Chinese Developer pour in S$1B bid for Queenstown GLS site

A huge residential plot at Stirling Road launched by the government drew a record price of over S$1 billion in a joint bid from Logan Property Holdings (LPH)and Chinese conglomerate Nanshan Group. LPH is a new Hong Kong-listed entrant to Singapore market, originating from China’s Guangdong province

The bid of S$1,050.7 per square foot per plot ratio (psf ppr) on gross floor area is very bullish for for the 99-year-leasehold site thus setting a new record in the Queenstown area.

The site – despite its 2.11-ha size and heavy financial commitment required – saw a healthy demand of 13 bidders in total. The 227,000 sq ft plot near Queenstown MRT Station is expected to yield 1,110 units with prices projecting from S$1,700 psf upwards.

This bid signals a determination to enter the Singapore market. The top bid by the Chinese consortium is 8.3 % higher than the next highest bid tabled by MCL Land, and is 20.6 % higher than the S$871 psf ppr that MCC Land paid in June 2015 for the land parcel for Queens Peak. Competition was fairly stiff with close to half of the tenderers bidding in excess of S$900 psf ppr for the site, she added.

LPH has been studying the Singapore market for a while and believes “this is the right time to enter Singapore”.

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Toh Tuck Site attracted overwhelming number of bids

An overwhelming 24 bids were submitted for the tender of a residential plot in Toh Tuck Road — the second highest number of bids submitted in a residential government land sales (GLS) tender since 2009, when the tender for a parcel in Westwood Avenue attracted 32 bids.

Malaysian property developer SP Setia International put in the highest bid at S$265 million — S$939 per square foot per plot ratio (psf ppr). In second place was Singhaiyi Investments with a bid of S$260.2 million (or S$922 psf ppr); and in third place, Centrex Developments with a bid of S$250.9 million (or S$889 psf ppr).

In November 2012, World Class Developments, a unit of Aspial Corporation, won the tender with the highest price of 23 bids for an Upper Bukit Timah plot. The 60-year leasehold was developed into the “retirement resort”, The Hillford.

The 18,721.4 square metre (sq m) site can yield a maximum gross floor area of 26,210 sq m, or about 325 units — a manageable size for property developers. SP Setia plans to build a five-storey 320-unit development on the plot.

The top bid translates to a break-even price of about S$1,450 psf, and launch price of about S$1,600 psf.

Hunger for sites among developers and an expectation of a turnaround in the market are possibly the key factors that intensified the bidding, besides the attractiveness of the site and the affordable capital outlay. The recent easing of cooling measures and the positive reading of the Q1 2017 flash estimates are possible underlying contributory factors.

Three land sites in Jurong West, Woodlands and Holland Road to be released

Three land sites, that can yield about 1,500 private housing units, will go on sale this month under the second half of the Government Land Sales (GLS) programme.

The release – which will be in Jurong West, Woodlands and Holland Road – is expected to give home buyers more choice for private housing, according to a joint statement released by the Urban Redevelopment Authority (URA) and Housing & Development Board (HDB) today (Dec 5).

A residential site at Jurong West St 41 was released for sale today by the URA, while the HDB will launch an Executive Condominium site at Woodlands Avenue 12 for sale on Dec 16. Both sites are under the confirmed list. The tender closing dates for the land parcels at Woodlands Avenue 12 and Jurong West Street 41 are Feb 12 and March 10 respectivey.

A commercial and residential site at Holland Road on the reserve list, was also made available for sale by the URA today.

The mixed-use and pedestrian-oriented development at Holland Road will offer more retail and dining options. It is expected to “enhance the area’s buzz and provide more residences for people who wish to live in the heart of Holland Village” as well as add to the vibrancy of Holland Village “as a great place to live, work and play”, the statement said.

The statement added that a network of pedestrian streets and public spaces will connect with Holland Village’s surrounding lorongs and housing estates. “The new development will build on and reinforce the continued success of Holland Village while creating new community spaces for people to gather and interact,” it said.

http://www.todayonline.com/singapore/three-land-sites-jurong-west-woodlands-and-holland-road-be-released

Upper Serangoon mixed-use site draws top bid of S$276.8m

Despite the slow property market, a mixed-use land parcel in Upper Serangoon Road has drawn a better-than-expected top bid of S$276.8 million in a tender contested by 11 firms and consortiums, attesting to the attractiveness of such sites.

The bid placed by Asset Legend at the close of tender yesterday for the 108,685 sq ft site was 15 per cent more than the second-highest offer by SL Capital Ventures at S$240 million and 60 per cent higher than the lowest bid by KBD Ventures at S$172.7 million, said a statement released by the UrbanRedevelopment Authority (URA).

On a per square foot per plot ratio (psfppr) basis, the 11 bids ranged from S$529.70 psfppr to S$848.80 psfppr.

While the number of bids was in line with what property analysts had forecast, the top bid surpassed their expectations. Mr Eugene Lim, key executive officer of ERA, had projected a top bid of around S$750 psfppr.

