Simei site for condo-like HDB flats

MORE condo-style Housing Board flats will soon be offered to home buyers looking to live in Singapore’s east side.

The HDB yesterday released a plum 181,108 sq ft site in Simei Road for tender - the fifth under its Design, Build and Sell Scheme (DBSS), which is open to private developers.

The 99-year site has a gross floor area of about 380,327 sq ft - enough for 360 homes.

Market watchers said developers will be keen on the plot due to its attractive location in a mature, established HDB estate just 10 minutes’ walk from Simei MRT station.

Knight Frank director of research and consultancy Nicholas Mak said the site, which could have residential blocks going up to 15 storeys, was likely to attract bids from medium-size developers and construction companies. He projected offers ranging from $49 million to $76 million, or $130 to $200 per sq ft per plot ratio.

The new site tender comes after National Development Minister Mah Bow Tan said recently that HDB will cater to buyers with different aspirations by providing a range of housing options. But the minister also stressed that standard flats built by HDB will continue to be the main stock of new supply.

A further two DBSS sites - in Toa Payoh and Bedok - are expected to be released soon. These and the Simei site could mean up to 1,500 new public condo-like flats coming on to the market.

That figure is 4,000 if flats earmarked for the four sites already released - Tampines, Boon Keng, Ang Mo Kio and Bishan - are included.

Flats at City View @Boon Keng, comprising three- to five-room units, were offered at between $349,000 and $727,000 - about $520 psf. The Simei tender closes at noon on June 3.

Source : Straits Times - 8 Apr 2008

Property fever here starting to cool

More signs of Singapore’s property market slowing: Tenders for a plot of government development land have closed, attracting one of the lowest bids in recent years.

The residential site bordering Choa Chu Kang Road and Woodlands Road on offer attracted just two bids. The highest offer came from an arm of Peak Properties, which is controlled by the Wee family. It offered $61 million, which works out to just $162 per sq ft (psf) per plot ratio.

Knight Frank research head Nicholas Mak said: “The current bid is one of the lowest in recent years.”

The low point came last month when just $78 psf was offered for land in Westwood Avenue. This was rejected by the Urban Redevelopment Authority (URA).

The last time residential land bids fell below $200 psf was between 2000 and 2002, at the height of Singapore’s decade-long property slump. It is not yet known whether the URA will accept the Peal Properties’ offer.

The Choa Chu Kang Road site can be potentially used to develop up to 240 condominium units or serviced apartments.

This tender may serve as a good benchmark for another nearby site in Choa Chu Kang Drive. Bids for this site close in May. Prices of completed units in nearby Maysprings condominium recently transacted at an average price of $530 to $630 psf.

Source : Today - 4 Apr 2008

Just 2 bids for Ten Mile Junction site

Kheng Leong unit offers $162.40 psf ppr; Sim Lian Land, $121.60 psf ppr

THE public tender for an unusual development site at Choa Chu Kang Road and Woodlands Road has closed with just two bids received.

The site, on which the state-owned Ten Mile Junction currently sits, received a bid of $61 million or about $162.40 per square foot per plot ratio (psf ppr) from Peak Green Pte Ltd.

The company is understood to be linked to Kheng Leong, the privately owned property group controlled by the family of banker Wee Cho Yaw.

The second, lower bid of $45.68 million, or $121.60 psf ppr, was put in by Sim Lian Land.

Earlier estimates had put the value of the site at between $200 psf ppr and $250 psf ppr.

Savills Singapore director of marketing and business development Ku Swee Yong said that he was surprised by the lower-than-expected bid, but added that rising construction costs may have been a factor.

Recently, a development site at Jurong West was not awarded because the highest bid received was considered to be too low by the government.

But while Mr Ku did not know if the higher bid for the Ten Mile Junction site would top the reserve price for the site, he said: ‘I think the site should be awarded.’

‘This area is very local and I believe the household incomes are lower,’ he added.

Knight Frank director of research and consultancy Nicholas Mak noted that the current bid is one of the lowest in recent years.

‘The previous time when land tender bids of below $200 psf ppr were submitted was in the period from 2000 to 2002.

‘But during that period, the government did sell some of the sites at prices below $200 psf ppr.’

On whether the Ten Mile Junction site would be awarded, Mr Mak said that it depended on whether market conditions were the same as those during 2000-2002. ‘There is a 50/50 chance,’ he added.

The site, which has a residential potential gross floor area of 254,394 sq ft, could have between 200 and 240 apartments.

The existing commercial GFA is 121,191 sq ft.

CB Richard Ellis Research executive director Li Hiaw Ho said that if the site were awarded, the breakeven price for the newly developed residential project will be around $400 psf. This will translate to a possible selling price of about $500 psf.

Units in Yew Tee Residences, a new 99-year leasehold project and Maysprings, the development closest to the subject site, were transacted at $520-550 psf, he noted.

Source : Business Times - 4 Apr 2008

Ten Mile Junction: Tender for residential plot

Ten Mile Junction site draws top bid of $61m

THE top bid for a unique 99-year leasehold site in Choa Chu Kang has come in at $61 million, which experts say is within expectations.

The residential site at the junction of Choa Chu Kang Road and Woodlands Road attracted only two bids, with Peak Green, a unit of Peak Properties, which is controlled by the United Overseas Bank’s Wee family, leading the way.

Its bid of $61 million values the site at $162 per sq ft (psf) per gross floor area. Sim Lian Land’s offer was well back at $45.68 million.

