Low Keng Huat (Singapore)

Ah Huat is the highest bidder for the DBSS site at Upper Serangoon.

http://info.sgx.com/webcoranncatth.nsf/V...C00103C4F/$file/ANCE011210.pdf?openelement

$206 psf + $200psf construction cost... Breakeven is $450psf?

Assuming selling price of $550psf, not much meat...
For a 1200psf 5 room flat, the selling price is $660k????

$660k for a 5-room flat in SengKang. Wow... that's expensive.


The location is not that fantastic

Is your construction cost a calculated figure or is it a guestimate? Does it really cost $200psf to build a DBSS project? *curious*

Guesstimate loh..

Lum Chang Construction won the contract for building Esparina EC.
GFA = 549002 sq ft
Contract value = S$119.4 million
Cost per sq ft = $217 per sq ft.

DBSS probably is cheaper to build but I doubt omitting a swimming pool will reduce the cost significantly.
Building a swimming pool probably will not cost $17 x 549002 = $9.3 million???

Took a quick glance on their 2010 annual report. Although the company have cash of 120+m, their trade payable have increase from 94m in 2009 to 251m in 2010 which make their net operating cash jump from 40m in 2009 to 156m in 2010. My knowledge on asset type/construction company is very little so I would like to ask whether the large increase of trade payable is normal in the construction and asset play sector?

http://www.channelnewsasia.com/stories/s...58/1/.html

Only 2 bidders from this plot of land and the difference between the two bids is $42m!

(01-12-2010, 07:24 PM)yawnyawn Wrote: http://www.channelnewsasia.com/stories/s...58/1/.html

Only 2 bidders from this plot of land and the difference between the two bids is $42m!

Wonder if they used an actual photo of the site in that article, because that looks like it was taken at sengkang area with buangkok mrt station in the background. I'm not too sure about the location of the site, but asking buyers to pay $660k for a 5rm is stretching the average salaryman a little too far. At such prices, I wonder if there will be any real interest.

(02-12-2010, 06:36 AM)Jon-san Wrote:

(01-12-2010, 07:24 PM)yawnyawn Wrote: http://www.channelnewsasia.com/stories/s...58/1/.html

Only 2 bidders from this plot of land and the difference between the two bids is $42m!

Wonder if they used an actual photo of the site in that article, because that looks like it was taken at sengkang area with buangkok mrt station in the background. I'm not too sure about the location of the site, but asking buyers to pay $660k for a 5rm is stretching the average salaryman a little too far. At such prices, I wonder if there will be any real interest.

Location of the DBSS site as follows,

http://www.hdb.gov.sg/fi10/fi10297p.nsf/...ON%20ROAD/$file/location+plan.pdf

Market watchers expect the price to be around $500-540 psf. Anybody living in the area can comment on the price?

Assuming $500 psf and a 1200 sq ft 5-room flat, the selling price will be around 600k. With a housing grant of $30k, the final selling price is $570k.

The current selling price for a 5 years old 5-room flat in Rivervale is around $450k.

The parcel of land is not near to any LRT or MRT.
But probably got a good view of Punggol park and serangoon river.

I think something is fishy to have such large gap of bidding difference between Sim Lian and Kwan Hwee. Even the premium Tampines area do not has such a large gap between 1st and 2nd bidder. Another suspect is that there are only 2 bidders for this project.

I can imagine all the bosses of these construction firms discussing over dinner on what bidding price they will offer but secretly make a pact to fly aeroplane for Kwan Hwee only. Just my imagination. hehe.

Wow.. MrEngineer, your imagination is fantastic.

I would like to think that LKH was more aggressive simply because most of their projects are coming to the end and they need to look for more contracts.
In this case, $2217 per sqm is not very ideal...

Actually, with HDB building so aggressively, i wonder whether is there any meat left for DBSS or EC.