The 99-year-lease site, located near Kovan MRT station, is for residential and first-storey commercial use. Launched under the Confirmed List of the Government Land Sales (GLS) by the URA, it has a maximum gross floor area of 326,060 sq ft and can yield an estimated 340 housing units.

Mr Chris Koh, director of Chris International, said the interest shown in the tender is a sign that developers are keen to bid for mixed-use sites.

“Developers have the confidence to bid for the site as it is a mixed development. For a site like this, the commercial units will typically attract buyers first and this will then have a spillover effect on buying interest for the residential units,” Mr Koh said.

Thus, bidders were expecting that the development could attract a wide range of buyers, he added.

Mr Lim said: “Asset Legend could be bullish about the site’s prospects because of its proximity to Kovan MRT Station, and its main-road frontage, which works well for the commercial units that have to be built on the first storey.”

The top few bids also indicated that there are developers who have enough financial reserves to selectively participate in tenders.

“There are developers who have accumulated a bit of wealth when the market was still buoyant. They are waiting for the right opportunities to place bids,” said Mr Koh.

The tender period for the site was extended by two weeks until yesterday to allow potential bidders to take into account new construction requirements.

Introduced by the Building and Construction Authority (BCA) on Nov 1to improve the industry’s capabilities and productivity, the requirements include higher minimum Buildable Design and Constructability standards, more use of prefabricated components and the adoption of productive technologies in GLS projects.

Mr Lim noted that the Upper Serangoon Road parcel is the first GLS site that has to meet the new requirements, which the winning bidder will have to consider when pricing the units.

“As this is a new move, the economies of scale have yet to be tested and the break-even price for this project could be higher as it is the first adopter of the new requirements,” he said.

http://www.todayonline.com/business/property/upper-serangoon-mixed-use-site-draws-top-bid-s2768m?singlepage=true

2 new sites offering 1000 units in Upp Serangoon and Queenstown

Two large development sites in Upper Serangoon and Queenstown – able to yield 1,000 homes in all – were released by the Government on 25 September 2014.

A mixed residential-commercial plot in Upper Serangoon has been put up for tender as part of the confirmed list of the Government Land Sales (GLS) programme for the second half of this year.

The Queenstown residential plot in Dundee Road has been made available on the reserve list, which means it will not go to tender unless a developer submits a bid acceptable to the Government.

Experts expect stronger response from developers for the Upper Serangoon site. The roughly 10,000 sq m, 99-year leasehold site can be developed into a 340-unit project, with commercial units on the first storey.

It is in an area with “abundant amenities” – with Kovan City and Heartland Mall, as well as Serangoon Junior College and Kovan MRT station, nearby, said Mr Ong Teck Hui, national director of research and consultancy at Jones Lang LaSalle.

“The ability to have commercial units on the first storey will be an added attraction, although the strata retail market has also been slowing.”

The Upper Serangoon site is smaller than the commercial and residential zoned site in Meyappa Chettair Road, also in the Serangoon area, which was the subject of a 15-bid tender that concluded last month.

“The quantum size may therefore be more digestible to developers,” said Mr Steven Tan, managing director of OrangeTee.

But potential bidders will have to be mindful that the development at the Meyappa Chettair site could be launched about the same time as this one, competing for the same group of buyers, said Mr Nicholas Mak, executive director of research and consultancy at SLP International Property Consultants.

Mr Mak added that the triangular shape of the 99-year leasehold site could make it challenging to develop, as is the fact that it fronts two busy roads, Upper Serangoon Road and Tampines Road.

Experts expect about 10 bidders for the site, with a winning bid of between $650 and $750 per sq ft per plot ratio.

But they are uncertain if interest in the 10,500 sq m Queenstown site, able to yield 645 units, will be strong enough to trigger a tender.

Mr Tan said sufficient short-term supply from new launches in the vicinity – including Alexandra and Tiong Bahru – means that it is unlikely developers will be immediately interested.

Apart from the challenging residential market, nearby Commonwealth Towers has more than 500 units unsold, experts noted.

“The demand in the mid-tier property market has softened, compared with a year ago. This may deter developers from triggering the tender of this site,” said Mr Mak.

– See more at: http://business.asiaone.com/news/govt-offers-2-more-sites#sthash.8vSlETkN.dpuf

Bids for residential land sites expected to be conservative

http://www.channelnewsasia.com/news/business/bids-for-residential-land/1310356.html

Sales of new private homes, excluding executive condominiums (ECs), are down by about 55 per cent in the first half of 2014, compared to a year ago. According to figures from the Urban Redevelopment Authority, some 4,400 units were sold, down from 9,950 units in the first half of last year. Analysts say the weaker buying sentiment, coupled with the rising number of unsold units in the market, have led developers to be more conservative with their land bids.

Mr Lim Yong Hock, Key Executive Officer at PropNex, said: “The location itself, if there are many other plots that are available or there are also other projects that are launching, the developer would also be very cautious and make sure they don’t over-commit, and make sure that the price they bought at will be sellable especially if this is not a centralised location.”

