A RESIDENTIAL site in the heart of Sengkang, which could yield about 710 new condominium units, is set to go on sale by public tender if interest from developers is strong enough.

The 231,122 sq ft plot, opposite Sengkang Town Centre at Sengkang Square, is being released today under the reserve list of the Government Land Sales programme for the first half of this year.

Under this list, the site will go to public tender if a developer submits a bid that meets a minimum threshold that is acceptable to the Government.

Three more residential sites will be released later this month.

Two are on the confirmed list, which means the site goes to public tender directly. One is located at Rosewood Drive, while the other is at Flora Drive.

The other reserve list site is located in Hillview Avenue.

Together, the three sites and the reserve list site being released today could yield about 1,885 units.

The Sengkang site has a plot ratio of 3.0, which means it can be built up to a maximum gross floor area of 693,368 sq ft.

Conditions tied to the sale of the 99-year leasehold site stipulate that the successful tenderer will have to complete the project five years from the date of acceptance of the tender.

The site is located near the Compass Point shopping mall and community facilities such as Sengkang Community Hub. Schools like Nan Chiau Primary School and CHIJ Saint Joseph’s Convent are also within walking distance.

Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said it is set to be a popular site.

‘It’s walking distance from the MRT and anything that’s near an MRT station is going to be a selling point,’ he noted.

Mr Chris Koh, Dennis Wee Group director, said: ‘Sengkang is becoming a more mature estate.

‘Five years ago, not many people would want to move there. But now that’s not the case, especially if a developer develops a condo right in the middle of the estate.’

A neighbouring plot, at the junction of Sengkang Square and Compassvale Road recently attracted nine bids, with a top bid of $286.79 million or $501.76 per sq ft per plot ratio from Keppel Land.

Source: Straits Times, 6 April 2011

Mix of confident and cautious bidding: Analyst
A CONSORTIUM that includes big hitters Hong Leong Group and City Developments trumped seven other bidders to lodge the top offer of $413 million for a Bartley Road site.

The offer by the consortium, which also includes TID Residential, works out to $621 per square foot per plot ratio (psf ppr).

It was less than 1 per cent higher than the $410 million offered by a Keppel Land unit, but almost double the bid that triggered the tender for the reserve list site.

A Qingdao Construction joint venture came in third with $386 million.

MCL Land, Allgreen Properties, and a joint venture of Far East Organization and Frasers Centrepoint were also among the bidders.

Hong Leong Group said it plans a development of about 700 units aimed at young families, professionals and upgraders for the 99-year leasehold site.

The 237,822-sq-ft site is zoned for condominium development and can be built up to a maximum gross floor area of 665,909 sq ft.

Property observers said the number of bids and the level of participation were within expectations.

Credo Real Estate’s head of research and consultancy, Mr Ong Teck Hui, described the tender’s results as a ‘mix of confident and cautious bidding’.

‘The top few bidders reflect confidence on market outlook and selling price, while the lower bidders were obviously more cautious.’

The site’s proximity to Maris Stella High and Paya Lebar Methodist Girls’ Primary, both popular schools, would make a development there an attractive option for families, said analysts.

The land is also near Bartley Circle Line MRT station, connecting it to shopping malls like Nex and Junction 8.

Nearby land that has been developed into Nin Residences was sold for $607 psf ppr. The project was launched at about $1,250 psf last December.

Analysts estimate the break-even price for the new condominium on the Bartley site to hover around $990 to $1,030 psf.

Source: Straits Times, 31 Mar 2011

99-year leasehold sites in Pasir Ris, Sembawang and Sengkang East to be sold under govt scheme
THREE pieces of state land – in Pasir Ris, Sembawang and Sengkang East – which could yield as many as 1,500 homes, are on sale.

The 99-year leasehold sites are on the confirmed list of the Government Land Sales (GLS) programme for the first half of the year.

The first site is a 2.7ha parcel at the intersection of Jalan Loyang Besar and Pasir Ris Drive 4, which has a gross floor area (GFA) of 610,023 sq ft and can yield about 580 units.

