Category: Tender

Nov 05 2010

Woodlands site: Far East puts in top bid amid six-way battle

PROPERTY giant Far East Organization has lodged the top offer in a six-way bidding battle for a Woodlands site.

The firm tendered $105.1 million for the 99-year leasehold plot at the junction of Woodlands Avenue 1 and Rosewood Drive. That works out at $333 per sq ft (psf) per plot ratio.

Next up was EL Development on $100.9 million. BS Capital, Sim Lian Land, TID Residential and Ecco Development, with the lowest bid of $73 million, were also in the hunt.

Mr Li Hiaw Ho, executive director of CB Richard Ellis Research, said the six bids showed that developers are fairly confident about the site. Demand is likely to come from potential HDB upgraders and investors who want to tap the expatriate market as the plot is about a 10-minute walk from the Singapore American School.

The 21,000 sq m site has a maximum gross floor area of 29,339 sq m and can be used for strata landed housing or condominium units. About 265 homes could be built, depending on the type of development, said the Housing Board yesterday.

Mr Chng Kiong Huat, Far East’s executive director of development and planning, said the firm expects to build a five-storey condominium. ‘(It) will incorporate some townhouses designed to complement the low-rise set-up. Buyers will have a choice of one- to four-bedroom units and townhouses, with private terraces, roof gardens and dedicated carpark spaces,’ he added.

Far East’s bid translates to a break-even cost of $650 to $700 psf with the project likely to be launched above $800 psf, Mr Li said. The firm has built a few projects in the area, including private condo Casablanca and the New England-style houses in Woodgrove Estate.

In the sub-sale market, units at the nearby Rosewood Suites, which is still being built, sold at $650 to $700 psf in the third quarter. Units in Woodgrove Condominium transacted at $560 to $675 psf in the secondary market while Casablanca apartments went for $620 to $750 psf.

Source: Straits Times, 5 Nov 2010

Nov 03 2010

Chip Eng Seng tops bid for DBSS site in Bedok

 CHIP Eng Seng Corporation yesterday put in the highest bid for a public housing site at Bedok Reservoir Crescent.

The tender for the site – launched by the Housing & Development Board under the design, build and sell scheme (DBSS) – closed yesterday. Chip Eng Seng beat five other participants with a bid of $112.69 million or $224 per square foot per plot ratio (psf ppr).

The second highest bidder was Kwan Hwee Investment, linked to Low Keng Huat (Singapore). Its offer was $109.89 million or $219 psf ppr – just 2.5 per cent below Chip Eng Seng’s.

Other developers which took part in the tender included Hoi Hup Realty, in partnership with Sunway Developments and SC Wong Holdings; Sim Lian Land; and a unit of Ho Lee Group.

A joint venture between United Engineers Developments and Maxdin Pte Ltd submitted the lowest bid of $88.2 million or $176 psf ppr.

This DBSS project will be Chip Eng Seng’s first. The plot measures 179,400 sq ft, has a maximum gross floor area of 502,400 sq ft, and carries a lease term of 103 years (which takes into account a two-year construction period).

HDB estimates that 430 units can be built on the site. The estate will be between two green lungs – Bedok Reservoir Park and Bedok Town Park. In the vicinity, the new Bedok Town Park MRT station on Downtown Line 3 will be completed in 2017.

SLP International Property Consultants executive director Nicholas Mak estimates that Chip Eng Seng’s bid could translate to a breakeven cost of about $430-470 psf.

A five-room flat in the project could be launched at about $590,000-620,000, he added.

Chip Eng Seng closed unchanged on the stock market yesterday at 40 cents.

Source: Business Times, 3 Nov 2010

Nov 03 2010

DBSS site at Bedok Reservoir draws six bids

THE tender for a land parcel at Bedok Reservoir Crescent, slated for public housing, closed yesterday with six bids received.

CEL Development came out tops with a bid of $112.6 million, or $224.3 per sq ft per plot ratio (psf ppr) for the site, which could yield 430 homes under the Design, Build and Sell Scheme (DBSS). Analysts said the top bid was more subdued than bids in the past.