The site has an existing three-storey commercial development - the Ten Mile Junction mall - and was the first residential site above a Light Rapid Transit station offered for sale by the Urban Redevelopment Authority (URA). It has a gross floor area of 254,394 sq ft for residential use, for either flats or service apartments. The mall has a fixed gross floor area of 121,191 sq ft.

The URA said the tender will be awarded once the bids are evaluated.

Knight Frank director of research and consultancy Nicholas Mak said the price was within expectations given the location and nearby amenities.

CBRE Research executive director Li Hiaw Ho said that if the site is awarded to Peak Green, the breakeven price will be around $400 psf. This will translate into a possible selling price of about $500 psf for apartments on the site.

Source : Straits Times - 4 Apr 2008

Leng Beng urges nimble feet in shifting landscape

CDL chief suggests review of land sales, rethink on deferred payment scheme

The uncertainty surrounding the local property market will last at least another six months and stakeholders must stay nimble to deal with the changing tides, says property tycoon Kwek Leng Beng.

Speaking to BT, he said that the standstill in the local property market would end only after the US sub- prime crisis clears. ‘I believe it will take another six months - if not more,’ the executive chairman of listed City Developments Ltd (CDL) added.

But any restoration of confidence in the property market will also hinge on stakeholders - in both the private and public sectors - remaining nimble and reviewing their strategies and policies to meet changing market conditions swiftly, Mr Kwek stressed in a recent interview with BT.

‘You have to cut your coat according to your cloth. As a developer, if I said last year that I was planning to launch five projects this year, but you know this year the market is quiet, it would be unwise for me to say ‘because I decided last year to launch five projects this year, I must still go ahead’.’

He urged the government to likewise review its current land sales programme. The programme was fixed last year, when the market was buoyant, compared to conditions today.

Mr Kwek says the government may have been too quick to scrap the deferred payment scheme last October. He suggests the authorities should reconsider the scheme.

The Government Land Sales Programme is announced every six months. The current H1 2008 slate of sites was announced early last December, which means that some of the decisions were probably made even earlier, property consultants say.

‘It’s been proven in the past that the Singapore property market is a very important pillar that is closely linked to other markets - for example, financial markets, and the construction sector - and is in part driven by sentiment. So it’s vital for stakeholders in the private and public sectors in the property industry to remain nimble. They can do this by reviewing and modifying their practices quickly to stay relevant. By doing this, we can minimise potential problems and address them ahead of time,’ argues Mr Kwek, 68, who has about four decades of experience in the property business.

He also advocates a free-market approach to policy at Singapore’s current stage of development. ‘As Singapore competes in the race among global cities, Singapore must not be perceived as a city that interferes unduly in market forces. We should instead allow market forces to prevail in the property market - unless the situation gets out of hand,’ Mr Kwek says.

‘A global city does not necessarily mean your office rentals have to be cheap. Tokyo, London, New York all have high rents but continue to attract businesses. What’s important is that you have to create an environment where businesses can make money.’

He also says that the government may have been too quick to scrap the deferred payment scheme last October. Mr Kwek suggests the authorities should reconsider the scheme, which was started around 2002 to help stabilise the weak property buying sentiment at the time.

Under the scheme, private property buyers could buy units in uncompleted developments with just a 10 or 20 per cent downpayment, with the payment for the rest of the purchase price in some cases postponed until the completion of the project. In contrast, under the normal progress payment scheme, buyers have to pay regular instalments to the developer, based on the stage of the project’s construction.

‘If I am a developer and I want to offer deferred payment schemes to my home buyers, perhaps the developers’ bankers may be in a better position to assess the viability of the scheme even whilst staying prudent. The assessment will take into account the project, as well as the developers behind the scheme,’ Mr Kwek argues.

Many analysts had blamed deferred payment for fuelling property speculation. Mr Kwek, while acknowledging this, argues that the scheme also served a useful function: it enabled buyers of new residential properties to dispose of their existing properties at a gradual pace, instead of being forced to sell them.

The deferred payment scheme could be revived again - but this time with a higher initial payment of 30 per cent instead of 20 per cent, suggests Mr Kwek, who is also chairman and managing director of listed Hong Leong Finance.

He praises the government’s handling of the office crunch. The Urban Redevelopment Authority’s introduction of transitional office sites - allowing temporary low-rise office blocks to be built quickly on 15-year leasehold sites - was a swift response to increase office supply for businesses that don’t need to be in a posh CBD office block.

‘But a global city does not necessarily mean your office rentals have to be cheap. Tokyo, London, New York all have high rents but continue to attract businesses. What’s just as important is that you have to create an environment where businesses can make money.
‘Don’t forget, there are many cities fighting for investments. They can all copy Singapore. It’s very easy to duplicate. So to get ahead of the pack, we have to think of something different - something that nobody has done. This boils down to being nimble,’ Mr Kwek suggests.

Source : Business Times - 3 Apr 2008

URA launches hotel site in Balestier Road

Analysts say the land could fetch $350-$470 psf per plot ratio

THE Urban Redevelopment Authority (URA) yesterday put a one-of-a-kind hotel site in Balestier Road on the market.

The 1.77-hectare plot, next to Sun Yat Sen Nanyang Memorial Hall, includes a 0.46-hectare park.

The park will be named Zhongshan Park and the successful developer will have to provide a public event space there.

The land’s proximity to the memorial hall allows a unique hotel project that draws inspiration from Chinese culture and architecture, URA said.

