Location a main factor; Chip Eng Seng wins over competitive bids with winning offer exceeding asking price by 27%
Proprietors at Changi Garden have cashed in big with the estate offering for 27 percent over its collective asking cost.
Mainboard-listed developer Chip Eng Seng Corp wins eight different bidders to catch the residential land at Changi garden for $248.8 million.
That implies the owner of the 60 units will get between $2.14 million and $2.27 million while the 12 penthouses will go for $4.03 million to $4.74 million.
Proprietors of the 12 shops are relied upon to get between $4.7 million and $7.08 million each, said showcasing operator Edmund Tie and Co.
The value works out to $888 per sq ft per plot proportion (psf ppr) for the 200,093 sq ft site.
In light of the land rate, the evaluated make back the initial investment cost for another advancement would be about $1,350 psf to $1,400 psf. The freehold property at the intersection of Upper Changi Road North and Jalan Mariam had one major in addition to when it hit the market – there had not been any private land sold inside a 2.8 km span since 2013.
Mr Terence Lian, Huttons Asia’s senior district director head, investment sales, told The Straits Times yesterday: “Due to land scarcity, there is a robust demand for en bloc sites, as evident in the competitive bidding for Changi Garden.”
He included: “The site will have the capacity to take care of the demand for lodging for the individuals who work in Changi Business Park and Changi Airport.”
There is still a considerable measure of interest for locales comparable in size to Changi Garden that have high development potential.
Mr Alan Cheong, senior director of research and consultancy at Savills, noted: “Unless there are adverse policy changes that stymie this free market-led regeneration programme, we expect middle-aged non-landed developments to head this route, and perhaps even older landed housing estates may also band together for an en bloc sale.”
Chip Eng Seng’s activities here incorporate Grandeur Park Residences, which was propelled in March this year, 100 Pasir Panjang, Junction Nine and Nine Residences and The Parc condominium.
The firm, in a joint venture with Heeton Holdings and KSH Holdings, launch a 99-year private site in Woodleigh Lane by Woodleigh MRT for $700.7 million, or $1,110 psf ppr, in July.
The government land sale site, which will be adjacent to the upcoming Bidadari New Town, could oblige 735 units.
DBS Group Research, which has a purchase approach the organization, stated: “The greater part of the gathering’s private undertakings are significantly sold and it has an expected development net request book of $538.4 million as toward the finish of the second quarter… Moreover, the honor of late tenders at Woodleigh and Changi should help the gathering’s income and net resource esteem in the medium term.”
Chip Eng Seng shares closed up 0.6 per cent or 0.5 cent at 90.5 cents.
Source: http://www.straitstimes.com/business/changi-garden-sold-en-bloc-for-2488m
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