17-06-2011, 06:07 AM
Crazy pricing, just absolute madness! Sim Lian must think we're all millionaires!
Jun 17, 2011
$880,000: Priciest HDB flats launched in Tampines
By Daryl Chin
THE priciest-ever new HDB flats went up for sale yesterday under a Design, Build and Sell Scheme (DBSS) development launched in Tampines.
The most expensive five-room flats at Centrale 8 by developer Sim Lian will set buyers back a cool $880,000.
That works out to a whopping $750 per square foot - a price tag more often seen on suburban condominiums.
PropNex chief executive Mohamed Ismail said he did a double take when he first heard about the prices.
'No doubt it's in Tampines, which is a mature estate with many good things going for it, but it is still extremely high for a public housing flat,' he said.
DBSS flats are public housing units designed and built by private-sector developers and they typically come with more luxurious fittings.
Still, the 178 five-room units at the development, which measure between 1,163 and 1,173 sq ft each, will cost almost twice as much as more standard flats sold in the recent Tampines Build-To-Order (BTO) project, where a 1,216 sq ft unit cost up to $444,000.
Smaller-sized units at the project, which is on Tampines Central 8, also do not come cheap.
For instance, a three-room flat measuring up to 667 sq ft will cost up to $510,000, while a four-room unit taking up 904 sq ft is priced up to $683,000.
Prior to this, the priciest HDB flats had belonged to other DBSS projects such as The Peak@Toa Payoh and City View@Boon Keng, where five-room flats were sold at around $720,000.
Market watchers noted that despite the hefty price tag, Sim Lian did not pay a record-busting price for the land. It paid $261 psf per plot ratio (ppr) for the 21,132 sq ft site.
Earlier this month, a Pasir Ris Central site was awarded for $281 psf ppr, while a Clementi Avenue 4 plot was awarded for $271 psf ppr in March.
Said Mr Ismail: 'Other developers will have a keen eye on this, as setting a record price does not necessarily mean a good take-up rate. Even more so with the recent government assurances of more BTO flats in mature estates.'
SLP International's head of research Nicholas Mak said while the location is good, it did not justify the high price tag. 'Another side effect,' he said, 'is that it might encourage resale flat sellers in the area to increase their prices, as buyers would not need to wait for their units to be built.'
When asked the rationale for the high pricing, a Sim Lian spokesman said: 'The premium is due to its locale in Tampines Regional Centre with mature amenities such as banks, three shopping malls and the upcoming Integrated Lifestyle Hub.
'It is also within walking distance to the existing Tampines MRT Station and the future downtown line 3 MRT interchange.'
House-hunter James Goh, 34, said he has been eyeing a place in the east for a while, but a five-roomer at the development might be too costly for him.
But the architect added that given the choice location of the flats, he might consider downsizing.
The 708 units are expected to be built by 2014.
Jun 17, 2011
$880,000: Priciest HDB flats launched in Tampines
By Daryl Chin
THE priciest-ever new HDB flats went up for sale yesterday under a Design, Build and Sell Scheme (DBSS) development launched in Tampines.
The most expensive five-room flats at Centrale 8 by developer Sim Lian will set buyers back a cool $880,000.
That works out to a whopping $750 per square foot - a price tag more often seen on suburban condominiums.
PropNex chief executive Mohamed Ismail said he did a double take when he first heard about the prices.
'No doubt it's in Tampines, which is a mature estate with many good things going for it, but it is still extremely high for a public housing flat,' he said.
DBSS flats are public housing units designed and built by private-sector developers and they typically come with more luxurious fittings.
Still, the 178 five-room units at the development, which measure between 1,163 and 1,173 sq ft each, will cost almost twice as much as more standard flats sold in the recent Tampines Build-To-Order (BTO) project, where a 1,216 sq ft unit cost up to $444,000.
Smaller-sized units at the project, which is on Tampines Central 8, also do not come cheap.
For instance, a three-room flat measuring up to 667 sq ft will cost up to $510,000, while a four-room unit taking up 904 sq ft is priced up to $683,000.
Prior to this, the priciest HDB flats had belonged to other DBSS projects such as The Peak@Toa Payoh and City View@Boon Keng, where five-room flats were sold at around $720,000.
Market watchers noted that despite the hefty price tag, Sim Lian did not pay a record-busting price for the land. It paid $261 psf per plot ratio (ppr) for the 21,132 sq ft site.
Earlier this month, a Pasir Ris Central site was awarded for $281 psf ppr, while a Clementi Avenue 4 plot was awarded for $271 psf ppr in March.
Said Mr Ismail: 'Other developers will have a keen eye on this, as setting a record price does not necessarily mean a good take-up rate. Even more so with the recent government assurances of more BTO flats in mature estates.'
SLP International's head of research Nicholas Mak said while the location is good, it did not justify the high price tag. 'Another side effect,' he said, 'is that it might encourage resale flat sellers in the area to increase their prices, as buyers would not need to wait for their units to be built.'
When asked the rationale for the high pricing, a Sim Lian spokesman said: 'The premium is due to its locale in Tampines Regional Centre with mature amenities such as banks, three shopping malls and the upcoming Integrated Lifestyle Hub.
'It is also within walking distance to the existing Tampines MRT Station and the future downtown line 3 MRT interchange.'
House-hunter James Goh, 34, said he has been eyeing a place in the east for a while, but a five-roomer at the development might be too costly for him.
But the architect added that given the choice location of the flats, he might consider downsizing.
The 708 units are expected to be built by 2014.
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