Wednesday, August 13, 2008

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URA's 99-yr site receives one bid for Tampines Site

An Urban Redevelopment Authority tender for a 99-year leasehold condominium site at Tampines Ave 1/Ave 10 facing Bedok Reservoir closed on Tuesday receiving just one bid. Boon Keng Development bid S$84.63 million or S$117.96 per square foot of potential gross floor area. The bid was way below market expectations.

The following are some forumers' responses to the report at the Singapore Property Forum:

Forumer 1 wrote:
Signs of Bad Times ....At $117.96 psf.....what will be the launch psf at....perhaps below $400 psf Anybody out there can share some light....

Forumer 2 wrote:
I believe even if the developer sell below $500 psf, they willl still make tons of money.... Let's just wait, this is the condo to watch out for.....

Forumer 3 wrote:
Buyer Galore.haha dream on. Construction cost for low end condo is about $300psf and the cost of land is $118. To breakeven, developer has to sell more than $500psf. So, most likely it will be above $600psf. Unless developer doesnt want to make money and do it for charity !

Forumer 4 wrote:
Of course, developers want to sell high high price. Of course developers would want to pass on the increase in buidling costs to conusmers. Can they? So far, it doesn't look like they can. Otherwise, we won't have a 63% unsold inventory. The question is whether buyers want to buy at $600 psf or even $500 psf or even $400 psf ??? with the economy looking worse each quarter and jobs have quickly gone ?? It's about supply and demand. Supply is increasing with more projects getting TOP. Demanding is decreasing as jobs and earnings decline. So, with plunging sales and shares, and increasing costs and inventory, how long can developers hold? Buyers are not stupid these days.

May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase


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