2H2012 GLS: No let-up in sites for new homes...

The Singapore government will continue to inject new supply of land for residential development in the second half of the year to meet strong demand for private homes.

In a joint statement, the National Development Ministry and the Urban Redevelopment Authority said the new sites can yield some 14,200 private homes, including 3,100 executive condominium (EC) units.

The Government Land Sales Programme for the second half of the year will comprise 15 Confirmed List sites and 24 Reserve List sites.

Under the Reserve List system, a site will only be put up for tender if the developer's minimum bid price is acceptable to the government.

The two agencies said that 13 of the sites on the Confirmed List are for residential development and can potentially yield 7,100 units, comparable to the supply made available in the first half of the year.

This, to ensure there is adequate supply to meet private housing demand.

Majority of the private residential sites are located in the suburban areas or at the city fringe.

As of first quarter this year, 38,000 units of private homes, including 1,800 EC units are still unsold, according to the statement.

Source: Channel News Asia

With the deluge of new sites that will be offered and backlog of unsold private homes that are already in the pipeline, it be interesting to see how long prices will hold, especially if the EU economies continue to falter...

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$243 million top bid for Hillview Avenue site

The tender for a residential site at Hillview Avenue closed Tuesday with a top bid of $243.2 million, said the Urban Redevelopment Authority (URA).

Of the seven bidders, Kingsford Development handed in the highest bid for the 99-year lease site, which was launched for tender on January 19.

The second highest bid of $205.1 million came from Flamegold (a unit of UOL Group), followed by MCL Land which made a bid of $190.5 million.

The lowest bid was $147.98 million by Capital Development.

The site at Hillview Avenue measures 12,648.5sqm with maximum permissible gross floor area of 35,416sqm.

URA said it will evaluate the bids and the tender award will be announced at a later date.

Nicholas Mak, executive director, Research & Consultancy Department at SLP International Property Consultants said the site received "bullish" bids with the top bid 18.6% higher than the second highest bid.

"This is the highest difference between the top and second highest bid since February 2011, when the GLS tender for the condominium site at Bishan Street 14 concluded," he added.

Mr Mak also noted that the 99-year development - The Hillier - an uncompleted project launched in January 2012 achieved an average price of $1,296psf to date.

"The top bid for this Hillview site could result in a breakeven price of $1,010 to $1,060psf. To yield a decent profit, the developer would have to sell the units in the development at prices above $1,200 psf," he said.

Li Hiaw Ho, executive director, CBRE Research noted that URA reported that the soho-styled apartments at The Hillier sold about 450 units to date. "The success of The Hiller could be the reason for the optimistic top bid for the site," he added.

Source: Channel News Asia

The Hilier II, perhaps...?
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2H11 GLS: The "High" and the "Low"

The final tender for the Government Land Sales (GLS) programme for second half of 2011 closed yesterday, with the last site at Bedok South Avenue 3 drawing a total of 7 bids.

The latest issue of "The Real Deals" by Kim Eng Research revisits the 2H11 GLS programme and features the two sites with the highest and lowest price.

Click on the link below to read the Kim Eng report:
http://www.scribd.com/fullscreen/81142515?access_key=key-1f24swc3c58seawbyp2w

And to owners of Bedok Court: Hang on to your apartments!

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GLS tender result: Jevois Road plot drew 17 bids!

A plum 99-year leasehold private condo plot at Jervois Road drew a whopping 17 bids yesterday, attesting to the site's choice location and relatively affordable investment size for the site's development.

The top bid for the District 10 plot that could now be set for about 130 homes was $118.9 million or $880.74psf ppr from Singapore Land unit SL Development. This was 8.1% higher than the next highest offer of $814.81psf from Chng Ghim Huat Group.

There had been a wide variation of forecasts on the top bid for the District 10 site from property consultants - ranging from $630 - $950psf ppr - when the site was launched on Dec 22, two weeks after the government rolled out the additional buyer's stamp duty (ABSD).

Many analysts used as their reference point the $754psf ppr top bid by City Developments in December for a plot at Alexandra Road (next to Ascentia Sky condo project, near Redhill MRT Station and about 550 metres from the Jervois Road plot).