The memorial hall gets about 50,000 visitors a year now, but URA believes the hotel will boost numbers.

The site is the first released by the government where a developer will have to integrate a park.

The site will go to the highest tenderer, but the development proposal will be reviewed by an advisory panel to ‘ensure a well designed development of appropriate quality and standard’, URA said.

The site has a maximum permissible gross floor area (GFA) of 430,556 sq ft.

At least 60 per cent of this must be set aside for hotel and hotel-related use. The rest can be used for commercial and residential purposes.

URA reckons about 650 hotel rooms can be built on the site.

Analysts say the land could fetch $350-$470 per square foot per plot ratio (psf ppr) - which works out to $150.7-$202.4 million.

But the tender could draw fewer than five bids because of the challenges a developer will face, said Nicholas Mak, director of research and consultancy at Knight Frank.

The developer will need a strong concept to maximise the historical theme of the memorial hall, as well as a plan to promote and increase the usage of the park, which is intended to be a selling point for the hotel, Mr Mak said.

The site is not close to an MRT station, he pointed out. And there is an element of uncertainty because the developer’s plans will be reviewed by an independent panel.

The government identified Balestier as a Singapore ‘identity node’ in 2002 because of its heritage value and old world charm.

Balestier Road right now has a mix of conserved shophouses that were built in the 1840s and modern commercial and residential buildings.

The tender for the site closes at noon on July 16.

Source : Business Times - 1 Apr 2008

Sprawling hotel site in Balestier put up for sale

Among the restrictions: Developer must build a park in the middle of the 1.77ha plot

IT IS hardly one of Singapore’s must-see tourist destinations, but Balestier Road is getting the sort of boost that might make it more visitor-friendly.

The Government yesterday released a sprawling hotel site for sale between Balestier Road and Ah Hood Road, in front of the Sun Yat Sen Nanyang Memorial Hall.

And there is an unprecedented twist: The developer must build and manage a park that takes up a quarter of the land right in the middle of the site.

It has even been named - Zhongshan Park - and its use has also been decided, with the Urban Redevelopment Authority (URA) stating that it wants it to, among other things, ‘enhance the experience for…visitors to the memorial hall’, which draws about 50,000 tourists a year.

Other restrictions, such as a required public event space and outdoor food and beverage or retail outlets in the park, also apply.

The URA said yesterday that the land release provides a ‘great opportunity to develop a unique hotel development’ in an area rich with heritage.

While Balestier is better known for famous eateries and lighting shops, it is also lined with shophouses, many of which have been earmarked for conservation and are a niche tourist attraction.

But the site’s large size and many restrictions mean that there are likely to be few bidders in the public tender, said property experts.

Mr Nicholas Mak, the director of research and consultancy at Knight Frank, expects fewer than five offers, with bids coming in at $150 million to $200 million, pricing it at $350 per sq ft (psf) to $470 psf per plot ratio.

The 1.77ha plot is the biggest hotel site released by the URA since 2001 and is a tad smaller than the Orchard Turn parcel, where the Ion Orchard mall and The Orchard Residences condominium are being built.

Sixty per cent of the site’s total gross floor area of 430,556 sq ft must be used for a hotel, which would yield about 675 rooms - slightly more than the 663 rooms at the Grand Hyatt Singapore in Scotts Road.

The rest of the land can be used for homes, shops, offices or more hotel rooms.

Even the hotel’s design, envisioned as contemporary Chinese, must be approved by a URA advisory panel.

The agency had previously offered a smaller version of the site for sale, without the park. But that plot - half the size of the present one - lingered on the market for a year without any takers before the URA took it off in October last year to combine it with other vacant land nearby.

It is now on the URA’s confirmed list, so it is up for sale regardless of demand.

Consultants noted the challenges inherent in the site.

Bidders will need a strong design concept and a strategy to make the park generate income, said Mr Mak.

He added that the site is not near an MRT station and is in fact ‘on the outskirts of everything’.

But some developers may still be attracted ‘because the challenges may reduce the number of competitors’, Mr Mak said.

‘This site could attract niche developers who are experienced in developing hotels with strong themes.’

Another bright spot is the strong sentiment in the hotel sector, especially for the mid-tier segment, said Ms Tay Huey Ying, director of research and consultancy at Colliers International.

‘The market is quite short of mid-tier hotels, so the prospect is good,’ she said.

The hotels dotting Balestier Road are mainly budget stays, including multiple outlets of Fragrance Hotel and Hotel 81.

Source : Straits Times - 1 Apr 2008

A revolutionary idea - a hotel in a park

Balestier Road site will face Sun Yat Sen Memorial Hall

IMAGINE a hotel development in the midst of a public park. Better still, one that blends in with the area’s heritage.

That could soon be a reality following the Urban Redevelopment Authority’s (URA) launch of a land parcel for sale by tender off Balestier Road.

The site, located across the Sun Yat Sen Nanyang Memorial Hall, will be nestled in the 0.46-hectare Zhongshan Park. This means the developer will be able to create a unique garden setting for the hotel, and enhance the experience for hotel guests and visitors to the memorial hall - a national monument in tribute to Dr Sun Yat Sen who led the 1911 Chinese Revolution.

Some 50,000 people visit the memorial hall annually.

The developer is also required to provide space for public events within the park. This, together with outdoor refreshment areas as well as tea pavilions, will help to inject greater vibrancy into the park and the surrounding area.