The second highest bid came from Kwan Hwee Investment, at $109.8 million or $218.7 psf ppr, which was just 3 per cent lower than CEL’s. This was followed by a joint bid by Hoi Hup Realty, Sunway Developments and SC Wong Holdings, at $107.2 million or $213.3 psf ppr. At the bottom was a joint bid from United Engineers Developments and Maxdin at $88.2 million, or $175.5 psf ppr.

The site is located about 10 minutes’ walk from Bedok Town Park MRT station, which is expected to be completed in 2017.

Mr Nicholas Mak, executive director of SLP International Property Consultants, said the top bid could translate to a break-even cost of about $430-$470 psf. He found the bids varied across a narrower range, compared to the previous tender for a DBSS site at Tampines Avenue 5/Central 8, where the top bid was $261 psf ppr.

But he doubts that the sites left available for sale before the end of the year, at Upper Serangoon Road and Yuan Ching Road, will fetch higher bids.

‘They do not enjoy a close proximity to the nearby MRT station compared to this site at Bedok Reservoir Crescent,’ he said.

Source: Straits Times, 3 Nov 2010

Oct 29 2010

Record bids for Sembawang land

Fourteen plots hotly contested, with 97 bidders registered

BIDDING was fast and furious yesterday as 14 land parcels along Sembawang Road earmarked for landed homes sold for $134.55 million, with prices hovering at record highs for the area. The hotly contested sites attracted an average of 50 bids each.

Analysts say a key factor for the keen interest was newly introduced flexible guidelines on building designs.

For instance, basements may protrude above the ground to let in more light.

Nine of the land parcels are being pilot-tested for the modified set of landed housing guidelines.

The auction by the Urban Redevelopment Authority (URA) of Phase Three of Sembawang Greenvale – right on the Johor Straits – attracted strong interest, mostly from smaller developers and individuals who turned up at the URA Centre in Maxwell Road.

A total of 97 bidders registered, more than six times that for the auction held for Phase Two in April 2008, which drew only 16 bidders.

Prices of the latest plots were $546 per sq ft (psf) of land area on average – more than double the previous phase’s average of $223 psf, testament to the strong landed housing recovery.

The URA sold another 12 plots in nearby Phase One in October 2007 for about $285 psf on average.

The 99-year-leasehold plots – able to yield about 115 landed homes – include individual bungalow lots, small streetblock parcels each able to yield four to 17 terrace and semi-detached houses, and one parcel for a strata landed housing development.

Boutique property developer JBE Holdings, whose projects include Luxe Ville at Pasir Panjang Road and The Luxe at Handy Road, emerged tops, sweeping five sites – able to yield 39 terraces – for $43.35 million, or at $514 psf.

However, it also lodged the lowest winning bid of $443 psf, which worked out to a $7.16 million bid, for a 1,500sqm site on Penaga Place. The plot is able to yield six terrace units.

Fragrance Homes clinched the largest 3,796sqm site on Wak Hassan Drive, which can be developed into strata-landed or landed housing, for $26.15 million – a whopping $640 psf, the highest psf price.

Other successful bidders include Goodland Homes, MCS Development, Techcom Construction and Trading, and Sunway Developments.

However, the high prices also meant that some potential property investors went away empty-handed.

BuildTech Construction’s W.P. Lim said he decided to try his hand at the auction as prices in the landed homes segment have skyrocketed in the past year. ‘I was hoping to be able to develop some of the smaller sites to get some margins but prices are too high now, they are double that of the last round,’ he said.

Experts say that the pent-up demand for landed homes, coupled with the limited supply, contributed to the strong bidding.

SLP International Property Consultants executive director Nicholas Mak that with the average price of landed properties rising by some 25 per cent since April 2008, developers are very confident of the landed housing market next year.

‘Another factor that contributed to the fierce bidding today is the new…development guideline for landed housing, which allows the developer greater flexibility in the design and development, and possibly some cost saving as well,’ he added.