It is near the Pasir Ris MRT station and bus interchange. Pasir Ris Park is also nearby. Property watchers predict that the site could see up to six bids. CBRE Research estimates it could be sold for up to $230 million.

Units at the nearby JLB Residences sold for an average of $876 per sq ft (psf) in January.

For the next site, a 2.8ha plot at the junction of Sembawang Road and Jalan Sendudok, a future development there can be built to a height of five storeys, with a GFA of 416,940 sq ft, and accommodate about 390 units.

Developers can choose between building apartments or strata-titled landed housing.

The site is near Sembawang MRT station and Sun Plaza, and adjacent to Sembawang Shopping Centre.

Analysts expect a maximum of seven developers to bid for the site, based on the previous receptions of nearby GLS sites.

The site for Canberra Residences, which is closer to Sembawang MRT station, fetched $131.7 million, while another bigger condominium site at the junction of Yishun Avenue 2 and Yishun Avenue 7 was sold for $229.4 million. Both sites were awarded in June last year.

Mr Li Hiaw Ho, CBRE Research’s executive director, said: ‘Therefore, we expect that the subject site will fetch between $154 million and $165 million.’

Tenders for this site will close on May 26 and the Jalan Loyang Besar one close on May 10.

A site at the corner of Sengkang East Drive and Buangkok Drive is also on sale.

It has an area of 210,426 sq ft and is zoned for an executive condominium. An estimated 550 units can be built.

Knight Frank estimates the plot could attract up to six bids, with a top bid of around $240 million. The tender for the site closes on June 2.

Separately, a 60-year leasehold industrial site on Ang Mo Kio Street 62 has attracted 13 bids, with Sim Lian Development placing the highest bid of $128.1 million.

This bid translates to $170 psf per plot ratio, and is 1.9 per cent higher than the second-highest bid of $125.8 million, submitted by a Qinghe and Qingdao Construction consortium.

CBRE noted that the parcel, which has a maximum GFA of 752,210 sq ft, is the first industrial land tender under this year’s GLS programme to close, and is also the first industrial site in Ang Mo Kio to be launched for tender in the last 10 years.

Mr Li added that the site is located near Yio Chu Kang MRT station, connecting it to the rest of the island, and that the nearby Ang Mo Kio Town Centre would also provide amenities for the workers.

Source: Straits Times, 30 Mar 2011

THE Urban Redevelopment Authority (URA) yesterday launched a commercial land parcel in Paya Lebar Central for sale by public tender – the first site offered for sale in that area.

The 99-year leasehold site, which is at the junction of Paya Lebar Road and Eunos Road 8, has a site area of 159,870 square feet and a maximum gross floor area (GFA) of 671,450 sq ft.

In line with the plan for Paya Lebar Central to be a major commercial centre, the upcoming development on the site will have to set aside at least 80 per cent of the total GFA for office use. The remaining GFA can be allocated for additional office use or other uses permitted under the commercial zoning.

‘The site is envisaged to be developed into a good-quality office development that would appeal to businesses that do not need to be located within the city centre, as it is a mere 10-minute drive from the central business district,’ said URA.

The government’s vision is for Paya Lebar Central to become a bustling commercial centre, with a mix of office, retail, hotel and public spaces. The precinct has about 12 hectares of land available for development and a potential commercial floor space of more than five million sq ft in total.

Analysts expect a top bid in the range of $500-600 per square foot per plot ratio (psf ppr) for the plot. The site is expected to draw good interest from developers as it offers a choice alternative for tenants who do not need to be in the central business district but find Tampines and the business park in Changi to be too far.

‘This site is anticipated to receive warm interest from developers due to its strategic location and the promising outlook for the office property market, which is poised for an overall sustained gradual rental recovery supported by broad-based incremental business expansion plans,’ said Ong Kah Seng, Cushman & Wakefield senior manager for Asia-Pacific research.