Two sites at Fernvale Road were recently sold for S$235 million and S$252 million, attracting about four bids per site. Analysts say the weighted average land price of about S$443 per square foot (psf) per plot ratio (ppr) for the two sites is about 17 per cent lower than that of nearby Rivertrees Residences at S$533 psf ppr.

Some market watchers expect land cost to moderate, after it peaked in the middle of 2013.

“I think the land prices will continue to stay around 10 to 15 per cent below what has been achieved in recent years. This is partly due to the higher construction cost that the developers have to factor in, and also slower or lower demand for private residences,” said Ms Christine Li, Head of Research and Consultancy at OrangeTee

According to some analysts, construction costs have gone up to about S$350 psf, and this will probably limit the developers’ ability to cut home prices. Analysts expect developers to be more cautious with their land bids going forward, now that the Government has said that it will not be easing the cooling measures just yet. However, well-located sites should still attract interest from developers.

Mr Donald Han, Managing Director of Chestertons, said: “Moving forward, in line with the current market with the introduction of TDSR (Total Debt Servicing Ratio) – fewer than five bids is going to be quite the norm. If you look at the size of the sale of sites, how big it is, anything which is about half a billion and beyond, would typically attract less than three bids, and if you are looking at sales of sites circa S$200 to S$300 million, you might be able to get up to five bids.”

For the second half of 2014, sites on the confirmed list under the Government Land Sales programme can yield about 3,900 private residential units, including 1,500 ECs. The Confirmed List comprises six private residential sites, including three EC sites, two commercial and residential sites and one commercial site. 

H2 GLS to speed up development in Holland V and Paya Lebar among others.

In today Business Times (11 June), it was reported that even as the government adopted a cautious approach to private housing in the latest land sales programme for H2 2014 to account for the twin factors of oversupply and weaker demand, the new sites rolled out yesterday stirred excitement in the market,

The new sites were rolled out under both confirmed and reserve lists in the residential and commercial property sectors.

In particular, the strategy to accelerate the development of various growth areas as identified in the latest land-use master plan is made clear in the latest slate. For instance, the Urban Redevelopment Authority (URA) will launch the tender for a much-awaited commercial and residential development site in Holland Village in December. “The sale of the site will further enhance the existing urban village character of the area,” said the Ministry of National Development (MND). The 2.31-hectare site is estimated to yield about 580 private residences in addition to 13,500 sq m GFA of commercial space. It is being placed on the H2 confirmed list as part of the Holland Village Extension plan unveiled in Master Plan 2014. It will provide new housing options within a mixed-use development that is well connected via pedestrian linkages to surrounding transport nodes and public spaces. An existing car park that will be part of the sale site will be shut by the first half of next year to facilitate development of the sale site. Future development on the site will provide parking lots to meet the demand in the area. In the meantime, an interim car park will be built to replace the public parking lots affected.

In addition, URA has enlarged a commercial site next to Paya Lebar MRT Station and moved it up from the reserve list to the confirmed list, reflecting its commitment to drive the growth of Paya Lebar as a regional commercial hub. Elaborating on the enlarged 3.98-hectare commercial site in Paya Lebar, MND said yesterday that the site comprises a plot that was on the H1 reserve list and another plot immediately south of Paya Lebar East-West Line MRT Station.

The two plots of land will be connected via a subterranean space under Sims Avenue. The sale of the larger land parcel provides greater flexibility for building design, layout and placement of uses. It will also facilitate the development of Paya Lebar Central into a commercial node, which is in line with the government’s objective of decentralising employment centres and bringing jobs closer to homes.

The earlier plot has a drain running diagonally across it, severely constraining any potential design scheme. While the additional plot to its north also has a drain running through it, the drain divides the plot into two more regular-shaped rectangular plots, which would allow a developer to put a tower on each half. Market watchers reckon that besides a minimum office component, the enlarged sale site is likely to have retail and residential elements, and possibly hotel uses too. The enlarged Paya Lebar site can generate about 167,160 square metres (nearly 1.8 million sq ft) gross floor area (GFA), compared with 86,940 sq m for the old plot. This will limit participation at its tender to big players, say market watchers.

With the focus on decentralisation, two sites for office developments in the city – a commercial site on Beach Road and a “white” site in Marina View – will take a “back seat on the reserve list. The 2.14-ha Beach Road plot, a new site that includes the former Central Police Station grounds, can generate 89,880 sq m GFA of commercial space. Meanwihile the Marina View plot, which can produce about 101,400 sq m GFA, has been on the reserve list for more than two years, though MND yesterday announced a new sale condition: banning strata subdivision of office space for the future project on the site. This is in line with the vision for quality office developments within Marina Bay, Singapore’s key financial and business district.

See: http://www.businesstimes.com.sg/premium/top-stories/push-speed-development-new-sites-released-20140611