Under the new guidelines, the URA will fix only the overall size of the house and do away with guidelines on internal features. Architects will gain more leeway in terms of the building’s interior dimensions.

For instance, existing guidelines for the sites will be relaxed so homes built there can be four storeys, up from a limit of three now. Other options include loftier living rooms and more compact bedrooms.

According to URA data, landed home prices have surged by 24 per cent since the start of this year.

Source: Straits Times, 29 Oct 2010

Oct 29 2010

Bullish bids for Sembawang landed plots

Most winning offers for the 99-year leasehold sites range from $500-$600 psf

A GOVERNMENT land auction of 14 landed housing plots in Sembawang drew fierce bidding and bullish top offers as developers demonstrated their confidence in the landed housing market.

Most of the winning bids for the 99-year leasehold sites fell within the range of $500-$600 per square foot (psf), more than double the price that adjacent sites went for in two previous rounds of land auctions held in October 2007 and April 2008.

Yesterday, 11 out of the 14 sites that went under the hammer sold for more than $500 psf, with two sites even selling for $620 psf and $640 psf each. The sites sold yesterday were offered as phase three of Sembawang Greenvale at Sembawang Road and Wak Hassan Drive.

By contrast, data compiled for BT by Savills Singapore showed that in the last two rounds of public auctions, 22 out of the 23 sites offered under phases one and two of Sembawang Greenvale sold for $150-$300 psf. The remaining site was sold for $327 psf.

The Urban Redevelopment Authority (URA) also said there were 97 registered bidders yesterday, compared to just 16 at the last auction in April 2008.

Nicholas Mak, executive director of SLP International Property Consultants, noted that since April 2008, the average price of landed properties has increased by some 25 per cent while the average price of non-landed houses rose by only about one-tenth of that amount. And in the past one and a half years, the demand for landed houses had also increased strongly. ‘The pent-up demand coupled with the limited supply contributed to the strong bidding in today’s auction,’ Mr Mak said.

The new envelop control development guideline for landed housing, which allows developers greater flexibility in the design and development of projects – and possibly some cost savings as well – could have also attracted more interest to the sites, he added.

All of the sites that went under the hammer yesterday were hotly contested with each plot drawing 50 bids on average. One site even drew 159 bids.

A large number of would-be bidders walked out of the packed auditorium at URA Centre after the first two sites were sold, citing the high prices. But most developers were good natured and often applauded the winning offers.

JBE Holdings, which won five of the 14 sites on offer, was one of the most competitive bidders. The company, which is owned by Christina Sui Fong Fong, has built Luxe Ville at Pasir Panjang Road, The Luxe at Handy Road and terrace houses in Sembawang.

Other successful bidders included Fragrance Group. The listed property group won two sites, including the most expensive – it paid $26.15 million for a 40,860 sq ft plot on which a potential 20 landed homes can be built.

Analysts expect prices of landed homes to climb more than that of non-landed housing next year on the back of limited supply. Noted one market watcher: ‘We can be sure that prices in that part of Sembawang, at least, will climb after today’s bids.’ Presently, 99-year leasehold landed homes near Sembawang Greenvale are selling for around $700-$900 psf.

Source: Business Times, 29 Oct 2010

Oct 27 2010

Punggol residential site with historic house put up for sale

URA also launches another 99-year leasehold plot at Seletar Road
A HOUSE in Punggol built in 1902 by the father of the late legal eagle Howard Cashin has been put up for sale as part of a 99-year leasehold private residential site launched for tender by the Urban Redevelopment Authority yesterday.

The single-storey house will have to be conserved and restored for use as a clubhouse or private residential use within the new proposed development on the site. Matilda House was acquired by the government under the Land Acquisition Act in the mid-1980s and gazetted as a conservation building on Feb 21, 2000.

The house was built in 1902 by Alexander Cashin, the father of Howard Cashin and son of Joseph Cashin, who arrived in Singapore in the 1840s. Starting out as a lawyer’s clerk, Joseph Cashin made his fortune investing in legal opium farms in the 1880s and later, in real estate. Cashin Street, next to Bras Basah Complex, was named after him.