Observed DTZ South-east Asia research head Chua Chor Hoon: ‘With the office market on the rise, the successful tenderer stands to benefit from higher rents when the development is completed in a few years’ time.’

This land parcel is next to Paya Lebar MRT station, which serves the Circle and East-West MRT lines. The tender for the site closes at noon on April 21, 2011.

Source: Business Times, 28 Jan 2011

99-year plot is near MRT, schools and lifestyle amenities

AN ATTRACTIVE condominium site within walking distance of Bishan MRT station is being offered for sale, with the prized location set to attract strong bids.

‘It’s going to be hot and it’s down to the location,’ Credo Real Estate executive director Tan Hong Boon predicted.

About 590 units of a private condo can be built on the 99-year leasehold plot, which is also near ITE College Central (Bishan) and Bishan Stadium. The area of the site is 11,997 sq m.

Property experts said the tender for the parcel, to be launched in about two weeks’ time, is expected to draw keen interest from developers.

Mr Tan said that apart from its proximity to the MRT station, the site is centrally located in Bishan, near good schools and supporting lifestyle amenities.

The plot was available for application for purchase under the Reserve List of the Government’s land sales programme.

Under the list, an interested developer can submit an application for a site with a minimum offer price.

If the price is deemed accept-able, the Government will then put the site up for sale by tender.

In this instance, the minimum offer price was $189.93 million, the Housing Board, the agency selling the land, said yesterday.

Mr Ong Kah Seng, senior manager of Asia-Pacific research at Cushman & Wakefield, expects about eight bids for the condo site, with the top bid between $450 and $480 per sq ft (psf) per plot ratio.

The selling price of condo units would range from $920 to $950 psf, he said.

Mr Ong suggested that securing this site could prove a strategic move for developers, given that there are neighbouring sites which have been flagged as reserve sites for future high-rise developments.

He explained that with an adjacent site and a few neighbouring ones slated for future high-rise homes, the developer that secures this site will have a head start in providing condos in the area.

The successful bidder ‘can even potentially expand to acquire the rest of the sites when they are subsequently available in the government land sales programme, thus an opportunity to have a territorial presence in this immediate vicinity’, he said.

The government land sales programme in the first half of this year will feature 30 sites that will be able to generate a record 14,300 residential units – more than the 13,900 units offered in the second half of last year.

‘The Government has and will be selling a large supply of new development sites, so home buyers will be spoilt for choice from the second half of the year onwards,’ said Mr Nicholas Mak, head of consultancy and research at property firm SLP International.

Source: Straits Times, 8 Jan 2011

MORE industrial sites are up for grabs under the government land sales programme for the first half of the year.

Four plots, two of them new, have been put on the confirmed list while seven are on the reserve list. They amount to a total of 17.67 ha of industrial space.

The Ministry of Trade and Industry (MTI) said last Friday that the supply has been replenished to meet demand for industrial land in the light of sustained economic growth. It has also reduced the project completion period for all industrial sites triggered or launched for sale from Jan 1 in order to speed up project completion times.

The sites on the confirmed list are in Ang Mo Kio Street 62, Fusionopolis Link, Irving Place and Woodlands Avenue 12.

Reserve list sites – four are newly introduced – are at the corner of Pioneer Road North and Soon Lee Road, in Gambas Avenue, Serangoon North Avenue 4 and at the corner of Kaki Bukit Road 4 and Bartley Road East.

In the second half of last year, two reserve list sites – in Ubi Road1 and at the corner of Pioneer Road North and Soon Lee Street – were sold.

Developers will note the other key announcement: the reduction of the eight-year project completion period.

Sites with a maximum permissible gross floor area of less than 50,000 sq m must be completed within five years, while those of 50,000 sq m and over must be finished within seven years.

The MTI said the change is to ensure a ‘more timely supply of industrial space to meet demand’.

The industrial sector’s outlook has been looking rosy. According to property consultant DTZ, the average monthly gross rent for ground-floor private industrial space grew 2.5 per cent to $2.05 per sq ft (psf) in the final quarter of last year.