With excellent frontage along Balestier Road, the plot has a maximum permissible gross floor area of about 40,000sq m, at least 60 per cent of which is meant for a 650-room hotel and hotel-related uses, while the rest is for commercial and residential use.

The tender is an improved version of the previous one that was released in October 2006, but withdrawn a year later. According to a URA spokesman, it was withdrawn to review the land use of the site together with other vacant land in the vicinity.

Mr Nicholas Mak, director of consultancy and research at Knight Frank, said that while it would be unique to tie in the hotel with the area’s heritage, it poses several challenges for the developer and may draw less than five bids.

The future developer will need a strong concept to maximise the historical theme of the memorial hall, he said. The developer will also need a strategy to promote and increase the usage of the park, which is intended to be the selling point for the proposed hotel, or it may be overshadowed by the nearby Toa Payoh Town Park.

However, Mr Mak added that the unique requirements would attract niche developers who are experienced in developing hotels with strong themes.

“As most of the nearby hotels in the area are small, the proposed hotel, if it is targeted at a different market segment, would not face stiff competition when completed,” he said.

In light of the temporary hotel room crunch facing Singapore, property analysts Today spoke to say that while the area’s heritage would be an added bonus, what is really driving the market is the increase in visitors to the island.

“To really make a difference, it would be necessary to preserve the whole Balestier area, and not just selected parts such as the Sun Yat Sen memorial hall,” said at Chesterton International head of research Colin Tan.

Balestier Road has an interesting mix of conservation shophouses built in the 1840s, and modern commercial and residential buildings. The area was selected as one of Singapore’s Identity Nodes in the URA’s Identity Plan in 2002. Since then, about 150 shophouses have been gazetted for conservation.

The area is also known for its local delicacies, such as bak kut teh, sold in shophouses lining the main road.

To enable visitors to enjoy the area better and enhance their walking experience, the URA spokesman said plans are in place to improve the walkways and landscaping along the road.

“From time to time, the Government will, after studying the uniqueness of each area as well as opportunity for developments, consider suitable proposals for distinctive development concepts and these could include preserving the heritage around us,” said the URA spokesman.

The tender will close at 12pm on July 16.

Source : Today - 1 Apr 2008

Hotel site amidst garden setting in Balestier Road up for tender

THE Urban Redevelopment Authority (URA) on Monday launched a hotel site at Balestier Road for sale by public tender.

The 1.77 ha land parcel is one of two hotel sites to be launched for sale in the Government Land Sales Programme for the first half of this year.

The hotel sitie, located across from the Sun Yat Sen Nanyang Memorial Hall, a national monument and heritage centre that pays tribute to Dr Sun Yat Sen who led the Chinese Revolution in 1911, will nestled in a 0.46 ha park, named 'Zhongshan Park'.

This means the developer will be able to capitalise on the park to create a unique garden setting for the hotel and enhance the experience for hotel guests and visitors to the Memorial Hall.


The developer is also required to provide a public event space within the park to serve as a venue for the staging of events and activities.

This public event space, together with outdoor refreshment areas and tea pavilions which are allowed in the park, will help to activate and inject greater vibrancy into the park and the surrounding area.

With excellent frontage along Balestier Road, the plot has a maximum permissible gross floor area (GFA) of about 40,000 sqm, 60 per cent of which can be used for hotel and hotel-related uses. The remaining GFA can be for complementary commercial and residential uses.

'The land parcel's proximity to the Memorial Hall provides a great opportunity to develop a unique hotel development,' said the URA on Monday.

'This hotel development is envisaged to be a distinctive contemporary hotel that draws inspiration from the Chinese culture and architecture of symmetry and geometric forms interspersed with attractive landscaped garden and courtyards.'

Balestier Road has an interesting mix of conserved shophouses that were built in the 1840s and modern commercial and residential buildings.

The juxtaposition of these heritage shophouses and new buildings creates an interesting streetscape along Balestier Road, displaying its significant past and vibrant present.

In recognition of its strong heritage value and distinctive old world charm, Balestier was designated as one of Singapore's Identity Nodes in URA's Identity Plan in 2002.

Balestier Road is also known for its delicious local fares, such as Tau Sar Pia and Bak Kut Teh, that are tucked away in shophouses that line the road. Today, many locals and tourists explore Balestier Road to immerse in its historical charms and dine at many of the interesting eating outlets.

To enable visitors to enjoy the area better and enhance their walking experience, there are plans by URA to improve the walkways and landscaping along Balestier Road, said the URA.

Given that the site will be a key development along Balestier Road, the development proposal for the site will be subject to review by a Design Advisory Panel to ensure a well designed development of appropriate quality and standard.

Source : Straits Times - 1 Apr 2008

Balestier Road land parcel launched for sale

A hotel site at Balestier Road has been launched for sale.

The 1.77-hectare plot is one of two hotel sites on the Confirmed List of the Government Land Sales Programme for the first half of this year.

But for the first time, the government has made developing a park a requirement as part of the tender.

Balestier Road is buzzing with activity.

And adding to it will be a new contemporary hotel which draws inspiration from Chinese culture.

The site, released for sale by the Urban Redevelopment Authority (URA), will have a maximum permissible gross floor area (GFA) of 39,000 square metres.

60 percent of the area will be for hotel-related uses, with the remaining GFA going toward complementary commercial and residential uses.

Some 0.46 hectares of the plot will also be dedicated to the development of a public park.

Named Zhongshan Park, it is envisioned to be the grand entrance of the hotel, leading to the heritage attraction, Sun Yat Sen Nanyang Memorial Hall.

