Tag Archives: Chip Eng Seng

Executive condos return to the spotlight

Posted on 26 May 2011 | Comments Off on Executive condos return to the spotlight

Executive condos (EC), a hybrid of private and public housing, are now returning to the spotlight.

On 26 May, the government launched the 11th EC site since 2010, a plot in Punggol that can house around 720 homes.

Meanwhile, Chip Eng Seng and NTUC Choice Homes recorded rapid first-day sales for their Belysa project in the Pasir Ris / Elias Road area. Of the 315 units, 147, comprising three- and four-bedroom units, have been sold at around S$670 psf each.

“There is a big market for EC units priced between S$600,000 and S$700,000,” said Joseph Tan, CB Richard Ellis (CBRE) Executive Director (Residential), adding that the price gap between 99-year leasehold suburban private condos and EC projects has widened once again.

Mr. Tan noted that the typical price gap was around 25 to 30 percent when ECs were launched in 1996. This gap narrowed over the years due to weak suburban condo prices, which resulted in dwindling demand for ECs.

However, the sharp recovery of 99-year mass market condo prices has reinforced the demand for ECs.

“Today, 99-year mass market condos which are not near an MRT station could be priced around S$900 to S$950 psf on average, while an EC project in a similar location would be around S$650 to S$700 psf,” Mr. Tan said.

Most analysts expect the monthly household income ceiling for ECs to be increased from S$10,000 to S$12,000 or above, assuming the government proceeds to raise the ceiling for those purchasing new Build-To-Order (BTO) flats from the HDB from S$8,000 to S$10,000, pending a review.

“That will create more realistically-priced alternatives for the sandwich class and siphon off some demand from 99-year mass-market private condos,” said Mr Tan.

Many real estate analysts anticipate top bids for the recent EC site at Punggol Way / Punggol Field to be within the S$300 psf to S$350 psf ppr range and the average selling price to be approximately S$700 psf to S$750 psf.

Ong Teck Hui, Credo Real Estate Executive Director, noted that some EC developers may be more careful about bidding for the site if they are concerned that the income ceiling for EC buyers will be unchanged while that for HDB BTO flats will increase. Consequently, more people will qualify for HDB flats and this will lower demand for ECs.

Source : PropertyGuru – 26 May 2011

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Chip Eng Seng buys A$20m site in Melbourne

Posted on 16 Mar 2010 | Comments Off on Chip Eng Seng buys A$20m site in Melbourne

CHIP Eng Seng Corporation has extended its footprint overseas with the purchase of a A$20.2 million (S$25.8 million) site in Melbourne.

The deal is considerable when it is seen against the property and construction firm’s net profit of $75.3 million for FY2009.

The land parcel is located at Mackenzie Street, in the eastern part of Melbourne’s central business district, and spans around 20,000 sq ft. Chip Eng Seng plans to build a 32-storey tower on the site, with 350 residential apartments and other amenities such as shops.

This site marks the company’s third development project in Australia. It had earlier completed a commercial building and a residential project in Adelaide.

‘With the stabilising world economy, we believe that this is an opportune time for us to expand our development property portfolio,’ said Chip Eng Seng executive chairman Lim Tiam Seng.

‘Melbourne represents a great opportunity as the city is currently experiencing a shortage in supply even as the population continues to increase.’

Chip Eng Seng does not expect the project in Melbourne to have any material impact on its net tangible assets and earnings per share for the current financial year ending Dec 31. It will be funding the site purchase using internal funds and bank borrowings.

As at end-2009, the company had cash and cash equivalents worth $76.1 million and a net debt to equity ratio of 0.15.

Mr Lim expects Chip Eng Seng’s cash position to strengthen further when its joint development projects, The Parc Condominium in the West Coast area and City Vista Residences near Cairnhill, receive their temporary occupation permits this year.

‘This puts us in an excellent position to pursue opportunities in Singapore and the region, as well as allow us to tender competitively for construction pro-jects,’ he said.

Chip Eng Seng’s most recent property launch was that of Oasis@Elias in Pasir Ris. The company has been bidding for land at state tenders in the last few months in a bid to top up its residential land bank.

The counter closed unchanged yesterday at 39 cents.

Source : Business Times – 16 Mar 2010

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Posted in Developers, Overseas Property

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