Average monthly gross rents for upper-storey space are at $1.65 psf – up 3.1 per cent from the third to the fourth quarter, and 6.5 per cent ahead over the same period in 2009.

Industrial rents are also expected to continue to rise this year but at a more moderate pace.

Source: Straits Times, 3 Jan 2011

 NATIONAL industrial infrastructure developer JTC Corporation yesterday said it will launch a public tender for a 1.24 ha industrial site in Ubi on the reserve list.

This comes after it accepted an application from a developer to put the site on sale. JTC said that the developer has committed to a bid price of at least $29.38 million. It will launch the tender for the plot of land – made available for sale on Oct 30 last year through the reserve list system – in about four weeks.

The site is located between Ubi Road 1 and Ubi Ave 4, and is zoned for ‘Business 1′ use, which means it can house clean and light industry firms – which includes computer software development and printing and publishing companies.

The land has a maximum gross floor ratio of 2.5 and a lease period of 60 years. The successful developer must complete the project in 96 months.

Source: Business Times, 31 Dec 2010

Close fight for 1.7ha residential plot sees six bids at over $400 psf ppr

PROPERTY group Tuan Sing Holdings has come out on top – but only just – in a bidding war between 11 developers for a residential site in Seletar Road.

The firm offered $123 million for the 1.7ha plot – or $468 per sq ft (psf) per plot ratio (ppr), which was a touch ahead of Fragrance Group’s $464 psf ppr.

It was such a close fight for the site, which is part of the government land sales (GLS) programme, that six of the 11 bids came in over $400 psf ppr.

Other bidders – a mix of major and mid-sized developers – included Far East Organization, City Developments, EL Development and Malaysian firm SP Setia International.

Mainboard-listed Tuan Sing’s bid was 40 per cent higher than the lowest bid of $88 million – or $335 psf ppr – from Meadows Investment, a firm owned by Mr Neo Tiam Boon, executive director of local property and construction firm Tiong Aik Group.

Mr Ong Kah Seng, senior manager of Asia-Pacific research at Cushman & Wakefield, said the Tuan Sing offer was an ‘optimistic’ one.

The many big bids were due to ‘developers encouraged by the recent improvement in overall home-buying interest’, he added.

The fact that 11 developers were competing for the site also reflected significant interest from developers to replenish their land banks despite many GLS sites becoming available in the first half of next year, Mr Ong said.

It was also the highest number of bidders in a GLS tender since the site at the junction of Upper Serangoon Road and Pheng Geck Avenue went on the market in June.

The 99-year leasehold Seletar site is next to Far East’s The Greenwich project and in the Seletar Hills residential estate.

It has a maximum permissible gross floor area of about 263,000 sq ft and could yield about 270 units.

The upcoming project will be only the second new condo project in the Seletar Hills estate and so is likely to attract middle-income households and investors, say property experts.

Mr Nicholas Mak, head of consultancy and research at property firm SLP International, said that as the site can also be developed into landed housing, developers might have been drawn to the tender as strong demand for such housing is expected to continue next year.

Mr Li Hiaw Ho, executive director of CB Richard Ellis Research, expects a break-even cost of about $800 psf for the development.

He said investors might target staff at Seletar Aerospace Park, which will be fully completed in 2018. Shopping and communal facilities can be found in Ang Mo Kio and Sengkang new towns which are a short drive away, he added.

‘With the whole Seletar area currently being revitalised, and with The Greenwich achieving around $1,200 psf for the loft units and standard apartments being sold at $950 psf on average, the top bidder will be looking at launching at around the same price band,’ he added.

About 250 units of 319-unit The Greenwich – or 78 per cent – have been sold since August.

SLP’s Mr Mak estimates that the new Seletar units could go for between $1,080 and $1,180 psf.

Source: Straits Times, 15 Dec 2010

A NEW 16-storey condominium is set to come up near Punggol MRT station after a tender for a land site there closed yesterday with seven competitive bids.