Tan See Ni, Deputy Director, Development, Physical Planning Division, URA, said, "The public event space will be 1,000 square metres in area; it's actually to provide the space for the public, National Heritage Board, even the Sun Yat Sen Memorial Hall, to hold events in the park if they so desire.

"In addition, we also allow some F&B developments within the park, up to 450 square metres of built-up area, and this is to enable some activities to be generated within the park."

URA estimates that the site will yield between 500 and 600 hotel rooms.

Analysts said the project could draw less than five bids due to the unique condition attached to the project.

In addition, developers will also need a strong concept to the leverage on the historical value of the place and draw visitors to the park.

Nicholas Mak, Director, Knight Frank, said, "The development of this site will also have some challenges, such as the development will be separated by a park in between, and the developer is required to develop and maintain the park, so this may increase the development cost somewhat. The land price will be in the range of S$150 million to the low end of S$200 million."

The URA has met extensively with local and overseas developers to market the site.

It also took part in the Mipim real estate convention in Hong Kong last year to showcase the plans to investors from Hong Kong, China and Taiwan.

URA said this project has generated some foreign interest, but it was unable to disclose the names of the companies who came to assess the site.

Tender for the site will close at 12 noon on July 16.

The selection of successful bidders will be based on tendered land prices only.

As the project is a key development along Balestier Road, the development proposal for the site will be subject to review by a Design Advisory Panel to ensure it meets quality standards. - CNA/ms

Source : Channel NewsAsia - 31 Mar 2008

LTA awards site at Serangoon for transport hub development

SINGAPORE will have 10 integrated public transport hubs in about 10 years.

The Land Transport Authority (LTA) yesterday awarded a ‘white’ site at Serangoon Central for an integrated development to a unit of Pramerica RealEstate Investors (Asia) and reiterated that four more integrated public transport hubs will be built - at Marina South, Jurong, Joo Koon and Bedok - over the next 10 years.

Typically, these developments comprise air-conditioned bus interchanges, MRT stations and retail/other developments.

So far, three such hubs have been completed - at Ang Mo Kio, Toa Payoh and Sengkang. Another two are being built - at Boon Lay and Clementi - slated for completion by 2009 and 2011 respectively, LTA announced.

‘Integrated public transport hubs will enhance connectivity by making our bus interchanges and MRT stations more accessible,’ LTA chief executive Yam Ah Mee said in a statement yesterday.

‘Residents have told us they enjoy the comfort and convenience of our air-conditioned bus interchanges at Ang Mo Kio, Toa Payoh and Sengkang. Public transport ridership at these areas has gone up steadily.’

Pramerica Asia will develop a mall on the Serangoon Central site, which it clinched for $800.9 million or $850 psf per plot ratio.

LTA said in its statement: ‘Under this tender, the developer will design and construct a development with a bus interchange, to be integrated with the Serangoon North-East Line MRT Station and the Serangoon Circle Line MRT Station.’

In its release yesterday, LTA did not give the locations of the four new integrated public transport hubs.

But market watchers reckon the ones in Jurong and Bedok are likely to be around the existing Jurong East and Bedok MRT stations.

The Marina South hub could be in the vicinity of a new station planned to serve the new cruise terminal at Marina South as part of an extension to the current North-South Line, which now ends at Marina Bay Station.

Source : Business Times - 29 Mar 2008

Choa Chu Kang residential parcel up for sale

Analysts think the 99-year leasehold site may fetch $230-$270 psf ppr

THE Urban Redevelopment Authority yesterday launched a 1.9-hectare residential site in Choa Chu Kang Drive for sale by public tender.

Analysts reckon the 99-year leasehold site could fetch $230-$270 per square foot per plot ratio (psf ppr), or $131.7 million to $154.6 million in all.




















The site has a maximum gross floor area of 572,600 sq ft.

It is within walking distance of Choa Chu Kang MRT station and should prove attractive to developers, analysts say.

'Judging by the healthy response to recent government residential land sale tenders in West Coast Drive and Yishun, this site should attract a fair number of bidders - possibly two to three genuine bids and two to three other opportunistic bids,' said Tay Huey Ying, director of research and consultancy at Colliers International.

'Bidders may include Far East Organization, Allgreen and Centrepoint,' she said.

Going by the response to nearby Yew Tee Residences when it was launched last year, a project on the latest site should be popular with mass-market buyers, she feels.

Ku Swee Yong, director of marketing and business development at Savills Singapore, agrees that the project will be popular: 'Mass market private homes are still in good demand because of the strong HDB market, where many sellers are getting large amounts of cash-over-valuations (COVs) for their flats. There is also a ready pool of HDB upgraders in Choa Chu Kang.'

Colliers' Ms Tay says that at a bid price of $230-$250 psf ppr, the breakeven price will come to about $560 to $580 psf. According to her, 'Developers would be looking to sell the new units at prices ranging between $620 and $650 psf'.

Units in The Warren condominium have transacted at an average of $570 psf between July 2007 and now, while units in Yew Tee Residences are changing hands at an average of $535 psf, she said.

Mr Ku, on the other hand, believes units on the upcoming site could go for about $700 psf. Some 500-550 homes can be built on the land, he said.

The plot is one of four new residential sites to be launched for sale as confirmed sites under the government land sales programme for the first-half of 2008.

Source : Business Times - 28 Mar 2008

URA launches tender for residential site at Choa Chu Kang

A land parcel at Choa Chu Kang has been launched for sale by tender for residential development.

