Residential Market News Extract - 17 October 2012

High bid for site next to Tanah Merah MRT

A 99-year leasehold residential site along New Upper Changi Road has drawn a higher-than-expected top bid, pointing to a still-bullish sentiment among property developers here.

The land parcel sitting next to Tanah Merah MRT received 11 bids in all, the Urban Redevelopment Authority (URA) said. The highest offer came from Keppel Land unit Sherwood Development, which bid $434.6 million or $791.42 per square foot per plot ratio (psf ppr).

This bid was 17 per cent above that for a nearby plot in Tanah Merah Kechil sold to Fragrance Group and World Class Land in August.

KepLand said yesterday it plans to develop about 700 units measuring between 500 sq ft and 1,400 sq ft in one- to four-bedroom configurations when it secures the site.

Augustine Tan, president (Singapore residential) at KepLand, remarked: "Demand for well-located suburban homes here remains resilient, and we're confident that this new development will garner positive interest from genuine home-buyers and upgraders looking for quality properties in the established and popular Tanah Merah precinct."

Demand has been strong for projects in the vicinity: The eCO condominium, a short distance away in Bedok South Avenue 3, was the top-selling private residential site last month, with 402 units sold at a median price of $1,283 psf.

Despite the Government's recent move to cap home-loan tenures, ERA Realty Network's key executive officer Eugene Lim said: "This is a sign developers are still hungry for well-located mass-market plots."

Analysts are projecting a break-even cost of between $1,150 and $1,250 psf based on KepLand's bid, and expect an average selling price above $1,300 psf.

The second highest offer in the tender came from Bayfront Land, a tie-up between Fragrance Group and World Class Land. Its bid was $405.9 million, or $739.15 psf ppr. The lowest bid was from Vantage Properties, which offered $275 million, or $500.84 psf ppr.

Some of the offers were defensive, noted ERA's Mr Lim. The fourth highest bid, for example, came from a joint venture between Far East Organization, Frasers Centrepoint and Sekisui House, the same developers behind eCO.

Source: Business Times – 17 October 2012

 

Punggol development: Phase 2 plan unveiled

The Housing & Development Board (HDB) yesterday unveiled plans for the next phase of Punggol's development, including a new Northshore District that will be carved out for more seafront public housing.

Northshore District will be one of seven distinct waterfront housing areas, of which Waterway East and Waterway West Districts are already under development.

Not only will Northshore District be home to Punggol's tallest residential buildings, at 29 storeys, they will also boast fully underground car parks in a bid to provide a greener and more spacious environment at the ground level.

Both Northshore and Matilda Districts can expect public housing projects to be launched over the next five years.

Based on Punggol's masterplan, the projected number of private and HDB homes in Punggol is 96,000. To date, some 26,400 units of public housing have been completed, with 15,800 units launched or under construction. On the private housing end, 6,400 have been launched or are under construction.

This puts Punggol on track to complete 48,000 units by 2016.

Of the 957 hectares (ha) that is Punggol, some 422 ha have been set aside for residential use, with the remaining 535 ha designated for other uses, including transportation networks, schools, commercial, and religious purposes, added HDB.

National Development Minister Khaw Boon Wan said: "We are now ready to launch the next phase of Punggol's development. Punggol Phase II will cover developments over the next 15 years and beyond."

Other plans to enliven Punggol include the introduction of a waterfront Market Village bordering on the south of the Coney Channel, a Learning Corridor designated to house future education institutions and a Creative Cluster designed to host new commercial activities.

Residents can also look forward to more recreational spaces and commercial amenities such as a new sports complex, a horse riding centre and a hawker centre.

To ensure that Punggol does not lose its green features, more green parks and corridors will be integrated with the waterfront promenades. In addition, the old Punggol Road will be conserved as a heritage trail and transformed as a pedestrianised green corridor for joggers and cyclists.

Mr Khaw was speaking at the HDB Awards 2012, where he presented 21 awards to HDB's consultants and contractors to recognise their achievements and innovative efforts in undertaking public housing developments.

The "Punggol: Discover Possibilities" exhibition will be launched at HDB Hub to recap the progress of Punggol to date, share with the public the short-term plans and invite feedback for the longer-term plans.

The exhibition ends on Oct 28.

Source: Business Times – 17 October 2012