Sim Lian Land and Sim Lian Development submitted the top offer for the land parcel at the corner of Punggol Central and Punggol Walk, according to the Urban Redevelopment Authority.

Their bid of $363 million for the 2.7ha site just topped the second-highest offer of $361.7 million. That bid was submitted by China-based Qingdao Construction (Singapore).

Next was Hong Leong Group’s Intrepid Investments with a bid of $321 million, while Keppel Land Realty tabled an offer of $318.8 million.

The partnership between FCL Topaz, Far East Civil Engineering and Sekisui House put in a $297 million bid, and Ho Lee Group’s Khai Wah Development sent in a $266.7 million bid. Allgreen Properties rounded up the list with a bid of $257.9 million.

Sim Lian’s offer works out to $406.30 per sq ft (psf) per plot ratio. The developer said yesterday that it plans to build a 16-storey project comprising 800 units.

The development will offer a mix of units ranging from two- to four-bedroom apartments and penthouse units, Sim Lian said. It is expecting to launch the project by the fourth quarter of next year.

The plot of land has a maximum permissible gross floor area of 888,905 sq ft, and an additional 4,489 sq ft to include the existing conservation building, Matilda House, located within the site.

Matilda House, which is to be conserved and restored as part of the development, is the only remaining historic bungalow in Punggol Town. The building can be restored for use as a clubhouse or for private residential use within the development.

CB Richard Ellis Research executive director Li Hiaw Ho said the historic building, a piece of history from old Punggol, would enhance the lifestyle of the project’s future residents.

Mr Li pointed out that the bids in the tender yesterday showed the keen interest that developers had in the site, which could be because of its proximity to an MRT station.

He observed that units at Oasis@Elias , a private condominium in Pasir Ris, were sold at $650 psf to $780 psf in the September to November period.

But nearby NV Residences fetched higher prices for the same period – between $830 psf and $910 psf – because of its proximity to Pasir Ris MRT station and White Sands shopping mall, said Mr Li.

He added that the top bid of $363 million for the Punggol site translates to a break-even cost of about $750 psf, and that the project may be able to fetch around $800 psf when it is ready for launch.

Source: Straits Times, 8 Dec 2010

CITY Developments (CDL) unit Grand Isle Holdings has emerged as the top bidder for an executive condominium (EC) site in Segar Road.

Yesterday’s tender results saw CDL’s top bid of almost $182 million, or $271 per square foot per plot ratio (psf ppr), coming in 15.5 per cent ahead of the second-highest offer of $157.5 million, or $234 psf ppr, submitted by EL Development.

Three other bids were submitted – Opal Star and Lum Chang Building Contractors sent in a joint offer of $128.3 million, Pinnacle Realty bid $120 million, and Sim Lian Land came in with the lowest tender at $113 million.

A CDL spokesman said the developer has plans to build a 15- to 17-storey EC on the 1,936 sq ft site and, if awarded, it would be CDL’s fourth EC project.

Previous ECs developed by CDL were The Esparis in Pasir Ris, The Florida in Hougang, and Nuovo in Ang Mo Kio.

Located in Bukit Panjang, the 99-year leasehold Segar Road site has a plot ratio of 3 and a maximum gross floor area of 5,806.6 sq ft. It can potentially yield an estimated 570 units.

Mr Joseph Tan, CBRE’s residential executive director, said CDL’s bid translates to a breakeven cost of $570 psf to $590 psf.

He added that there will be a market for the new EC project if it is priced

20 per cent to 25 per cent lower than nearby private condo Tree House, which sold at an average price of $830 psf in the second quarter of this year.

ECs are a hybrid of public and private housing with ownership and resale restrictions applying in the first 10 years, after which they are fully privatised.

Boasting private condo facilities, they are an attractive housing option for buyers who meet the eligibility criteria, including a monthly household income ceiling of $10,000.

Under the current Residential Property Act, foreign developers are subject to the stipulated project completion period of five years.

This rule, however, does not apply to local developers.

Source: Straits Times, 3 Dec 2010