Hot property market to cool?
Analysts expect drop in transactions
05:55 AM Jun 10, 2010
by Wong Siew Ying
SINGAPORE - The local property market is in for a correction in the coming months, said industry players, citing tell-tale signs like a plateau in home prices and a drop in transaction volumes.
The Singapore Institute of Surveyors and Valuers (SISV) said there were only 899 caveats lodged for condominiums in the first three weeks of last month. There were 3,060 for the whole of April.
And although new condominium projects are still doing well, property agents said homes sales in the secondary or resale market have dropped by up to 20 per cent recently.
Dennis Wee Group said buyers are becoming more cautious going by last month's sales figures.
"Instead of seeing a 30 per cent increase in transactions as in the month before, I only saw a marginal 3.5 per cent increase," said Mr Chris Koh, director at Dennis Wee Properties.
"A lot of buyers are pulling their handbrakes. What they feel today is that the seller is asking for too high a price and 'if I am not in a hurry, why not sit and wait?'" he added.
Industry data from SISV showed sales falling across various districts as of the middle of last month.
The prime districts of 9, 10 and 11 recorded a 76 per cent drop, while the downtown city area saw the sharpest decline of 88 per cent.
Analysts also expect transaction volumes to fall by 5 to 10 per cent due to the World Cup which begins tomorrow.
Meanwhile, ECG Property said it now takes longer to close a transaction. It used to be about 45 days before, but is now up to 80 days.
Industry players expect the market correction to last between three and six months, and some said home prices could trend down by 3 to 5 per cent on average during this period.
"Some of these prices are over book-keeping value where some banks may not even match some of the asking prices today," said Mr Eric Cheng, chief executive officer of ECG Property.
"That also shows that these prices could be a speculation price instead of a true reflection price. I think the market is going through a slight correction," he said.
Analysts said prices may also be capped by more land supply due to be released by the Government. Other risk factors include volatile stock markets and the European debt crisis.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Thursday, June 10, 2010
BT : Mumbai plans world's tallest apartment block
Business Times - 10 Jun 2010
Mumbai plans world's tallest apartment block
Called World One, it will be 117 storeys high and is likely to be ready by 2014
(MUMBAI) An Indian property group on Tuesday unveiled plans to build the world's tallest purely residential tower in Mumbai, the country's booming financial capital.
Lodha Developers said the tower would be 117 storeys high and would be designed by New York-based Pei Cobb Freed and Partners, the architects of the Louvre Pyramid in Paris and the Bank of China building in Hong Kong.
'At 1,450 feet (442 metres), the tower will be the tallest of its kind,' Abhisheck Lodha, managing director of Lodha Developers, told reporters as he presented a scale model of the complex.
Called World One, it will be located in central Mumbai on the plot of a defunct textile mill and should be completed by 2014.
The development will contain more than 300 apartments and include large green spaces, cafes and an open-air observatory.
Mumbai's sky-high property prices continued to rise during the global economic downturn, even though the city is plagued by water shortages and poor infrastructure.
The city's central district was a textile mill hub until a few decades ago, but a large labour strike in the 1980s and the entry of new power loom complexes led to the demise of the old mills.
In their place have risen shopping malls, luxury apartments, hotels and high-tech corporate offices.
'This is to meet the aspirations of the global Indian and to establish a landmark for the city,' Mr Lodha said. 'We are trying to create the Rockefeller Centre-type experience.'
The developer expects the base price of an apartment to be upwards of 75 million rupees (S$2.25 million), while luxury multi-storey properties could cost up to US$10.5 million.
The tower will cost about US$440 million to build, the Lodha group said, and apartment sales will start this month.
At present, the world's tallest residential tower is the 323-metre Q1 on Australia's Gold Coast, while Mumbai's 60-storey Imperial twin towers are India's tallest, at 249 metres.
There are taller buildings around the world, including Dubai's Burj Khalifa at 828 metres and the Canton TV Tower in Guangzhou, China, at 610 metres, but these are not purely residential.
Residential rates in central Mumbai have risen about 30 per cent in the past six months, analysts say, due to higher input costs.
'The market for luxury homes in Mumbai is growing,' said Param Desai, a real estate analyst with Mumbai's Angel Broking.
'Liquidity is improving and salaries, disposable incomes are on the rise,' he added.
India's economy recorded 7.4 per cent growth for the year to March, official data released last month showed.
India's top property firm, DLF, has plans to launch Mumbai's largest luxury residential project a few blocks from the proposed World One tower.
This project would have 1,000 apartments in three buildings of 80-90 floors each, industry sources said\. \-- AFP
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Creating a landmark: An artist's impression of the building which will have more than 300 apartments and include cafes and an open-air observatory
Mumbai plans world's tallest apartment block
Called World One, it will be 117 storeys high and is likely to be ready by 2014
(MUMBAI) An Indian property group on Tuesday unveiled plans to build the world's tallest purely residential tower in Mumbai, the country's booming financial capital.
Lodha Developers said the tower would be 117 storeys high and would be designed by New York-based Pei Cobb Freed and Partners, the architects of the Louvre Pyramid in Paris and the Bank of China building in Hong Kong.
'At 1,450 feet (442 metres), the tower will be the tallest of its kind,' Abhisheck Lodha, managing director of Lodha Developers, told reporters as he presented a scale model of the complex.
Called World One, it will be located in central Mumbai on the plot of a defunct textile mill and should be completed by 2014.
The development will contain more than 300 apartments and include large green spaces, cafes and an open-air observatory.
Mumbai's sky-high property prices continued to rise during the global economic downturn, even though the city is plagued by water shortages and poor infrastructure.
The city's central district was a textile mill hub until a few decades ago, but a large labour strike in the 1980s and the entry of new power loom complexes led to the demise of the old mills.
In their place have risen shopping malls, luxury apartments, hotels and high-tech corporate offices.
'This is to meet the aspirations of the global Indian and to establish a landmark for the city,' Mr Lodha said. 'We are trying to create the Rockefeller Centre-type experience.'
The developer expects the base price of an apartment to be upwards of 75 million rupees (S$2.25 million), while luxury multi-storey properties could cost up to US$10.5 million.
The tower will cost about US$440 million to build, the Lodha group said, and apartment sales will start this month.
At present, the world's tallest residential tower is the 323-metre Q1 on Australia's Gold Coast, while Mumbai's 60-storey Imperial twin towers are India's tallest, at 249 metres.