The Urban Redevelopment Authority (URA) said it is one of four new residential sites to be released as a confirmed site under the Government Land Sales Programme for the first half of 2008.

At 1.9 hectares, the plot will have a maximum permissible gross floor area of 53,200 square metres.

A condominium up to 36 storeys can be built on the 99-year leasehold site.

Located within a mature residential district, it is near the Choa Chu Kang MRT station.

The tender will close at noon on 26 May and URA said the selection of successful bidders will be based on price.

Source : Channel NewsAsia - 27 Mar 2008

Church puts up Telok Kurau site for tender sale

Marketing agent CBRE pegs guide price at $40m

THE Presbyterian Church in Singapore has put up for sale a large 9,445 square metre (101,662 square foot) site in the Telok Kurau area.

The church said in a statement yesterday that the sale by tender is part of its strategy to unlock the value of selected properties to support the financial needs of the church, as well as its missions and school ministries.

CB Richard Ellis has been appointed marketing agent for the site which is at 116 Lorong J, Telok Kurau and 119 Lorong K, Telok Kurau. The legal owner is the Trustees of the Presbyterian Church in Singapore Registered.

The Urban Redevelopment Authority has granted an Outline Permission for the construction of a five-storey condominium development with a plot ratio of 1.4.

The development site is located a short drive away from Parkway Parade, East Coast Park and education institutions such as Tao Nan School (Primary) and Victoria Junior College.

Developers have the option to purchase the site with a leasehold tenure of 105 years or 999 years commencing Jan 26, 1939.

CBRE pegged the guide price at $40 million or about $607 per square foot per plot ratio.

Development charge is estimated at $46.44 million for a condominium development.

Under the Master Plan 2003, the site is zoned civic and community institution. Other potential uses are strata landed housing development or civic, community and cultural development. These uses incur a lower development charge.

Potential uses will, however, be subject to evaluation by the competent authority.

But for a condominium development, the developer can build about 118 units assuming an average size of 1,200 square feet each. The tender exercise closes at 3 pm on April 30, 2008.

Source : Business Times - 27 Mar 2008

Fund tops Serangoon site tender with $801m bid

Located above MRT station, it will be used for a mall and new bus interchange.

THE sleepy Serangoon area received a huge vote of confidence yesterday when a fund bid a sky-high $800.9 million for a land site, which will be used for a mall and a new bus interchange.

Six hopefuls lined up for the 99-year leasehold plot above Serangoon MRT station with four bidding over $660 million - well above the figure some people in the property industry thought the plot would attract.

The $800.9 million bid came from Pramerica Real Estate Investors (Asia) but was submitted under the name Gold Ridge. It reflects a price of $850 per sq ft (psf) of gross floor area.

This was 10 per cent above the second bid of $727 million from Serangoon Community Developments. Another bid came in at $401 million and one was a distant $215 million.

The site - launched by the Land Transport Authority - is destined to be a hub with Serangoon MRT serving as a junction station for the new Circle Line. Any development must include a new bus interchange integrated with the enlarged North-East and Circle Line stations.

The strategic location also offers enormous retail opportunities, say property experts.

‘Serangoon Central is not a heavy residential area but there are no major malls within a 3km to 5km radius,’ said Mr Danny Yeo, Knight Frank’s deputy managing director.

‘A mall can be a regional centre. The only tricky situation is that there can only be slightly over 200 carpark lots.’

Pramerica intends to build a full retail centre. It manages the Asian Retail Mall Fund I and II, which own several malls here, including Liang Court in River Valley, White Sands in Pasir Ris and Century Square in Tampines.

The Serangoon mall could have a net lettable area of around 600,000 sq ft, said CBRE Research executive director Li Hiaw Ho.

That would make it of similar size to Parkway Parade in Marine Parade and IMM in Jurong.

The plot is designated a white site, meaning it can be used for different functions, such as residential or commercial, but a full retail mall would bring the highest profit margin, said Savills Residential director Ku Swee Yong - and the highest risk in terms of cash flow.

The site has a gross floor area of 87,527 sq m. Consultants said a mall could probably bring average gross rent of up to $14 psf.

Assuming rent of $12 psf to $13 psf, the developers could expect a net income yield of about 5.5 per cent on a stabilised basis, said Mr Li.

Those who placed the lower bids were probably looking at a residential component, which could eventually sell for $800 psf to $900 psf, consultants said.

While the residential space would help with cash flow, proceeds from apartment sales should not be used to fund the retail mall, said an industry expert.

This is to avoid paying heavy taxes when the developer eventually sells the mall.

Meanwhile, the Urban Redevelopment Authority made available two 99-year leasehold sites yesterday. Interested developers can apply to have these reserve list sites put up for tender.

One is a 0.55ha plot at the junction of Clemenceau Avenue and Havelock Road, which is designated for a hotel of up to six storeys.

Another is a 3.07ha residential plot in Upper Changi Road North.

Mr Nicholas Mak, Knight Frank’s director of research and consultancy, said the first site could accommodate a three- to four-star hotel with up to 270 rooms. If it is put up for tender, its land price is estimated to be $75 million to $81 million, or $600 psf to $650 psf of gross floor area.

The second site could have up to 400 condo units and fetch between $83 million and $111 million, with new units commanding $650 psf to $720 psf.

Source : Straits Times - 27 Mar 2008

Pramerica makes $800m top bid for Serangoon site

Breakeven cost for full retail development under $2,000 psf: CEO

Entities linked to fund manager Pramerica Real Estate Investors (Asia) placed the top bid of $800.9 million or $850 per square foot of potential gross floor area for a plum 'white' site above Serangoon MRT Station.