The Cashin family was one of the oldest Irish families to have settled in Singapore and owned several other houses as well as about 400 shophouses here.

Matilda House is named after Mr Joseph Cashin’s wife. Mr Alexander Cashin built it as a present for his wife, according to an article in October 2002 in The New Paper. The Punggol seaside bungalow served as a weekend retreat for the family. Sited on the Punggol seafront, it was surrounded by orchards on all sides. The Cashin family also owned about 350 hectares of land in the area on which there were also rubber and coconut plantations.

The house today is in pretty rundown condition sparking some talk about it being spooked.

URA said that Matilda House is an example of an early-style tropical bungalow. Its distinctive features include entrances on both sides of the main building, raised floors, timber lattice and louvred windows and transoms to allow cross-ventilation. It is the only remaining historic bungalow in Punggol Town.

The single-storey Matilda House has an existing gross floor area of about 4,488 sq ft. In addition to this, the successful bidder of the 2.7 hectare site (which includes Matilda House) can develop a total 888,904 sq ft gross floor area of new buildings. This can generate a condominium with about 810 units.

Credo Real Estate executive director Ong Teck Hui describes the plot as a ‘plum suburban site with many things in its favour – proximity to Punggol MRT Station, the bus interchange and the proposed town centre, with Matilda House thrown in for uniqueness’.

Based on current sentiment, the site could draw six to 10 bidders with top bids of around $400 to $450 psf per plot ratio (psf ppr), or $355-400 million in absolute quantum.

SLP International Property Consultants executive director Nicholas Mak predicts bids of about $380-420 psf ppr, with five to nine bids expected.

The tender for this site closes on Dec 7.

URA yesterday also launched for tender another 99-year leasehold plot at Seletar Road, slated for development into condominium/flats (up to five storeys) or landed housing/strata landed housing (up to two storeys). If developed into a condo, the 1.7 hectare plot can generate about 270 units.

The site is next to a plot awarded to Far East Organization at a state tender that closed in September last year at $376 psf ppr. Far East is developing Greenwich V (comprising 35 shop units) and The Greenwich, a 319-unit condo, on the site. It released the condo in early August and to date has sold 233 units.

Credo’s Mr Ong notes that caveats for The Greenwich have been lodged at about $1,300-1,400 psf for smallish units and $1,000-1,100 psf for more normal-sized apartments.

Mr Ong observed that while the latest site also enjoys a good location in the Seletar Hills area, which is in good demand and which will benefit further from the aerospace hub, ‘it is in a way ‘landlocked’, sandwiched by landed estates, the Greenwich development and a SingTel telephone exchange’.

He predicts four to eight bidders going by current sentiments, with top bids in the $550-600 psf ppr range (or about $145-158 million).

Mr Mak says the site may attract four to seven bids with top bids coming in at $320-360 psf ppr. ‘Some of the bidders could be medium-size developers as the absolute land cost is not excessive,’ he added.

The tender for this site closes on Dec 14.

Source: Business Times, 27 Oct 2010

Oct 22 2010

Six bids for Pasir Ris executive condo site

AN EXECUTIVE condominium (EC) site in Pasir Ris has drawn healthy interest, with six bids put in by developers by the time the tender closed yesterday.

The 15,142 sq m site, at the junction of Pasir Ris Drive 1 and Elias Road, is expected to yield about 320 housing units.

The top bidder was ChoiceHomes Investment and CEL Developments at $89.88 million or $263 per sq ft (psf).

Buying interest was strong when the first new EC to go on sale in five years, Esparina Residences near Buangkok MRT station, was launched earlier this month.

ECs are the grandest form of public housing and include some condo facilities. Like other HDB flats, they are subject to a minimum five-year occupation period. Then they can be sold only to Singaporeans and permanent residents. They become private property after 10 years, and can then be sold to foreigners.