One school of thought places the Jervois plot as superior as it is a prime district 10 plot, next to a GCB Area and near the Malaysian High Commission. However, others reason that the Alexandra site, though in district 3, may have an advantage as it is closer to an MRT station and amenities.

Donald Han, special advisor at HSR Property Group, said: "Despite 17 bids, the top price was below my expectation of $950psf ppr. Developers are factoring in teh risks created by the five-year limit to develop and sell all units in the project if they don't want to pay the 10% ABSD. As well, interest has thinned from foreign buyers, who have to pay 10% ABSD," he added.

Michael Ng, group general manager of Singapore Land and its parent UIC, said yesterday: "Our breakeven cost would be about $1,300psf and we would aim to sell at around $1,500 - $1,600psf on average. This would be fairly reasonable for a condo in the Jervois/Bishopsgate locale near embassies.

"This site is next to a cul de sac and is set amidst lush greenery and mature trees." The project may be launched by year end.

He added that SingLand has been on the lookout for choice residential sites but such plots in prime districts are hard to come by at reasonable prices. "Most of them are collective sale sites which would generally be priced at $1,500psf ppr and upwards."

SingLand's proposed scheme on teh Jervois plot is a five-storey project of about 130 - 140 units - comprising mostly one and two-bedroom apartments along with some three bedders. "We'll also include about seven to eight strata terrace houses - probably three storeys high with a basement. We can build these landed units on the triangular end of this site, which will leave a more regular-shaped plot for the apartments," said Mr Ng.

Commenting on the strong turnout of 17 bidders at yesterday's tender, Credo Real Estate executive director Ong Teck Hui said: "The prime residential market may be struggling but there's obvious no shortage of interest when an attractive prime district site is put on the market. Enthusiasm in this tender rivals that for the Bishan Street 14 site which attracted 10 bidders and a top bid of $869psf ppr a year ago."

Adding to the site's appeal is its manageable size, as reflected in the $118.9 million top bid, making it a relatively less risky project than the typical large Government Land Sales sites, he added.

CBRE executive director Li Hiaw Ho noted that based on URA sales data for October - December 2011, a small-format unit in Nathan Residences (under construction) was sold at $1,655psf while units in One Jervois and Sheares Ville (completed in 2003) were sold between $1,450psf and $1,560psf. "These three projects have a freehold tenure. We expect that units on the new 99-year leasehold site should be able to command a premium because of their rarity, and therefore, may be able to fetch $1,600psf to $1,800psf when launched."

Source: The Business Times

The Jervois site certainly looked like a steal compared to what CapitaLand paid for its Bishan site, despite the former plot being "low-density" and all. However, the wife and I do question the merits of living too close to an "embassy area" - we will probably have to give up hosting our regular late-night mahjong sessions with our friends.

On a separate note, the latest GLS sale may probably benefit our dear friends (you know who you are) that are living at Clydesview, a freehold condo located directly across from the SingLand's site. Although Clydesview is district 3 (actually it is just off-district 10 as it is on the "wrong" side of Jervois Lane. And some agents are still listing Clydesview as district 10, deliberately or otherwise...), we have seen how the CapitaLand site in Bishan has already caused a spike in prices at nearby projects such as Bishan Loft and Clover By The Park. So S&F...HUAT ah!
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$408 million top bid for Clementi GLS plot

A 99-year leasehold condominium site along Jalan Lempeng has attracted a top bid of $408 million in an eight-cornered bidding session among developers.

IOI's property unit, Multi Wealth (Singapore) Pte Ltd, was the top bidder for the residential land parcel, offering $554.41psf ppr, 13% higher than the next highest bid of $490.50 psf ppr by joint bidders UOL Venture Investments Pte Ltd, Singapore Land's SL Development Pte Ltd, and Kheng Leong unit Russville Pte Ltd.

The lowest bid of $260.1 million was put in by Soilbuild Group Holdings Ltd, translating to $353.44psf ppr.

Highlighting that the number of bids was within expectations, Lee Sze Teck, senior manager of research and consultancy at DWG, said: "The level of interest and price level indicate that developers think that demand in the mass market segment is still robust."

Mr Lee said the Clementi estate has not had a condominium project launch for many years and the site is likely to benefit from pent-up demand from residents residing in Clementi. He cited the recent DBSS project, Trivelis, as a "good example".