The plot is expected to be developed into a sizeable mall with a net lettable area of about 650,000 sq ft. This would be similar to Parkway Parade and IMM.

Pramerica Asia chief executive Victoria Sharpe told BT that the group is planning a full-retail development on the site, and that its breakeven cost would be 'slightly below $2,000 per square foot (psf)' of net lettable area.

Based on this estimate, analysts reckon that Pramerica Asia's total investment in the development would be around $1.3 billion.

The tender for the site at Serangoon Central, conducted by the Land Transport Authority, attracted six bids.

Pramerica Asia's bid was 10 per cent higher than the next highest offer of $727 million or $772 psf per plot ratio (ppr), by a unit of Australia's Lend Lease Group.

'We're an experienced retail player in Singapore and we're very pleased with the outcome today. This is a site in a premier location, integrated with the MRT stations,' Ms Sharpe said.

The 269,180 sq ft plot is above both the existing Serangoon North East Line station and the Serangoon Circle Line station which will open next year.

The plot is expected to be developed into a sizeable mall with a net lettable area of about 650,000 sq ft. This would be similar to Parkway Parade and IMM.

'The proposed mall's location at a strategic intersection of the present North East Line and the future Circle Line, as well as its size, will allow the centre to not only tap into the existing traffic from Serangoon, Ang Mo Kio, Hougang and Sengkang but will probably be a major magnet for shoppers living beyond these immediate housing estates,' CB Richard Ellis executive director Li Hiaw Ho said.

Suburban malls in Singapore are currently valued at about $1,800-2,000 psf.

'Assuming an average overall gross monthly retail rental of about $12-13 psf that is achievable for a retail centre in this location, the developers could look forward to a net income yield of about 5.5 per cent on a stabilised basis,' he added.

Ms Sharpe said that the asset is likely to be held by several funds managed by Pramerica Asia including its pan-Asian funds - like the Asia Property Investment Fund and possibly its Asian Retail Mall Fund (ARMF) series.

Gold Ridge Pte Ltd, the entity that Pramerica used to bid at yesterday's tender, is owned by ASPF II (Mauritius) Ltd and Yunnan Gold (Mauritius) Ltd.

ARMF I owns four malls in Singapore - Tiong Bahru Plaza, White Sands in Pasir Ris, Century Square in Tampines and Hougang Mall - while ARMF II owns Liang Court and is also developing the Tampines 1 mall.

The other parties which bid for the Serangoon Central site were a unit of Frasers Centrepoint, which bid about $750 psf ppr; a joint venture involving the trustee for CapitaMall Trust, NTUC Income Insurance Co-op and NTUC FairPrice Co-op ($702 psf ppr); a tie-up between City Developments, Hong Leong Holdings and TID ($426 psf ppr); and Peak Properties ($228 psf ppr).

The plot had been expected to draw top bids of about $600-700 psf ppr. The 'white' site can be developed into any combination of the following uses: commercial, hotel, residential, and sports and recreational. But the 'highest and best use' for the property is retail, property consultants say.

Separately, the Urban Redevelopment Authority yesterday made available for application two 99-year leasehold reserve list sites - a hotel plot at the corner of Clemenceau Avenue and Havelock Road, and a private condo site at Upper Changi Road North/Flora Drive, next to Edelweiss Park Condo.

Mr Li estimates that the hotel site could be worth around $700-750 psf ppr, based on the $805 psf ppr and $762 psf ppr prices that two 99-year hotel sites at Upper Pickering Street and New Market Street/Merchant Road respectively fetched last October. 'The hotel sector is bursting at the seams but it can be hard getting funding because of the credit squeeze,' he said. Knight Frank director Nicholas Mak's estimate of the site's value is slightly lower, at $600-650 psf ppr. The Upper Changi condo plot is expected to fetch about $180-250 psf ppr, property consultants said.

Source : Business Times - 27 Mar 2008

Gold Ridge puts in top bid of S$801m for Serangoon Central white site

Gold Ridge has put in the top bid of nearly S$801 million for a white site at Serangoon Central.

The price works out to S$850 per square foot per plot ratio for the 99-year leasehold site.

This is 10 percent more than the next highest bid of S$727 million from Serangoon Community Developments.

All in, the site attracted 6 bids, with the lowest by Peak Star at S$215 million.

Analysts expect a full retail centre to be built on the site.

Consultants CB Richard Ellis says the retail mall could be around the size of Parkway Parade, IMM Building or Jurong Point and yield a net lettable area of around 600,000 square feet.

Consultants Knight Frank says the proposed development has the potential to be a regional retail mall and draw shoppers from the housing estates along the Northeast Line and the future Circle Line.

Analysts believe the retail units can be leased out at between S$10 and S$14 per square foot.

Retail malls are expected to do well in the short and medium term.

Retail-property REITs may also be interested in buying such malls after they are developed.

The Land Transport Authority, which offered the site, will study the bids and announce the award of the tender later. - CNA/ch

Source : Channel NewsAsia - 26 Mar 2008

URA unveils sales conditions for two reserve list sites

The Urban Redevelopment Authority has released detailed sales conditions for two reserve list sites at Clemenceau Avenue/Havelock Road and Upper Changi Road North/Flora Drive.

The site at Clemenceau Avenue is slated for hotel development.