The second highest bid for the Pasir Ris site, just a notch lower, was EL Development’s $89.33 million or $261 psf.

The two lowest were below $80 million. Ecco Development’s $61 million or $178 psf offer was the lowest.

Hoi Hup Realty, Sunway Developments and S.C. Wong Holdings jointly bid for the land at $78.87 million or $231 psf.

The bids show developers are fairly confident about the site, said executive director of CBRE Research Joseph Tan.

He added that the site is about 15 minutes’ walk from White Sands mall and Pasir Ris MRT station and bus interchange.

Knight Frank senior manager of consultancy and research Png Poh Soon told The Straits Times that demand for ECs was still good, ‘in particular for this site’, given the favourable reception of nearby private condo NV Residences.

Mr Tan added: ‘Given that NV Residences – a private condominium – has sold 400 units at the median price of $869 psf since September, there will be a market for this new EC project if it is priced at a differential of 20 to 25 per cent lower.’ He expects the break-even cost for development to be $560 psf to $600 psf.

Consultants also say the bidding for the Pasir Ris site reflects growing caution in the property market.

Head of research at Jones Lang LaSalle in Singapore, Dr Chua Yang Liang, said developers have become more realistic given moderating market sentiment.

‘When the market is bullish, the variation between the top and second bidders can be quite large,’ said Dr Chua.

The relatively restrained bids may in part be because the site was released on Sept 8, soon after the Government’s cooling measures, senior manager for Asia-Pacific research at Cushman & Wakefield Ong Kah Seng told The Straits Times.

‘Home buyers are on the sidelines and developers are increasingly cautious in this period, which is less than two months from the announced measures,’ he said.

He added that in the first half of this year, land prices for ECs reached record highs to average more than $300 psf.

The HDB said it will announce the successful bidder within two weeks.

Source: Straits Times, 22 Oct 2010

Oct 19 2010

Soilbuild top bidder for Yishun site

SOILBUILD Group Holdings has emerged as the top bidder for a 60-year industrial plot at Yishun St 23/Ave 9.

The plot, zoned for Business 2 use, received four bids at a state tender which closed yesterday.

Soilbuild’s top bid of slightly over $64.01 million works out to $51.10 per square foot per plot ratio (psf ppr).

This is lower than bids of about $71 psf ppr and $76 psf ppr fetched for two smaller neighbouring plots (zoned Business 1) which were awarded to OKH Management and Soilbuild itself respectively at separate state tenders which closed in April this year.

Colliers International director (industrial services) Tan Boon Leong nonetheless considered the top bid at yesterday’s tender as a competitive one, pointing out that it was for a site which is three times as large as the two earlier plots.

A larger site would typically entail a bigger lump sum investment and investors would usually tend to offer a lower unit land price in terms of psf ppr, all other factors being equal, he added.

As well, the latest plot has a much shorter project completion period of 36 months, compared with 96 months for the earlier sites.

This gives the successful bidder less scope to delay its project commencement with an eye to ride any upcycle in the industrial property market, Mr Tan added.

The latest plot is designated for development into a ramp-up factory with direct vehicular access to all units; in addition, the developer is required to build a minimum number of fairly large-sized units, which would clip its ability to maximise selling prices for the end units.

‘And there’s another limitation as with effect from July 1, 2010, saleable carpark lots have been included in the gross floor area computation for industrial developments – which limits the amount of strata industrial space left for sale in a development,’ Mr Tan said.

Soilbuild’s top bid at yesterday’s tender was 12.3 per cent higher than the next highest offer by Ho Lee Properties ($57 million or $45.50 psf ppr).

Winteng Development and KNG Land also took part in the tender, bidding $55.38 million and $47.62 million respectively.

Source: Business Times, 19 Oct 2010

Oct 12 2010

DBSS site at Upper Serangoon up for bidding

THE Housing and Development Board (HDB) is putting up for sale today a public housing site at Upper Serangoon Road under the Design, Build, and Sell Scheme (DBSS) – the third piece of land to be sold under the scheme this year.