There are taller buildings around the world, including Dubai's Burj Khalifa at 828 metres and the Canton TV Tower in Guangzhou, China, at 610 metres, but these are not purely residential.
Residential rates in central Mumbai have risen about 30 per cent in the past six months, analysts say, due to higher input costs.
'The market for luxury homes in Mumbai is growing,' said Param Desai, a real estate analyst with Mumbai's Angel Broking.
'Liquidity is improving and salaries, disposable incomes are on the rise,' he added.
India's economy recorded 7.4 per cent growth for the year to March, official data released last month showed.
India's top property firm, DLF, has plans to launch Mumbai's largest luxury residential project a few blocks from the proposed World One tower.
This project would have 1,000 apartments in three buildings of 80-90 floors each, industry sources said\. \-- AFP
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Creating a landmark: An artist's impression of the building which will have more than 300 apartments and include cafes and an open-air observatory
BT : Aussie home loan approvals down in April
Business Times - 10 Jun 2010
Aussie home loan approvals down in April
Interest rate increases cool demand from first-time buyers
(SYDNEY) Australian home loan approvals fell in April for a seventh straight month, adding to evidence that the Group of 20's most aggressive round of interest rate increases has cooled demand among first-time buyers.
The number of loans granted to build or buy houses and apartments slipped 1.8 per cent to 47,669 from March, when they declined a revised 2.9 per cent, the statistics bureau said in Sydney yesterday. The median estimate of 20 economists surveyed by Bloomberg News was for a 2 per cent drop.
Plunging housing finance approvals may cool the nation's property market, which surged 20 per cent in the 12 months through March 31.
Yesterday's report may also prompt central bank governor Glenn Stevens to keep the benchmark interest rate unchanged in July for a second month after boosting the rate six times between October and May. He described monetary policy last week as 'appropriate for the near term'.
'Housing finance demand has moderated considerably,' Bill Evans, chief economist at Westpac Banking Corp in Sydney, said ahead of yesterday's report. 'Finance to first home buyers has retreated sharply,' he added.
Borrowing has tumbled since the start of the fourth quarter after Prime Minister Kevin Rudd's government began reducing A$21,000 (S$24,425) grants to first-time buyers of newly built dwellings. Those grants were lowered in two steps to A$7,000 on Jan 1.
First-home buyers accounted for 16.3 per cent of dwellings that were financed in April, up from 15.9 per cent in March and compared to 28.1 per cent in April 2009, the statistics bureau said yesterday.
Mr Stevens and his board increased Australia's overnight cash rate target by 150 basis points between October and last month to 4.5 per cent.
The increases have led to signs of cooling Australia's economy, which skirted last year's global recession, stoked by government stimulus spending and a rebound in the property market. Gross domestic product growth slowed to 0.5 per cent in the first quarter from the previous three months, when it jumped 1.1 per cent, a report showed last week. A report published yesterday by Westpac Banking Corp showed consumer confidence fell in June for a third straight month.
The total value of home loans rose 0.8 per cent to A$21.7 billion in April, yesterday's report showed.
The value of lending to owner-occupiers advanced 0.6 per cent. The value of loans to investors gained 1.3 per cent\. \-- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Slowdown: Plunging housing finance approvals may cool the Australian property market, which surged 20 per cent in the 12 months through March31
Aussie home loan approvals down in April
Interest rate increases cool demand from first-time buyers
(SYDNEY) Australian home loan approvals fell in April for a seventh straight month, adding to evidence that the Group of 20's most aggressive round of interest rate increases has cooled demand among first-time buyers.
The number of loans granted to build or buy houses and apartments slipped 1.8 per cent to 47,669 from March, when they declined a revised 2.9 per cent, the statistics bureau said in Sydney yesterday. The median estimate of 20 economists surveyed by Bloomberg News was for a 2 per cent drop.
Plunging housing finance approvals may cool the nation's property market, which surged 20 per cent in the 12 months through March 31.
Yesterday's report may also prompt central bank governor Glenn Stevens to keep the benchmark interest rate unchanged in July for a second month after boosting the rate six times between October and May. He described monetary policy last week as 'appropriate for the near term'.
'Housing finance demand has moderated considerably,' Bill Evans, chief economist at Westpac Banking Corp in Sydney, said ahead of yesterday's report. 'Finance to first home buyers has retreated sharply,' he added.
Borrowing has tumbled since the start of the fourth quarter after Prime Minister Kevin Rudd's government began reducing A$21,000 (S$24,425) grants to first-time buyers of newly built dwellings. Those grants were lowered in two steps to A$7,000 on Jan 1.
First-home buyers accounted for 16.3 per cent of dwellings that were financed in April, up from 15.9 per cent in March and compared to 28.1 per cent in April 2009, the statistics bureau said yesterday.
Mr Stevens and his board increased Australia's overnight cash rate target by 150 basis points between October and last month to 4.5 per cent.
The increases have led to signs of cooling Australia's economy, which skirted last year's global recession, stoked by government stimulus spending and a rebound in the property market. Gross domestic product growth slowed to 0.5 per cent in the first quarter from the previous three months, when it jumped 1.1 per cent, a report showed last week. A report published yesterday by Westpac Banking Corp showed consumer confidence fell in June for a third straight month.
The total value of home loans rose 0.8 per cent to A$21.7 billion in April, yesterday's report showed.
The value of lending to owner-occupiers advanced 0.6 per cent. The value of loans to investors gained 1.3 per cent\. \-- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Slowdown: Plunging housing finance approvals may cool the Australian property market, which surged 20 per cent in the 12 months through March31
BT : Aussie office sector draws record foreign buyers
Business Times - 10 Jun 2010
Aussie office sector draws record foreign buyers
(SYDNEY) Foreign investment in Australia's office market climbed to a record high in the past 12 months as the economy's resilience continued to draw investors seeking growth, property firm CBRE said yesterday.
In the 12 months to June, major office sales totalled A$2.4 billion (S$2.8 billion) of which 70 per cent was spent by offshore investors, CBRE said.
'International investors are coming to Australia with firm mandates approved and the equity to spend. They are confident about our real estate and see exceptionally good growth prospects,' CBRE regional director Rob Sewell said in a statement. 'If the assets fit the brief, they come to the table and bid.'
Around 49 per cent of buyers were from Asia with South Korean investors accounting for 28 per cent, due in part to the South Korean National Pension Service's purchase of Sydney's Aurora Place for A$685 million, CBRE said.