The parcel is close to the popular entertainment districts of Clarke Quay, Boat Quay and Robertson Walk.

It has an area of about 5,500 square metres and a permissible gross floor area of 11,555 square metres.

Consultant Knight Frank expects a three to four-star business hotel to be built with up to 270 rooms.

It is estimating the land price to be in the range of S$600 to S$650 per square foot per plot ratio, or up to S$81 million in total.

A second site released at Upper Changi Road North parcel can be used for residential development.

The site has an area of 30,682 square metres and a maximum permissible gross floor area of 42,956 square metres.

Knight Frank says the new development could yield up to 400 units, which could be sold at between S$650 and S$720 per square foot.

This will result in a land price of about S$83 million to $111 million, or up to S$240 per square foot per plot ratio. - CNA/ch

Source : Channel NewsAsia - 26 Mar 2008

Bt Panjang, Jurong West sites go on reserve list

HDB has released two land parcels under the government’s reserve list system - a condominium site at Bukit Panjang and an executive condominium (EC) parcel at Jurong West.

The 99-year leasehold Bukit Panjang site in Chestnut Avenue is thought to be the more attractive of the two.

The parcel is 244,300 sq ft and has a 2.1 plot ratio - yielding a maximum gross floor area of 513,100 sq ft.

Ku Swee Yong, director of marketing and business development at Savills Singapore, estimates the site can fetch $190-$200 per sq ft per plot ratio (psf ppr) - which works out to $97.5-$102.6 million in all.

But Nicholas Mak, director of research and consultancy at Knight Frank, is more bullish - he estimates that price should be in the region of $220 to $280 psf ppr.

This works out to $112.9-$143.7 million in all.

‘Units in the proposed development will enjoy views of Cheng Hua Garden and the Lower Peirce Reservoir,’ Mr Mak said.

Units can fetch average prices of $720-$750 psf, he said.

Both analysts said 400-450 units could come up on the site.

Elsewhere, the EC site in Jurong West Street 42 has an area of some 183,000 sq ft and a 3.0 plot ratio - giving it a maximum gross floor area of 549,000 sq ft.

For this site, Mr Ku expects $125-130 psf ppr.

Mr Mak, on the other hand, estimates the price will be in the region of $120 to $160 psf ppr.

He said the site is expected to attract fewer than five bids if put up for tender.

About 420-500 flats can be built on the site.

Both plots are offered through the reserve list system, under which a site is only offered for public tender if the government receives an application with a committed bid at a price deemed acceptable.

‘It is good that the two sites are being offered under the reserve list,’ Mr Ku said.

‘In today’s uncertain market, this lets developers who are looking to build up their landbanks trigger the sites, rather than selling at a time when the market response might be poor.’ he said.

Source : Business Times - 26 Mar 2007

MCL tops bids at $213.5m for Yishun 99-yr condo site

Offer of $350 psf per plot ratio is 68% above the next highest bid

MCL Land yesterday offered almost 70 per cent more than its closest rival in a state tender for a 99-year condominium site at Yishun fronting Lower Seletar Reservoir and close to Singapore Orchid Country Club/Golf Course.

The Hongkong Land subsidiary placed the highest of five bids the site drew. Its price of $213.5 million - or about $350 per sq ft of potential gross floor area - was 68 per cent higher than the next highest offer, of $127 million or $208 psf per plot ratio by Peak Properties unit Peak Green. Peak Properties is controlled by the Wee family.

The tender drew three other bids - from Frasers Centrepoint ($109.66 million or $180 psf ppr), Sim Lian Land ($92.6 million or $152 psf ppr), and Cheung Kong Holdings unit Billion Rise, which placed what some market watchers termed a cheeky bid of $57.74 million or just $95 psf ppr.

Asked how he felt about offering such a steep premium for the plot, MCL Land’s CEO Koh Teck Chuan said: ‘I bid at a price I’m comfortable with. I’m confident of making money on this project.’

The breakeven cost for a new condo development on the site will be about $680 psf, and MCL Land’s bid model assumed an average selling price of $750-800 psf, he added.

The group plans a 480-500 unit condo development 15-16 storeys high. ‘Because the site has a long frontage along the reservoir, we can design the project in such a way that almost every unit will face the reservoir,’ Mr Koh said.

‘We’ve studied the site. I climbed up the nearest HDB block and the view was breath-taking. I saw unobstructed views of the reservoir and greenery.

‘And the site is within walking distance of Khatib MRT Station. This is a nice suburban housing location.’

Mr Koh pointed out that developers have adopted divergent strategies at state tenders lately. ‘Some are using the current lull to fish for bargains, while those who need to replenish their landbanks tend to bid at closer to market prices,’ he said.

MCL currently does not have any 99-year leasehold residential sites in its landbank, although it has a string of freehold residential projects it hopes to launch this year or next year. These are in locations like Holland Hill (in a joint venture with Ho Bee), Balmeg Hill in the Pasir Panjang area, Upper Serangoon Road, Boon Teck Road in the Balestier vicinity, Ewe Boon Road, Sixth Avenue and Seletar Hills.

CB Richard Ellis executive director Li Hiaw Ho said the ‘fairly robust response’ of five bids at yesterday’s tender from major and mid-size developers signals ‘developers’ confidence in the suburban segment despite the current lukewarm response to new projects’.

Demand for the new condo on the plot at Yishun Avenue 1/2 is likely to come from HDB upgraders and those working in the northern part of Singapore, he added.

Source : Business Times - 26 Mar 2007