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May 26, 2011
Healthy interest expected for Punggol exec condo site
By Esther Teo, Property Reporter
ANOTHER executive condo (EC) site in Punggol has been put up for sale, with experts expecting healthy interest with bids of around $320 million.
The 25,164 sq m parcel at the junction of Punggol Way and Punggol Field has a maximum gross floor area of 75,493 sq m that could yield 720 units.
The 99-year leasehold site is near the Punggol LRT and MRT stations, the bus interchange and close to the Tampines and Kallang-Paya Lebar expressways.
Experts say the success of the recent EC launch of Prive in Punggol - it is now 95 per cent sold - has been a good test for the local market.
SLP International research head Nicholas Mak said about four to seven bids can be expected, coming in at $350 to $390 per sq ft (psf) per plot ratio (ppr), or between $284 million and $317 million.
Mr Mak noted that the site is a fairly attractive one, within walking distance of the Punggol town centre.
However, bids are likely to be more measured as there are still five EC projects potentially yielding 2,800 units that have yet to be launched by the HDB, he added.
'The review of the HDB income ceiling is also unlikely to have a large impact on the EC market as it does not mean that everyone will start buying build-to-order flats after the review... There will always be buyers interested in the EC segment,' Mr Mak said.
Mr Png Poh Soon, Knight Frank's head of research and consultancy, expects bids of $310 to $330 psf ppr - or $242 million to $255 million. He expects the eventual selling price of the project to range from $700 to $720 psf.
Ten EC sites have been sold since the start of last year. Those sold early last year attracted up to 11 bids each but the number of bidders has fallen since as property cooling measures were imposed, Mr Png said.
'Despite the decrease in bidders, prices of EC sites close to MRT stations or located in well-established regional hubs held up well,' he added.
'For example, the last EC site awarded in April on Tampines Central 7 closed at $392 psf ppr - the highest EC site for all of 2010 and 2011 so far.'
ECs have condo-like facilities and are an upmarket hybrid of public and private housing.
Separately, 147 of the 315 units Belysa in Pasir Ris were snapped by 5pm yesterday, the first day of sales.
May 26, 2011
More developers may target EC sites
The draw: Bigger buyer pool if HDB income ceiling is raised
By Cheryl Lim
THE impending move to raise the income ceiling for public housing could prompt more developers to target sites zoned for executive condominiums (ECs) and Design, Build and Sell Scheme projects, say industry experts.
The Government has said that it may increase the income ceiling from $8,000, which would allow households with a higher combined income to buy a Housing Board (HDB) flat.
If that happens, analysts expect the income ceiling for ECs - now at $10,000 - to be raised correspondingly.
Market experts say that developers who focus more on private residential projects may also bid for government land tenders to tap into this increased pool of buyers.
However, the increased buyer pool for HDB homes could also depress private property market prices.
Mr Png Poh Soon, head of consultancy and research at Knight Frank, said: 'Buyers who are looking to purchase mass-market homes might be lured to buy executive condominiums and public housing now that they might qualify for it.
'Some developers believe that potentially, mass-market home prices could become cheaper as other players adapt more competitive strategies to attract buyers in the same income bracket.'
Mr Png said that the market will be keen on the increased supply of land expected to flow from the second half of this year's Government Land Sales programme.
'We've seen strong sales figures in April and in the absence of any new cooling measures, there's no reason why developers should shy away from tenders,' he added.
Last month, developers sold 1,788 residential units, the highest monthy volume since November last year.
But Mr Png added that the injection of land will put pressure on companies that already have a lot of government sites in their landbanks.
He said that such developers might decide to roll out their projects earlier to reduce their risk and ensure a better cash flow.
'But companies with fewer government sites may be more aggressive when bidding, especially when well-located plots with good amenities nearby come up for sale.'
Knight Frank released an analysis yesterday detailing the holdings by developers of government land stock.
The survey was based on sites launched from last year to the present. It recorded the number of units being developed on a site, any unsold flats or in the case of undeveloped land, estimated number of units each site could support.