Credo Real Estate executive director Ong Teck Hui agreed, saying: "As expected, the more attractive GLS (government land sales) residential sites will draw more bidders with some being prepared to bid more optimistically than others.

"The subject site is a reasonable distance from Clementi MRT station, the bus interchange, and the amenities in Clementi Town Centre."

He added that there are relatively fewer GLS residential sites available in the west compared to other locations, especially the north-east and east where most of the tendered sites were located.

Consultants estimate the break-even point for the future development to be between $950 and $1,000psf and the selling price would likely be around $1,200 to $1,300psf.

With a total site area of 262,828.6sqft, the plot with a maximum plot ratio of 2.8 times can be built up to 735,920.1sqft and yield about 685 apartment units.

Source: The Business Times

Click on link below to read our previous post on this GLS tender.
http://www.sgproptalk.blogspot.com/2011/11/three-more-gls-sites-out-for-sale.html

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Three more GLS sites released

The government has released three residential sites for sale on Thursday. These are at Bedok South Avenue 3, Jervois Road and Boon Lay Way.

The Urban Redevelopment Authority (URA) said they can yield about 1,325 housing units, adding to the 21,560 units launched for sale under the Government Land Sales (GLS) Programme this year.

The land parcels at Bedok South Avenue 3 and Jervois Road are launched for sale under the Confirmed List, while the site at Boon Lay Way is made available for application for sale under the Reserve List of the second half 2011 GLS Programme.

The land parcel at Boon Lay Way in Jurong Gateway, envisioned as Singapore's largest commercial hub outside the city centre, is expected to have a good mix of office, retail, hotel,entertainment, food & beverage (F&B) and other complementary uses. With a site area of about 1.1 hectares, it can potentially yield about 590 housing units.

The 2.8 hectare land parcel at Bedok South Avenue 3 is near Tanah Merah Interchange, while the Jervois Road land parcel, with a site area of about 0.8 hectares, is at the fringe of the city centre near Redhill MRT Station.

Source: Channel News Asia

The wife and I understand that tender for the residential site at Jervois Road will close on February 2, 2012, while the one for Bedok South Avenue 3 will close on February 9, 2012.

And under the Government's Reserve List system, the land parcel at Boon Lay Way will be released for sale if the criteria for the triggering of the site are met. When the site is put up for tender, a tender period of about four weeks will be allowed before the tender closes.

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Tender for GLS site at Alexandra Road closed with 7 bids

The tender for the development of a residential site at Alexandra Road closed on Tuesday with seven bids, the Urban Redevelopment Authority (URA) said.

The top bid of $396 million was jointly submitted by Sunmaster Holdings, Intrepid Investments and Garden Estates Limited. These are units of City Developments, Hong Leong Group and Hong Realty respectively.

The bid translates to $8,120.08 per sq m.

Tanglin Land submitted the second highest bid of $363 million, while Sherwood Development sent the third highest bid of $339.5 million. The lowest bid of $318.3 million was handed in by Multi Wealth (Singapore).

While the number of bids was fewer than analysts had expected, the margins between the bid prices were slim. The top bid was only 9.1% and 16.6% higher than the second and third highest bids.

"The keen interest and bidding by the consortium is spurred by the rare availability of an attractive site situated in a convenient and established location at the city fringe area that is generally popular with homebuyers/investors," said Ms Chia Siew Chuin, Director of Research & Advisory at Colliers International.

Analysts estimate the breakeven price for the site is around $1,300 psf.

Mr Li Hiaw Ho, Executive Director at CBRE said developers can build a high-rise project of over 40 storeys of some 550 apartments at the 99-year lease site.

Launched on October 17, the property measures 9,952.6 sq m with a maximum permissible gross floor area (GFA) of 48,768 sq m. It is located near the Redhill MRT station.

URA said it will award the tender after evaluating the bids.

Source: Channel News Asia

According to previous reports, the said site has a plot ratio of 4.9 and a maximum GFA of 524,936 sq ft, yielding between 540 and 580 units in a development that can be built up to 45 storeys.