German investors accounted for about 15 per cent of the buys and Swiss players represented 5 per cent.
Australia's economy remained resilient with its jobless rate at 5.4 per cent, compared with 9.7 per cent in the United States and around 10 per cent for Europe.
CBRE said yields on the office buildings purchased by offshore investors ranged from 7.5 per cent to 8 per cent, and they were likely to continue to dominate the market in the second half of the year\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Aussie office sector draws record foreign buyers
(SYDNEY) Foreign investment in Australia's office market climbed to a record high in the past 12 months as the economy's resilience continued to draw investors seeking growth, property firm CBRE said yesterday.
In the 12 months to June, major office sales totalled A$2.4 billion (S$2.8 billion) of which 70 per cent was spent by offshore investors, CBRE said.
'International investors are coming to Australia with firm mandates approved and the equity to spend. They are confident about our real estate and see exceptionally good growth prospects,' CBRE regional director Rob Sewell said in a statement. 'If the assets fit the brief, they come to the table and bid.'
Around 49 per cent of buyers were from Asia with South Korean investors accounting for 28 per cent, due in part to the South Korean National Pension Service's purchase of Sydney's Aurora Place for A$685 million, CBRE said.
German investors accounted for about 15 per cent of the buys and Swiss players represented 5 per cent.
Australia's economy remained resilient with its jobless rate at 5.4 per cent, compared with 9.7 per cent in the United States and around 10 per cent for Europe.
CBRE said yields on the office buildings purchased by offshore investors ranged from 7.5 per cent to 8 per cent, and they were likely to continue to dominate the market in the second half of the year\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Morgan Stanley to advise ING on property unit's sale
Business Times - 10 Jun 2010
Morgan Stanley to advise ING on property unit's sale
(LONDON) Dutch bank ING has appointed Morgan Stanley for a possible sale of its real estate management arm as the bank reinvents itself after a state bailout, sources familiar with the matter said.
The hiring of the US investment bank follows months of speculation on the future of the unit - which has US$92 billion in assets under management - while ING is making heavy cuts to its business at the behest of the European Union.
A spokesman for ING in Amsterdam declined to comment. Morgan Stanley also declined to comment.
The bank, which received 10 billion euros (S$16.9 billion) of state aid in 2008, said in February that it would keep Real Estate Investment Management (REIM) within the bank, scrapping an earlier planned transfer into ING Investment Management.
Property market sources suggest the appointment of banker William Connelly to the helm of REIM in March following the sudden retirement of George Jautze suggested a trade sale or break-up of the unit was a serious ambition\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Morgan Stanley to advise ING on property unit's sale
(LONDON) Dutch bank ING has appointed Morgan Stanley for a possible sale of its real estate management arm as the bank reinvents itself after a state bailout, sources familiar with the matter said.
The hiring of the US investment bank follows months of speculation on the future of the unit - which has US$92 billion in assets under management - while ING is making heavy cuts to its business at the behest of the European Union.
A spokesman for ING in Amsterdam declined to comment. Morgan Stanley also declined to comment.
The bank, which received 10 billion euros (S$16.9 billion) of state aid in 2008, said in February that it would keep Real Estate Investment Management (REIM) within the bank, scrapping an earlier planned transfer into ING Investment Management.
Property market sources suggest the appointment of banker William Connelly to the helm of REIM in March following the sudden retirement of George Jautze suggested a trade sale or break-up of the unit was a serious ambition\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Hyatt plans to develop more hotel properties
Business Times - 10 Jun 2010
Hyatt plans to develop more hotel properties
(LOS ANGELES) Hyatt Hotels Corp, the lodging chain controlled by the Pritzker family, plans to put more money into developing properties, president and chief executive officer Mark Hoplamazian said.
The Chicago-based company, which had 434 locations as of March 31, is buying and investing in joint ventures and debt financing to develop North American hotels. The strategy contrasts with rivals seeking to pare holdings.
'We are willing to invest our own money to see a developer put the shovel in the ground sooner than later,' Mr Hoplamazian said during an interview on Tuesday at the soon-to-open Andaz hotel on 41st Street and Fifth Avenue in Manhattan.
Marriott International, the largest US hotel chain, and Starwood Hotels & Resorts Worldwide, the third-biggest, have said they are selling stakes in properties to focus on the operation of their hotels.
Starwood sold two of its W Hotels in Manhattan to St Giles Hotels in April as part of the plan.
Hyatt also is looking to expand the Grand Hyatt and boutique Andaz brands through new development, recapitalising stalled projects or taking over other hotels, Mr Hoplamazian said.
The company in April won the management contract for the Aviara Resort in California, formerly a Four Seasons Hotels venue, and said it will rebrand the property as a Park Hyatt. It converted the Ivy Hotel in San Diego into an Andaz in February.
Hyatt, which raised US$1.09 billion in an initial public offering last year, opened an Andaz property on Wall Street in Manhattan this year. It expects to debut the 41st Street location next month.
Mr Hoplamazian compared the brand to Starwood's W chain. 'The customer base is large enough and they are robust spenders on travel. We think for sure that Andaz has every bit of the potential as the W Hotel chain.' - Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Hyatt plans to develop more hotel properties
(LOS ANGELES) Hyatt Hotels Corp, the lodging chain controlled by the Pritzker family, plans to put more money into developing properties, president and chief executive officer Mark Hoplamazian said.
The Chicago-based company, which had 434 locations as of March 31, is buying and investing in joint ventures and debt financing to develop North American hotels. The strategy contrasts with rivals seeking to pare holdings.
'We are willing to invest our own money to see a developer put the shovel in the ground sooner than later,' Mr Hoplamazian said during an interview on Tuesday at the soon-to-open Andaz hotel on 41st Street and Fifth Avenue in Manhattan.
Marriott International, the largest US hotel chain, and Starwood Hotels & Resorts Worldwide, the third-biggest, have said they are selling stakes in properties to focus on the operation of their hotels.
Starwood sold two of its W Hotels in Manhattan to St Giles Hotels in April as part of the plan.
Hyatt also is looking to expand the Grand Hyatt and boutique Andaz brands through new development, recapitalising stalled projects or taking over other hotels, Mr Hoplamazian said.
The company in April won the management contract for the Aviara Resort in California, formerly a Four Seasons Hotels venue, and said it will rebrand the property as a Park Hyatt. It converted the Ivy Hotel in San Diego into an Andaz in February.