The Sim Lian Group topped the list with 2,781 units, City Developments was next with 1,271 and United Engineers third with 1,101.
cherlim@sph.com.sg
Healthy interest expected for Punggol exec condo site
By Esther Teo, Property Reporter
ANOTHER executive condo (EC) site in Punggol has been put up for sale, with experts expecting healthy interest with bids of around $320 million.
The 25,164 sq m parcel at the junction of Punggol Way and Punggol Field has a maximum gross floor area of 75,493 sq m that could yield 720 units.
The 99-year leasehold site is near the Punggol LRT and MRT stations, the bus interchange and close to the Tampines and Kallang-Paya Lebar expressways.
Experts say the success of the recent EC launch of Prive in Punggol - it is now 95 per cent sold - has been a good test for the local market.
SLP International research head Nicholas Mak said about four to seven bids can be expected, coming in at $350 to $390 per sq ft (psf) per plot ratio (ppr), or between $284 million and $317 million.
Mr Mak noted that the site is a fairly attractive one, within walking distance of the Punggol town centre.
However, bids are likely to be more measured as there are still five EC projects potentially yielding 2,800 units that have yet to be launched by the HDB, he added.
'The review of the HDB income ceiling is also unlikely to have a large impact on the EC market as it does not mean that everyone will start buying build-to-order flats after the review... There will always be buyers interested in the EC segment,' Mr Mak said.
Mr Png Poh Soon, Knight Frank's head of research and consultancy, expects bids of $310 to $330 psf ppr - or $242 million to $255 million. He expects the eventual selling price of the project to range from $700 to $720 psf.
Ten EC sites have been sold since the start of last year. Those sold early last year attracted up to 11 bids each but the number of bidders has fallen since as property cooling measures were imposed, Mr Png said.
'Despite the decrease in bidders, prices of EC sites close to MRT stations or located in well-established regional hubs held up well,' he added.
'For example, the last EC site awarded in April on Tampines Central 7 closed at $392 psf ppr - the highest EC site for all of 2010 and 2011 so far.'
ECs have condo-like facilities and are an upmarket hybrid of public and private housing.
Separately, 147 of the 315 units Belysa in Pasir Ris were snapped by 5pm yesterday, the first day of sales.
May 26, 2011
More developers may target EC sites
The draw: Bigger buyer pool if HDB income ceiling is raised
By Cheryl Lim
THE impending move to raise the income ceiling for public housing could prompt more developers to target sites zoned for executive condominiums (ECs) and Design, Build and Sell Scheme projects, say industry experts.
The Government has said that it may increase the income ceiling from $8,000, which would allow households with a higher combined income to buy a Housing Board (HDB) flat.
If that happens, analysts expect the income ceiling for ECs - now at $10,000 - to be raised correspondingly.
Market experts say that developers who focus more on private residential projects may also bid for government land tenders to tap into this increased pool of buyers.
However, the increased buyer pool for HDB homes could also depress private property market prices.
Mr Png Poh Soon, head of consultancy and research at Knight Frank, said: 'Buyers who are looking to purchase mass-market homes might be lured to buy executive condominiums and public housing now that they might qualify for it.
'Some developers believe that potentially, mass-market home prices could become cheaper as other players adapt more competitive strategies to attract buyers in the same income bracket.'
Mr Png said that the market will be keen on the increased supply of land expected to flow from the second half of this year's Government Land Sales programme.
'We've seen strong sales figures in April and in the absence of any new cooling measures, there's no reason why developers should shy away from tenders,' he added.
Last month, developers sold 1,788 residential units, the highest monthy volume since November last year.
But Mr Png added that the injection of land will put pressure on companies that already have a lot of government sites in their landbanks.
He said that such developers might decide to roll out their projects earlier to reduce their risk and ensure a better cash flow.
'But companies with fewer government sites may be more aggressive when bidding, especially when well-located plots with good amenities nearby come up for sale.'
Knight Frank released an analysis yesterday detailing the holdings by developers of government land stock.
The survey was based on sites launched from last year to the present. It recorded the number of units being developed on a site, any unsold flats or in the case of undeveloped land, estimated number of units each site could support.
The Sim Lian Group topped the list with 2,781 units, City Developments was next with 1,271 and United Engineers third with 1,101.
cherlim@sph.com.sg
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