Units at the neighbouring condo project Ascentia Sky were reportedly transacted at an average price of $1,381psf in the last six months, while units at Metropolitan Condominium, 100m away, transacted at $1,313psf. 

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Three more GLS sites out for sale

Three residential sites with the capacity to yield 1,830 new homes have been put on the market. Located in the Bartley, Kovan and Clementi neighbourhoods, these 99-year leasehold sites are part of the confirmed list of sites under the second half of this year's Government Land Sales programme.

They will add to the potential 14,945 units able to be built on sites that have been released for sale so far this year.

All three sites are close to MRT station, an attribute analysts say could attract between five to eight bids per site.

The largest of the trio has been tipped by analysts to draw strong developer interest. Located in Jalan Lempeng, the choice site is close to a network of amenities such as the new Clementi transport hub, Clementi Mall and established schools.

"There is strong demand for mass market housing in Clementi district as there is a limited new supply of apartments," said Mr Eugene Lim, ERA Realty's key executive officer.

With a site area of 2.4ha, the plot can be built up to 735,929sqft and potentially yield about 685 apartments. Its top bid is expected to hover around $540psf ppr with new homes selling within a range of $1,150 to $1,170psf. The tender will close on Jan 12.

The other big site is in Mount Vernon Road, off Bartley Road, and could possibly generate about 785 new homes. The land parcel has a site area of 2.1ha and a maximum gross floor area of 784,032sqft.

Mr Png Poh Soon, head of research at Knight Frank, expects the top bid for this site to be in the range of $610 to $630psf ppr, with an average selling price of about $1,200psf. Tender for the plot ends on Jan 10.

The last and smallest site is a 1.7ha plot at the junction of Kovan Road and Simon Road. A new development on the site could contain about 360 units.

Experts are predicting a top bid of between $550 and $560psf ppr, with the eventual new development selling at an average price of about $1,100psf. The tender for this site closes on Jan 18.

Source: The Straits Times

So... another 1,800 (at least) new apartments coming our way!

And for those of you who are wondering: 1 hectare (ha) = 107,639.104sqft


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More Government land sites up for sale!

Three residential property sites in suburban areas have been put up for sale by the Government in a move that could yield well over 1,300 new homes.

This is among the largest number of potential new homes in a single release of residential sites so far this year.

The three 99-year leasehold sites are in Punggol, Upper Bukit Timah and Yishun.

The largest plot is at the junction of Punggol Central and Edgedale Plains. The 218,035sqft site has a plot ratio of 3.0 and can be built up to a maximum of 654,105sqft.

Located in the eastern part of Punggol Town, it could yield up to 610 homes. Experts say the site could fetch a top bid of up to $210 million or $320psf ppr. The tender closes on Nov 3.

Another site at Chestnut Avenue has been tipped by analysts to be a favourite among developers because of its location within the popular Upper Bukit Timah neighbourhood. The 201,285sqft plot of land can be built up to 422,710sqft, yielding about 380 homes.

Mr Nicholas Mak, executive director of research at SLP International, expects the site to attract several major developers, with a top bid of up to $195 million, or $460psf ppr. The tender for this site ends on Nov 24.

The third site is at Yishun Ave 1 and is 181,910sqft. With a maximum gross floor area of 382,011sqft, the plot could yield 355 units.

SLP’s Mr Mak said the site could fetch a winning bid of $130 million to $145 million, which translates to $340 to $380psf ppr. The tender ends on Nov 15.

Fears about an oversupply of homes hitting the market over the next few years appear to have injected at least some caution into the property industry.

But new home sales figures released yesterday indicate that buyers are still keen to buy, with 1,348 new homes sold last month.

Mr Ku Swee Yong, chief executive of International Property Adviser, said this is one of the reasons why he remains positive developers will still be interested in Government land sites.

Another site – at Bishan Street 14 – has been made available through the Reserve List. This means the land will come up for sale only when any interested developer commits to bidding for the site above or at a set minimum price.

The Bishan land parcel is next door to a site that was bought by CapitaLand earlier this year for a whopping $550 million or $869psf ppr, an amount that exceeded analysts' expectations.

While some analysts feel this plot will not be triggered for sale soon, others said it could catch the attention of developers looking to increase their land banks.

Source: The Straits Times

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