Hyatt, which raised US$1.09 billion in an initial public offering last year, opened an Andaz property on Wall Street in Manhattan this year. It expects to debut the 41st Street location next month.
Mr Hoplamazian compared the brand to Starwood's W chain. 'The customer base is large enough and they are robust spenders on travel. We think for sure that Andaz has every bit of the potential as the W Hotel chain.' - Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Office prices set to rise over next 12 months: JLL
Business Times - 10 Jun 2010
Office prices set to rise over next 12 months: JLL
By KALPANA RASHIWALA
(SINGAPORE) The Republic's prime office capital values are poised to rise over the next 12 months in anticipation of rental increases. This is fuelling interest among overseas investors in the Singapore office market, says Jones Lang LaSalle.
'The number of investors coming to town and looking at offices has multiplied radically in the past three months. Most are looking to invest in a 12-18 month window rather than necessarily immediately,' says JLL's head of markets Chris Archibold.
These potential overseas investors are mostly European funds (primarily from Germany and the UK). Middle Eastern and US investors make up the other key groups of foreign investors keen on Singapore offices, he added.
JLL is forecasting that the average capital value for Prime Grade A (Raffles Place) office space will rise to $1,800 per square foot by the end of this year, up from the Q1 2010 figure of $1,700 psf. This is the level where capital values have stabilised since Q3 last year.
Office capital values are expected to appreciate further next year as the rental recovery gathers momentum amid strong economic fundamentals in Singapore and Asia, says JLL's MD for Singapore and South-east Asia Chris Fossick.
The picture for Singapore office rents has already started to brighten. Mr Archibold forecasts that for the whole of this year, the average monthly prime Grade A Raffles Place rental value could increase by about 5 per cent; growth will be limited by sentiment, given that the global economic situation is still pretty fragile.
'Notable leasing deals are expected to be completed over the next few months and this, combined with the trend of redeveloping CBD buildings into residential use, may see sufficient rebalancing of supply and demand for rents to stabilise over the next three to six months,' says Mr Archibold.
An estimated 1.3 million sq ft net lettable area of existing office space is expected to be taken out from the market assuming government approvals for redevelopment - mostly to residential use - are granted. The stock expected to be removed from the market includes Marina House, VTB Building, UIC Building and North Bridge Commercial Complex.
Leasing activity for new office projects began to pick up in Q3 last year. Mr Archibold says: 'We are aware of eight to 10 occupiers, studying potential leasing deals of about 100,000 sq ft each, that are now looking at their options.'
While such news may entice some investors to buy office space, not everyone who's sniffing out office deals these days is eyeing the leasing and rental recovery story.
CB Richard Ellis executive director (investment properties) Jeremy Lake highlights that two discernible profiles of investors have emerged in the Singapore office market over the past year.
'The first are those who intend to buy an office building and develop it into alternative use, mostly residential to cater to current strong demand for homes in the CBD. This group typically comprises residential developers that are targeting older Grade B office blocks, which are thus gaining a new lease of life from their latent value arising from residential development potential.
'The second group - which would include Singapore Reits and European and Asian property funds - are keen on high-quality office buildings for their rental income and capital appreciation potential given the office rental recovery underway.'
The second profile reflects the traditional reason for buying offices in Singapore.
More than $1 billion of Singapore office investment sales - cutting across both types of buyers - have been sealed since the beginning of last year. They include Parakou Building, Anson House, VTB Building, 1 Finlayson Green, Robinson Point and Marina House.
According to JLL, office investment volumes have picked up since the middle of last year across the Asia-Pacific, and capital values have bottomed in most markets. 'Foreign and domestic investors looking to buy based on rising rental income have a choice of markets to consider including Hong Kong, Singapore, Shanghai and Melbourne. Rents are likely to move upwards in these cities with capital values following in line over the next 12 months,' says Megan Walters, head of research for Asia Pacific Capital Markets at JLL.
JLL's Q1 Office Investor Rental Weather Map for Asia-Pacific shows that the sunniest point on the map is Hong Kong, where the pace of recovery in the Grade A office leasing market appears to be faster than expected. 'Demand has been driven by consolidation and from PRC companies looking to set up in Hong Kong,' Dr Walters said.
In Singapore, the average monthly prime Grade A Raffles Place rental value for small space users (2,000-5,000 sq ft) dipped 0.6 per cent quarter on quarter to $7.75 psf in Q1 2010.
'We have yet to finalise the Q2 rental trend numbers but we fully expect to see a reversal in the downward rental trend,' says Mr Archibold. 'Assuming a growing economy, we expect rents to increase at a moderate pace for the remainder of 2010 and to pick up more rapidly in 2011 and 2012.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
New lease of life: VTB Building is expected to be part of the estimated 1.3 million sq ft of office space likely to be taken out of the market for redevelopment
Office prices set to rise over next 12 months: JLL
By KALPANA RASHIWALA
(SINGAPORE) The Republic's prime office capital values are poised to rise over the next 12 months in anticipation of rental increases. This is fuelling interest among overseas investors in the Singapore office market, says Jones Lang LaSalle.
'The number of investors coming to town and looking at offices has multiplied radically in the past three months. Most are looking to invest in a 12-18 month window rather than necessarily immediately,' says JLL's head of markets Chris Archibold.
These potential overseas investors are mostly European funds (primarily from Germany and the UK). Middle Eastern and US investors make up the other key groups of foreign investors keen on Singapore offices, he added.
JLL is forecasting that the average capital value for Prime Grade A (Raffles Place) office space will rise to $1,800 per square foot by the end of this year, up from the Q1 2010 figure of $1,700 psf. This is the level where capital values have stabilised since Q3 last year.
Office capital values are expected to appreciate further next year as the rental recovery gathers momentum amid strong economic fundamentals in Singapore and Asia, says JLL's MD for Singapore and South-east Asia Chris Fossick.
The picture for Singapore office rents has already started to brighten. Mr Archibold forecasts that for the whole of this year, the average monthly prime Grade A Raffles Place rental value could increase by about 5 per cent; growth will be limited by sentiment, given that the global economic situation is still pretty fragile.
'Notable leasing deals are expected to be completed over the next few months and this, combined with the trend of redeveloping CBD buildings into residential use, may see sufficient rebalancing of supply and demand for rents to stabilise over the next three to six months,' says Mr Archibold.
