Property in Singapore: Land parcel at Miltonia Close attracts seven bids

Tuesday, August 24, 2010

Land parcel at Miltonia Close attracts seven bids

SINGAPORE : A land parcel at Miltonia Close attracted seven bids when the tender closed on Tuesday.
The highest bid of S$165 million came from Hoi Hup Realty and Sunway Developments, which are jointly pitching for the project.
This translates to S$406 per square foot per plot ratio (psf ppr).
The bid is some 31 per cent higher than the second highest one at S$126 million which was submitted by Master Contract Services. The remaining bids ranged between S$97.9 million and S$125.3 million.
They came from developers like Allgreen Properties as well as Superport, a unit of MCL Land.

The site was launched by Housing & Development Board (HDB) on July 2. It spans 27,000 square metres (sqm) and has a maximum gross floor area of 37,800 sqm. With a 99-year lease term, the land parcel is slated for strata landed housing, condominium housing or flats development. HDB said the project completion period is 72 months from the date the tender is accepted.

Leonard Tay, director, CBRE Research, said the developer who wins the site will likely develop a five-storey low-rise condominium. He said: "The top bid of S$165 million or S$406 psf ppr could reflect a breakeven cost of around S$700 to S$750 psf should a low-rise condominium be developed. Condominium units in this new project could possibly sell above S$800 psf."

He added; "For comparison against transactions of other developments in the vicinity from April to August, units in The Estuary, which was launched in April 10, transacted at S$650 to S$850 psf, while those in the 16-year-old Orchid Park Condominium were sold at S$550 to S$700 psf." - CNA/ms

* Visit http://chorkim.goh.virtualhomes.sg/ for property listings.

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GOOD CLASS BUNGALOWS

Buying the ultimate home

With only about 2,400 units of good class bungalows in the market, almost any GCB would be a rare find.

By Arthur SimPublished: August 13 2009,The Business Times
THEY are wealthy and successful people who can probably afford to buy any home they want, but many of them are being drawn towards good class bungalows (GCBs). There are only 39 designated GCB areas in Singapore and Binjai Park is one of them.

However, these areas are not all equal. Some GCB locations are more prestigious than others. For instance, the current asking price for GCB land in the Nassim area is between $1,500-$2,000 per square foot (psf) whereas in Chestnut Drive, GCBs have been known to have transacted at around $550 psf.

There are also pros and cons to buying either an old bungalow or a newly built one. 'Some old GCBs have unique architectural features and come with a rich heritage. Buyers, however, have to be prepared to set aside some money to refurbish and upgrade the building and fit it out with modern conveniences,'

New buildings, he says, can be tailored to specific tastes but also be expensive. But what usually pushes up prices is the location. A martial arts movie star who picked up a GCB at Binjai Park for $19.8 million at around $871.36 psf earlier this year appears to have gotten a good buy. It was reported that the seller of the house had incurred a loss of $1.2 million on the deal, having bought the property in early 2007 for $21 million, or $924 psf. The selling price for a newly built GCB will generally be higher than that of an old GCB. 'The choice normally depends on whether the buyer is price sensitive,'. A new house might take as long as two years to build although it is more likely to be built to the owner's precise specifications.

If one is looking for exclusivity, the most expensive GCBs are generally in the Nassim and Lady Hill areas. This is followed by those in the Tanglin vicinity such as the Rochalie, Bishopsgate and Chatsworth areas.On the prices, GCBs in the Tanglin vicinity range from $1,200-$1,400 psf for the top of this category.

'Other popular GCB areas are in the Swettenham, Pierce, Dalvey, Cluny Park areas where prices can range from $1,100-$1,300 psf', '1,000 psf is the standard price for an average GCB. Prices have been moving up over the last six months. Permanent residents are permitted to buy landed property, but only with permission from the government. Foreigners cannot easily buy a GCB or any other landed home here as the government restricts foreign ownership of residential property. However, foreigners who take up Singapore citizenship may buy landed property. The exception to the restrictions is the gated residential enclave of Sentosa Cove, where ownership rules were eased to allow foreigners who are not permanent residents to buy landed homes or land plots, though permission is still needed.

Apart from some restrictions on ownership, one of the common misconceptions when buying a GCB is that some buyers unknowingly pay a premium for a home that actually falls outside the designated GCB areas. 'Some buyers think that as long as a bungalow has a land area of 15,070 sq ft, it is considered a GCB, not knowing there are only 39 designated areas,' he added. Before buying any home, it is also useful to do some checks. For instance, it is useful for a surveyor to be called in to assess and ascertain the site boundary for issues such as encroachment. A structural surveyor or engineer can also be engaged to assess the structural integrity of a house, especially if it is an old or conserved bungalow. It is also important to check with the relevant authorities about possible drainage and road reserves as this could affect the the boundary setbacks. Finally, the terrain, shape of the site and frontage are other physical characteristics that are important, especially if one is going to build a new house. But with only about 2,400 units of GCBs in the market, almost any GCB would be a rare find. 'The majority are owned by the who's who - and are seldom placed for sale in the market. On the contrary, there's an increasing pool of buyers made up of high net worth individuals, GCB collectors as well as permanent residents who are looking to buy GCBs for their own use,' he adds.

GCB buyers are a discerning group of investors who also have a different view on what makes a good investment. 'Yields are not part of the investment criteria - which is typically less than 2 per cent,' said Mr Han. Instead most see GCBs as a good long-term asset class of investment, 'especially in land-scarce Singapore where land value appreciates over time'. And Mr Han believes that the outlook for GCBs is also good.