housing policies early this month.

HDB is gauging interest in the 522-unit Fernvale Ridge in Sengkang, and the 306-unit Sembawang RiverLodge. Fernvale Ridge, bounded by Sengkang West Way and Fernvale Link, will be near the Fernvale, Layar and Thanggam LRT stations. There will be 180 three-room flats, 216 four-room flats and 126 five-room flats.

The selling price for a five-roomer will range from $281,000 to $352,000. According to HDB, the price of a comparable five-room resale flat in the vicinity is $415,000 to $461,000.

The other BTO project, Sembawang RiverLodge, is at Sembawang Drive. The nearest MRT station is at Sembawang, where Sun Plaza is also located.

Of the 306 units available, 86 will be three-roomers and 220 will be four-roomers.

HDB added that the project is designed to house another 126 two-room flats, but it will set these aside ‘to meet the housing needs of lower income families at a later date’.

A four-room flat at Sembawang RiverLodge will cost $212,000 to $268,000. The price of a comparable resale four-roomer nearby is $275,000 to $350,000.

PropNex CEO Mohamed Ismail expects both BTO projects to be popular and they could each be oversubscribed by at least eight times. One reason is because the sites will have three, four, or five-room flats – not studio apartments – which are suitable for young couples starting a family, he said.

Sembawang RiverLodge could stand out, he said. This is because residents will get ‘a taste of waterfront living’ with Sungei Sembawang nearby and the estate will have amenities such as a supermarket.

Applications for the new flats will close on March 29. With these two projects, HDB would have offered 3,653 new BTO flats in the first three months of the year. It plans to release 1,200 BTO flats in Punggol next month.

First-timer households comprising a Singapore citizen and permanent resident applying for flats will have to pay a $10,000 premium on top of HDB’s selling price. The $10,000 will go back to them if the PR family member becomes a citizen, or if the couple has a child who is a citizen.

Source : Business Times – 17 Mar 2010

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