An estimated 1.3 million sq ft net lettable area of existing office space is expected to be taken out from the market assuming government approvals for redevelopment - mostly to residential use - are granted. The stock expected to be removed from the market includes Marina House, VTB Building, UIC Building and North Bridge Commercial Complex.
Leasing activity for new office projects began to pick up in Q3 last year. Mr Archibold says: 'We are aware of eight to 10 occupiers, studying potential leasing deals of about 100,000 sq ft each, that are now looking at their options.'
While such news may entice some investors to buy office space, not everyone who's sniffing out office deals these days is eyeing the leasing and rental recovery story.
CB Richard Ellis executive director (investment properties) Jeremy Lake highlights that two discernible profiles of investors have emerged in the Singapore office market over the past year.
'The first are those who intend to buy an office building and develop it into alternative use, mostly residential to cater to current strong demand for homes in the CBD. This group typically comprises residential developers that are targeting older Grade B office blocks, which are thus gaining a new lease of life from their latent value arising from residential development potential.
'The second group - which would include Singapore Reits and European and Asian property funds - are keen on high-quality office buildings for their rental income and capital appreciation potential given the office rental recovery underway.'
The second profile reflects the traditional reason for buying offices in Singapore.
More than $1 billion of Singapore office investment sales - cutting across both types of buyers - have been sealed since the beginning of last year. They include Parakou Building, Anson House, VTB Building, 1 Finlayson Green, Robinson Point and Marina House.
According to JLL, office investment volumes have picked up since the middle of last year across the Asia-Pacific, and capital values have bottomed in most markets. 'Foreign and domestic investors looking to buy based on rising rental income have a choice of markets to consider including Hong Kong, Singapore, Shanghai and Melbourne. Rents are likely to move upwards in these cities with capital values following in line over the next 12 months,' says Megan Walters, head of research for Asia Pacific Capital Markets at JLL.
JLL's Q1 Office Investor Rental Weather Map for Asia-Pacific shows that the sunniest point on the map is Hong Kong, where the pace of recovery in the Grade A office leasing market appears to be faster than expected. 'Demand has been driven by consolidation and from PRC companies looking to set up in Hong Kong,' Dr Walters said.
In Singapore, the average monthly prime Grade A Raffles Place rental value for small space users (2,000-5,000 sq ft) dipped 0.6 per cent quarter on quarter to $7.75 psf in Q1 2010.
'We have yet to finalise the Q2 rental trend numbers but we fully expect to see a reversal in the downward rental trend,' says Mr Archibold. 'Assuming a growing economy, we expect rents to increase at a moderate pace for the remainder of 2010 and to pick up more rapidly in 2011 and 2012.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
New lease of life: VTB Building is expected to be part of the estimated 1.3 million sq ft of office space likely to be taken out of the market for redevelopment
BT : Heeton launches new Grange Rd condominium
Business Times - 10 Jun 2010
Heeton launches new Grange Rd condominium
All 30 iLiv@Grange units available; Lumos to be relaunched
By UMA SHANKARI
HEETON Holdings plans to start construction of its new Grange Road condominium iLiv@Grange by September this year, chief operating officer Danny Low said at the project's unveiling yesterday.
The company also intends to relaunch The Lumos within the next two months. Sales of units in the Leonie Hill project have been put off since early 2008 as Heeton and its partner Koh Brothers waited for the luxury property market to recover.
At iLiv@Grange, all 30 apartments in the exclusive luxury development were made available to buyers from yesterday. But even though no units have been sold as yet, Heeton intends to proceed with construction and sell units as and when there is interest from buyers.
'We bought the site in 2007 and three years have passed,' said Mr Low. 'We are open to selling any unit, but either way, we will start construction, maybe by September.'
Apartments in iLiv@Grange Grange will go for 'above $3,000 per square foot (psf)', but the price could be lower on a psf basis for bigger apartments. Units in other projects in the vicinity are selling for $2,700-$3,500 psf, according to Mr Low.
iLiv@Grange's architecture is the creation of Mercurio Design Lab. The property also boasts interiors designed by yoo, the brainchild of John Hitchcox and Philippe Starck.
'iLiv@Grange was designed with ultimate living in mind, and no detail was spared to achieve this ambition,' said Mr Low. 'By combining the talents of MDL and yoo, we hope to create an architectural masterpiece that is also a celebration of haute couture living.'
iLiv@Grange, which is yoo's inaugural project in Singapore, promises impeccable landscapes and classy interiors. It offers a selection of one, two and three-bedroom apartments, each complete with furnishings such as sanitary wares and fittings from HansGrohe by Starck and Duravit by Starck.
There are also two double-storey penthouses furnished with private roof terraces and pools. The project is scheduled for completion in October 2013.
But while Heeton will sell units in iLiv@Grange, the group's focus will be on selling remaining apartments in the 53-unit The Lumos as the project approaches completion. Just 19 units in the development had been sold as at April 2010.
Units in The Lumos have gone for about $3,200 psf on average, Mr Low said. Heeton and Koh Brothers are now building a new showflat for the project, which will be relaunched in July or August. Pricing has not been decided yet, Mr Low said.
Heeton also has an upcoming development at Killiney Road on the site of the old Mitre Hotel. The company has engaged an international architect for the project and further details will be unveiled at a later date.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Haute couture living: iLiv@Grange's architecture is by Mercurio Design Lab. The property boasts interiors by yoo, the brainchild of John Hitchcox and Philippe Starck
Heeton launches new Grange Rd condominium
All 30 iLiv@Grange units available; Lumos to be relaunched
By UMA SHANKARI
HEETON Holdings plans to start construction of its new Grange Road condominium iLiv@Grange by September this year, chief operating officer Danny Low said at the project's unveiling yesterday.
The company also intends to relaunch The Lumos within the next two months. Sales of units in the Leonie Hill project have been put off since early 2008 as Heeton and its partner Koh Brothers waited for the luxury property market to recover.
At iLiv@Grange, all 30 apartments in the exclusive luxury development were made available to buyers from yesterday. But even though no units have been sold as yet, Heeton intends to proceed with construction and sell units as and when there is interest from buyers.
'We bought the site in 2007 and three years have passed,' said Mr Low. 'We are open to selling any unit, but either way, we will start construction, maybe by September.'
