Thursday, 9 February 2012

Property : Top bid of S$532psf ppr for Bedok South Ave 3 site

Property: Top bid of S$532psf ppr for Bedok South Ave 3 site. A consortium comprising Far East
Organisation's F.E. Lakeside, Frasers Centrepoint's FCL Topaz and Sekisui House Singapore submitted the top bid of S$345.9m or S$534.22psf ppr for a 99-year leasehold plot at Bedok South Avenue. The site has a maximum gross floor area of about 647,491sf, yielding an estimated 600 units comprising a mix of one- to four-bedroom apartments.
(Source: The Business Times)

UOB Kay Hian Comments: The measured seven bids for the site despite jittery market conditions is indicative of developers’ view that although prices are likely to moderate by 10-15%, demand is likely to sustain. We expect the breakeven price for the site at S$850-900psf and selling prices at above S$1,050psf. The bid is reasonable in our view considering nearby Optima @ Tanah Merah is selling in the subsale market at S$1,000-1,100psf. Bedok Residences, a hot new launch located above the Bedok MRT (one MRT away), is currently selling at a 20% premium to our price assumptions.

[Blog commentary] The bid price of S$532psf ppr is reasonable, but having the final selling price of S$1000+ psf still seems high for a OCR condo. We need a cold chill wind to bring the prices back to sanity  <S$1000 psf for heartland condos.

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