HDB also said that a DBSS site at Yuan Ching Road and Corporation Drive will be up for tender in November this year, with an estimated yield of 580 units. It added that more sites will be put onto the market if there is sustained demand.

This means that at least four DBSS sites will be launched by the end of this year – the highest number sold in a particular year since the scheme was launched in 2005.

HDB said in August that it will release more land for tender for executive condominiums and the DBSS, where private sector operators develop public housing projects.

But interest in such sites might be muted given the recent property cooling measures, and the expected economic slowdown.

The Upper Serangoon site, for instance, is expected to see just modest interest, says at least one market watcher.

The site along Upper Serangoon Road is a 103- year land parcel that is about 215,278 sq ft in size, and has a maximum allowable gross floor area of 753,474 sq ft. It can accommodate an estimated 630 units. The tender will close at 12 noon on Nov 30.

While the site appears to be situated in a reasonably attractive location, Ong Kah Seng, senior manager of research in the Asia-Pacific at Cushman & Wakefield, said: ‘The DBSS site at Upper Serangoon is likely to receive modest buying interest from developers, reflecting increasing cautiousness from developers.’

The site, he said, is likely to see between three to five bids, with the highest bid likely to be between $200-230 per square foot per plot ratio (psf ppr).

Source: Business Times, 12 Oct 2010

Oct 08 2010

Petir Road residential site draws nine bidders

INTEREST in a residential development plot at Petir Road, right next to the sold-out Tree House project, has been strong, with nine bids submitted for the site.

The bid prices indicate that developers are optimistic about the location, given that the 429-unit Tree House was quickly snapped up in the second quarter, said CBRE Research director Leonard Tay.

‘Tree House showed there’s good demand for this location, even though it is not near any MRT station,’ said DTZ’s South-east Asia research head, Ms Chua Chor Hoon.

Still, Wing Tai’s Wincheer Investment topped the tender with a bid of $177.4 million – or $345 per sq ft per plot ratio – that is within expectations. This is just 2 per cent above Sim Lian Land’s bid of $173.8 million, or $338 psf ppr.

An industry expert had expected bids ranging from $320 to $355 psf ppr, which works out to between $164.5 million and $183 million.

The 2.3ha site was launched for sale a day after the Government introduced measures to curb property speculation on Aug 30.

On that same launch day, four other sites – all of which are also near projects that have been launched in the past year or so – were made available for sale should developers be keen on them.

The 99-year leasehold Petir Road site has a maximum gross floor area of 47,763 sq m and can yield about 430 flats.

Other bidders include Low Keng Huat’s Kwan Hwee Investment and Partner Vision Holdings’ Plan Achieve.

City Developments – which is developing Tree House together with Hong Realty – made its bid through Sunmaster Holdings. It came in fifth with a bid of $167.6 million or $326 psf ppr.

Allgreen Properties put in the second-lowest bid of $140.9 million or $274 psf ppr, while construction firm Teambuild Land made the lowest bid of $103 million or $200 psf ppr.

Mr Tay said the top bid translates to a break-even cost of $680 psf to $700 psf and units in the new residential project may sell for above $800 psf. DTZ’s Ms Chua said the successful developer could price the units at some $800-$830 psf, close to the average launch price of $830 psf at the Tree House in April this year.

Colliers International’s director of research and advisory, Ms Tay Huey Ying, said the top bid came in within the market range seen for recent tenders. ‘In general, developers are more cautious now as their bids are more subdued,’ she said.

CBRE Research noted that units in Mi Casa, a new project at Choa Chu Kang Avenue 3, sold for $700-$850 psf in the July-September period this year. And in the resale market, units in the 12-year-old Maysprings nearby sold at between $560 psf and $760 psf over the same period.

The Petir Road site is on the south-eastern fringe of Bukit Panjang HDB estate, about 10 minutes’ walk from the Pending LRT station. When the Downtown Line 2 is completed in 2015, the nearest station will be Hillview station a short drive away, said CBRE Research.

Source: Straits Times, 8 Oct 2010

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