Apartments in iLiv@Grange Grange will go for 'above $3,000 per square foot (psf)', but the price could be lower on a psf basis for bigger apartments. Units in other projects in the vicinity are selling for $2,700-$3,500 psf, according to Mr Low.
iLiv@Grange's architecture is the creation of Mercurio Design Lab. The property also boasts interiors designed by yoo, the brainchild of John Hitchcox and Philippe Starck.
'iLiv@Grange was designed with ultimate living in mind, and no detail was spared to achieve this ambition,' said Mr Low. 'By combining the talents of MDL and yoo, we hope to create an architectural masterpiece that is also a celebration of haute couture living.'
iLiv@Grange, which is yoo's inaugural project in Singapore, promises impeccable landscapes and classy interiors. It offers a selection of one, two and three-bedroom apartments, each complete with furnishings such as sanitary wares and fittings from HansGrohe by Starck and Duravit by Starck.
There are also two double-storey penthouses furnished with private roof terraces and pools. The project is scheduled for completion in October 2013.
But while Heeton will sell units in iLiv@Grange, the group's focus will be on selling remaining apartments in the 53-unit The Lumos as the project approaches completion. Just 19 units in the development had been sold as at April 2010.
Units in The Lumos have gone for about $3,200 psf on average, Mr Low said. Heeton and Koh Brothers are now building a new showflat for the project, which will be relaunched in July or August. Pricing has not been decided yet, Mr Low said.
Heeton also has an upcoming development at Killiney Road on the site of the old Mitre Hotel. The company has engaged an international architect for the project and further details will be unveiled at a later date.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Haute couture living: iLiv@Grange's architecture is by Mercurio Design Lab. The property boasts interiors by yoo, the brainchild of John Hitchcox and Philippe Starck
ST : Heeton unveils Grange Road designer condo
Jun 10, 2010
Heeton unveils Grange Road designer condo
By Joyce Teo
SINGAPORE'S first apartments conceived by well-known design firm yoo were unveiled yesterday to upmarket buyers at possible prices of between $4 million and $10 million.
Three years after it bought the Grange Road site, developer Heeton Holdings showed off its innovative concept for the 30-unit designer condo iLiv@Grange. Most of the units are expected to command a price of more than $3,000 per sq ft.
It invited 160 potential buyers to the condo's show gallery yesterday evening, and is open to one-on-one price discussions with them.
Heeton chief operating officer Danny Low said most of the apartments would sell for more than $3,000 psf, in contrast to the surrounding projects' $2,700 to $3,500 psf going rate.
The firm is prepared to hold the project if need be, and will start construction soon, he said.
Former wet market operator Heeton bought the plot at around $1,706 psf per plot ratio - excluding development charges - back in the boom days of 2007.
And, like many other developers, it decided to delay the launch because of the global financial crisis.
In a bid to come up with a striking design and appeal to the high-end crowd, it has in the meantime switched the condo's architect from well-known local architect Timothy Seow and CPG Consultants to Italy's Mercurio Design Lab (MDL).
The result is that the 16-storey iLiv@Grange has morphed from the predictable rectangular-shaped condo that was originally planned, into a curvaceous facade that draws inspiration from the calla lily. Designer Massimo Mercurio told reporters yesterday that 'buildings need to be sexy'.
The landscaping and apartment interiors of iLiv@Grange are designed by yoo, founded by celebrated designer Philippe Starck and British developer John Hitchcox - who flew in for the media and potential buyers' session.
iLiv@Grange's one-, two- and three-bedroom apartments range from about 1,100 sq ft to 3,000 sq ft.
There are two double-storey penthouses at some 3,300 sq ft and 3,500 sq ft which come with three bedrooms, a private roof terrace and pool. Heeton is inviting price offers for the penthouses.
Each apartment is served by a private lift.
Mr Low said Heeton is considering holding a roadshow in Shanghai to showcase the development and will put a showflat at the site by the third quarter of next year.
Heeton's next project will be on the former Mitre Hotel site in Killiney Road. Designed by an unnamed British architect, it may be released for sale in the first half of next year.
And it is looking to relaunch The Lumos in Leonie Hill in July or August at $3,000 psf and upwards. The project was first released for sale in 2007.
--------------------------------------------------------------------------------
The result is that the 16-storey iLiv@Grange has morphed from the predictable rectangular-shaped condo that was originally planned, into a curvaceous facade that draws inspiration from the calla lily.
The iLiv@Grange designer condo. -- PHOTO: HEETON HOLDINGS
Heeton unveils Grange Road designer condo
By Joyce Teo
SINGAPORE'S first apartments conceived by well-known design firm yoo were unveiled yesterday to upmarket buyers at possible prices of between $4 million and $10 million.
Three years after it bought the Grange Road site, developer Heeton Holdings showed off its innovative concept for the 30-unit designer condo iLiv@Grange. Most of the units are expected to command a price of more than $3,000 per sq ft.
It invited 160 potential buyers to the condo's show gallery yesterday evening, and is open to one-on-one price discussions with them.
Heeton chief operating officer Danny Low said most of the apartments would sell for more than $3,000 psf, in contrast to the surrounding projects' $2,700 to $3,500 psf going rate.
The firm is prepared to hold the project if need be, and will start construction soon, he said.
Former wet market operator Heeton bought the plot at around $1,706 psf per plot ratio - excluding development charges - back in the boom days of 2007.
And, like many other developers, it decided to delay the launch because of the global financial crisis.
In a bid to come up with a striking design and appeal to the high-end crowd, it has in the meantime switched the condo's architect from well-known local architect Timothy Seow and CPG Consultants to Italy's Mercurio Design Lab (MDL).
The result is that the 16-storey iLiv@Grange has morphed from the predictable rectangular-shaped condo that was originally planned, into a curvaceous facade that draws inspiration from the calla lily. Designer Massimo Mercurio told reporters yesterday that 'buildings need to be sexy'.
The landscaping and apartment interiors of iLiv@Grange are designed by yoo, founded by celebrated designer Philippe Starck and British developer John Hitchcox - who flew in for the media and potential buyers' session.
iLiv@Grange's one-, two- and three-bedroom apartments range from about 1,100 sq ft to 3,000 sq ft.
There are two double-storey penthouses at some 3,300 sq ft and 3,500 sq ft which come with three bedrooms, a private roof terrace and pool. Heeton is inviting price offers for the penthouses.
Each apartment is served by a private lift.
