En-bloc fever continues to rage in the property market, with freehold development Changi Garden attracting a winning tender bid of S$248.8 million, which surprised analysts.
CEL Real Estate Development’s offer to buy over the estate is close to 30 per cent higher than the asking price, and analysts said that it was unexpected given that the mixed development, with residential and retail units, is not in a central location. Chip Eng Seng said that it intends to develop a low-rise residential condominium on the site, comprising around 320 units, with full facilities and possibly some retail shops.
The estate, located at the junction of Upper Changi Road North and Jalan Mariam, comprises 60 apartments, 12 penthouses and 12 shops. Chip Eng Seng beat eight other bidders to win the tender. The purchase price works out to S$888 per square foot (psf) per plot ratio for the 200,093 sqft site.
CEL Real Estate Development’s offer to buy over the estate is close to 30 per cent higher than the asking price, and analysts said that it was unexpected given that the mixed development, with residential and retail units, is not in a central location. Chip Eng Seng said that it intends to develop a low-rise residential condominium on the site, comprising around 320 units, with full facilities and possibly some retail shops.
The estate, located at the junction of Upper Changi Road North and Jalan Mariam, comprises 60 apartments, 12 penthouses and 12 shops. Chip Eng Seng beat eight other bidders to win the tender. The purchase price works out to S$888 per square foot (psf) per plot ratio for the 200,093 sqft site.
Martin Modern - developed by GuocoLand, 5 mins walk from Great World City MRT on the Thomson East Coast MRT Line close to Orchard Road shopping belt, Great World City & Robertson Quay
In the past, developers focused on prime districts for collective sales, but today it is all over the island, even though Changi Garden is located opposite Changi Prison.
Analysts noted that the asking price is already considered high, but the developer is willing to bid even higher therefore translating to higher prices when the new development is launched towards the end of next year. Market analysts said the price reflects the confidence the developer has in the property market in the short term, that prices will increase. The estimated break-even price is calculated to be around from S$1,350 psf to S$1,400 psf.
Analysts noted that the asking price is already considered high, but the developer is willing to bid even higher therefore translating to higher prices when the new development is launched towards the end of next year. Market analysts said the price reflects the confidence the developer has in the property market in the short term, that prices will increase. The estimated break-even price is calculated to be around from S$1,350 psf to S$1,400 psf.
6 Derbyshire is a freehold jewel in prime District 11, near upcoming Novena medical hub, in between the two major shopping belts of Novena and Orchard
Competition for land parcels in Singapore is also getting hotter as foreign developers especially cash rich developers from China join in Singapore's feverish en bloc market as they are confident of Singapore's future. Amid limited options under the government land sales (GLS) programme, a few have plunged headlong into the game while several others are sussing out information on available en bloc sites and learning how the process works. It may only be a matter of time before more will emerge with en bloc trophies in hand, market watchers say.
Due to severe land constraint in Singapore, current supply of GLS land parcels are very limited and therefore faced with land supply shortage, developers have to aggressively bid for enbloc sites to stock up on their landbanks.
Due to severe land constraint in Singapore, current supply of GLS land parcels are very limited and therefore faced with land supply shortage, developers have to aggressively bid for enbloc sites to stock up on their landbanks.
Two weeks ago, Chinese firm Kingsford Huray Development, owned by Chinese-citizen-turned-Singaporean Cui Zhengfeng, acquired Normanton Park, a former government housing project off Ayer Rajah Expressway, for S$830.1 million this month. This follows the purchase of freehold condominum project Sun Rosier for S$271 million by SingHaiyi Properties and Huajiang International Corporation, both controlled by Chinese tycoon Gordon Tang and wife Chen Huaidan. In May last year, Qingjian Realty bought former HUDC estate Shunfu Ville for S$638 million.
Chinese developers are also keen to hold commercial properties here for recurring income. In July, a buyer said to be linked to the Zhao family from China acquired freehold industrial complex Citimac.
Talk in the market is that the SingHaiyi joint venture was in such hurry to seal the deal for Sun Rosier that it came without representation from lawyers and without amendments to any terms in the collective sales agreement.
Chinese developers are also keen to hold commercial properties here for recurring income. In July, a buyer said to be linked to the Zhao family from China acquired freehold industrial complex Citimac.
Talk in the market is that the SingHaiyi joint venture was in such hurry to seal the deal for Sun Rosier that it came without representation from lawyers and without amendments to any terms in the collective sales agreement.
Todayonline - 17 Oct 2017 article: "Changi Garden sold for S$248.8 million; 27% above asking price"
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