Mr Low said Heeton is considering holding a roadshow in Shanghai to showcase the development and will put a showflat at the site by the third quarter of next year.
Heeton's next project will be on the former Mitre Hotel site in Killiney Road. Designed by an unnamed British architect, it may be released for sale in the first half of next year.
And it is looking to relaunch The Lumos in Leonie Hill in July or August at $3,000 psf and upwards. The project was first released for sale in 2007.
--------------------------------------------------------------------------------
The result is that the 16-storey iLiv@Grange has morphed from the predictable rectangular-shaped condo that was originally planned, into a curvaceous facade that draws inspiration from the calla lily.
The iLiv@Grange designer condo. -- PHOTO: HEETON HOLDINGS
ST : Yanlord and Reco Yizhong to develop Chengdu site
Jun 10, 2010
Yanlord and Reco Yizhong to develop Chengdu site
A UNIT of Singapore-listed developer Yanlord Land Group and an affiliate of GIC Real Estate are jointly developing a large prime residential site in the south-west Chinese city of Chengdu.
GIC Real Estate's affiliate, Reco Yizhong, will work with Yanlord to develop the project, backed by US$300 million (S$424 million) in registered capital.
GIC Real Estate is the property arm of the Government of Singapore Investment Corporation (GIC).
Yanlord has already notched up successes in Chengdu, including Hengye International Plaza, a commercial development, and Hengye Star Garden, a high-end residential development.
To facilitate the new project, the two parties have set up a joint venture firm, Yanlord Property Investments (YPI) - 75 per cent of it owned by Yanlord's unit Yanlord Land and 25 per cent owned by Reco.
The joint venture has, in turn, teamed up with a unit of Yanlord Land, Yanlord Land Chengdu, to set up a new subsidiary, Yanlord Real Estate Chengdu, to undertake the Chengdu development.
Yanlord Land Chengdu has a 60 per cent stake in the new unit while YPI has a 40 per cent stake in the entity, which has a registered capital of US$300 million.
The development site is in Panchenggang in the Jinjiang district of Chengdu.
The upcoming project, with a total planned gross floor area of about 390,660 sq m, will be connected to one of the city's metro lines via the Gangguanchang station, operational in 2012.
It will also be located close to attractions in the city such as the Sha River and Tazishan Park, an announcement from the Yanlord Land Group said yesterday.
Tazishan Park is an area set aside for Chengdu's ecological park and the construction of schools.
The project site is also close to Chengdu's central business district, Tianfu Square.
Chengdu, with a population of about 11 million, is in China's Sichuan province.
HARSHA JETHNANI
Yanlord and Reco Yizhong to develop Chengdu site
A UNIT of Singapore-listed developer Yanlord Land Group and an affiliate of GIC Real Estate are jointly developing a large prime residential site in the south-west Chinese city of Chengdu.
GIC Real Estate's affiliate, Reco Yizhong, will work with Yanlord to develop the project, backed by US$300 million (S$424 million) in registered capital.
GIC Real Estate is the property arm of the Government of Singapore Investment Corporation (GIC).
Yanlord has already notched up successes in Chengdu, including Hengye International Plaza, a commercial development, and Hengye Star Garden, a high-end residential development.
To facilitate the new project, the two parties have set up a joint venture firm, Yanlord Property Investments (YPI) - 75 per cent of it owned by Yanlord's unit Yanlord Land and 25 per cent owned by Reco.
The joint venture has, in turn, teamed up with a unit of Yanlord Land, Yanlord Land Chengdu, to set up a new subsidiary, Yanlord Real Estate Chengdu, to undertake the Chengdu development.
Yanlord Land Chengdu has a 60 per cent stake in the new unit while YPI has a 40 per cent stake in the entity, which has a registered capital of US$300 million.
The development site is in Panchenggang in the Jinjiang district of Chengdu.
The upcoming project, with a total planned gross floor area of about 390,660 sq m, will be connected to one of the city's metro lines via the Gangguanchang station, operational in 2012.
It will also be located close to attractions in the city such as the Sha River and Tazishan Park, an announcement from the Yanlord Land Group said yesterday.
Tazishan Park is an area set aside for Chengdu's ecological park and the construction of schools.
The project site is also close to Chengdu's central business district, Tianfu Square.
Chengdu, with a population of about 11 million, is in China's Sichuan province.
HARSHA JETHNANI
ST : Two more development sites up for sale
Jun 9, 2010
Two more development sites up for sale
ANOTHER two development sites have been launched for sale.
The first is the 52-unit Goodrich Park, a collective sale site in Simon Lane.
Credo Real Estate, which is marketing the freehold site, said its sellers are looking for offers in the region of $80 million to $85 million.
This would translate to a land rate of $585 to $620 per sq ft (psf) per plot ratio, excluding development charges. The sellers are currently waiting to hear from the Urban Redevelopment Authority about whether any development charge will be due.
Built in the 1980s, Goodrich Park sits on a land area of 97,703 sq ft and is near Kovan MRT station.
Under the 2008 Master Plan, the site is zoned for residential development with a plot ratio of 1.4 and an allowable height of up to five storeys.
This allows for a total gross floor area of about 136,784 sq ft.
The site can be turned into approximately 120 apartment units with an average size of 1,100 sq ft, depending on layout and configuration, said Credo managing director Karamjit Singh.
The second site, the 21-unit Cavenagh Mansions near Orchard Road, is fully owned by a private company, Teck Jin.
It has a land area of about 19,813 sq ft and under the 2008 Master Plan, it is zoned for residential use at a plot ratio of 2.1.
Marketing agent Knight Frank said the guide price for the plot is $55 million to $60 million, which would translate to a land price of $1,258 psf to $1,367 psf.
The site has a potential gross floor area of about 45,768 sq ft, inclusive of an additional 10 per cent space for balconies.
An estimated development charge of $2.567 million, inclusive of 10 per cent balcony space, is payable.
The site can be redeveloped into 57 apartments of 800 sq ft on average and the buyer may expect to break even at about $1,750 psf to $1,850 psf, Knight Frank said.
It was reportedly put out for sale in 2006 at an asking price of just $27 million.
Last week, two estates - Waldorf Mansions off Balestier Road and Foh Pin Mansion in Charlton Road - were launched for collective sale.
JOYCE TEO
Two more development sites up for sale
ANOTHER two development sites have been launched for sale.
The first is the 52-unit Goodrich Park, a collective sale site in Simon Lane.
Credo Real Estate, which is marketing the freehold site, said its sellers are looking for offers in the region of $80 million to $85 million.
This would translate to a land rate of $585 to $620 per sq ft (psf) per plot ratio, excluding development charges. The sellers are currently waiting to hear from the Urban Redevelopment Authority about whether any development charge will be due.
Built in the 1980s, Goodrich Park sits on a land area of 97,703 sq ft and is near Kovan MRT station.
Under the 2008 Master Plan, the site is zoned for residential development with a plot ratio of 1.4 and an allowable height of up to five storeys.
This allows for a total gross floor area of about 136,784 sq ft.
The site can be turned into approximately 120 apartment units with an average size of 1,100 sq ft, depending on layout and configuration, said Credo managing director Karamjit Singh.
The second site, the 21-unit Cavenagh Mansions near Orchard Road, is fully owned by a private company, Teck Jin.
It has a land area of about 19,813 sq ft and under the 2008 Master Plan, it is zoned for residential use at a plot ratio of 2.1.
Marketing agent Knight Frank said the guide price for the plot is $55 million to $60 million, which would translate to a land price of $1,258 psf to $1,367 psf.
The site has a potential gross floor area of about 45,768 sq ft, inclusive of an additional 10 per cent space for balconies.
An estimated development charge of $2.567 million, inclusive of 10 per cent balcony space, is payable.
The site can be redeveloped into 57 apartments of 800 sq ft on average and the buyer may expect to break even at about $1,750 psf to $1,850 psf, Knight Frank said.
It was reportedly put out for sale in 2006 at an asking price of just $27 million.
Last week, two estates - Waldorf Mansions off Balestier Road and Foh Pin Mansion in Charlton Road - were launched for collective sale.
JOYCE TEO
ST : MCC Land top bidder for 99-year Sembawang plot
Jun 9, 2010
MCC Land top bidder for 99-year Sembawang plot
$131.7m bid much higher than expected; analysts say release of more sites yet to have major impact
By Joyce Teo
A CHINA-BASED developer has lodged the top bid of $131.7 million - considerably higher than expected - for a 99-year leasehold plot in Sembawang which attracted seven bids in all.
MCC Land (Singapore) said if it is awarded the job, it will build a 300-unit low-rise condominium on the site, at the junction of Sembawang Road and Canberra Drive.
Managing director Tan Zhiyong said MCC's proposed development will feature lush landscaping.
Part of state-owned Metallurgical Corp of China, MCC put in a bid that works out to $387.3 per sq ft per plot ratio (psf ppr).
CBRE Research executive director Li Hiaw Ho had expected it to fetch $280 to $310 psf ppr, or $95 million to $105 million.
In a re-run of the government land tender earlier this month, Malaysia's SP Setia International came in second, with a bid of $122.55 million or $360.35 psf ppr.
Other bidders included Far East Organization and MCL Land. Frasers Centrepoint was last, with $85 million or $250 psf ppr.
The Sembawang site has a permissible gross floor area of 340,085 sq ft.
The top bid is on the bullish side and suggests that the ramping up of land supply has not had a major impact on the market, said Colliers International's director for research and advisory Tay Huey Ying.
'We are not seeing exorbitant bids but the results show that developers are still hungry for land,' Ms Tay said.
The Government has said it will make available a record amount of land for sale in the second half of this year.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the number of bids was lower than in some recent tenders, but that this could be partly because the site is less attractive than some others.
He expects more subdued bidding for future sites as developers will soon be spoilt for choice. 'Once they have acquired a sizeable piece of land, they are unlikely to be as aggressive in future tenders,' he added.
MCC Land's Mr Tan said the project's break-even cost will be $600-plus psf. Units will sell for $700 to $800 psf when launched in six to nine months. By comparison, units at The Estuary nearby sold in March to April for $660 to $800 psf, and in the resale market, units in a freehold low-rise condo, Northwood, went for $680 to $730 psf from January to April.
This is MCC's second residential site here. In March, it won a tender for an executive condo site in Yishun - its maiden development project here - with a bid of $127.8 million or $281 psf ppr.
joyceteo@sph.com.sg
MCC Land top bidder for 99-year Sembawang plot
$131.7m bid much higher than expected; analysts say release of more sites yet to have major impact
By Joyce Teo
A CHINA-BASED developer has lodged the top bid of $131.7 million - considerably higher than expected - for a 99-year leasehold plot in Sembawang which attracted seven bids in all.
MCC Land (Singapore) said if it is awarded the job, it will build a 300-unit low-rise condominium on the site, at the junction of Sembawang Road and Canberra Drive.
Managing director Tan Zhiyong said MCC's proposed development will feature lush landscaping.
Part of state-owned Metallurgical Corp of China, MCC put in a bid that works out to $387.3 per sq ft per plot ratio (psf ppr).
CBRE Research executive director Li Hiaw Ho had expected it to fetch $280 to $310 psf ppr, or $95 million to $105 million.
In a re-run of the government land tender earlier this month, Malaysia's SP Setia International came in second, with a bid of $122.55 million or $360.35 psf ppr.
Other bidders included Far East Organization and MCL Land. Frasers Centrepoint was last, with $85 million or $250 psf ppr.
The Sembawang site has a permissible gross floor area of 340,085 sq ft.
The top bid is on the bullish side and suggests that the ramping up of land supply has not had a major impact on the market, said Colliers International's director for research and advisory Tay Huey Ying.
'We are not seeing exorbitant bids but the results show that developers are still hungry for land,' Ms Tay said.
The Government has said it will make available a record amount of land for sale in the second half of this year.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the number of bids was lower than in some recent tenders, but that this could be partly because the site is less attractive than some others.
He expects more subdued bidding for future sites as developers will soon be spoilt for choice. 'Once they have acquired a sizeable piece of land, they are unlikely to be as aggressive in future tenders,' he added.
MCC Land's Mr Tan said the project's break-even cost will be $600-plus psf. Units will sell for $700 to $800 psf when launched in six to nine months. By comparison, units at The Estuary nearby sold in March to April for $660 to $800 psf, and in the resale market, units in a freehold low-rise condo, Northwood, went for $680 to $730 psf from January to April.
This is MCC's second residential site here. In March, it won a tender for an executive condo site in Yishun - its maiden development project here - with a bid of $127.8 million or $281 psf ppr.
joyceteo@sph.com.sg
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