With the recent spate of news on quality-related issues at residential developments at Eden Residences and Trivelis, you might be wondering how to ensure that the condominium that you are buying is of good quality. How can we check? Through words of mouth? Or search the news to find any reported issues within the project?
Fret not as the Building & Construction Authority is here to help home buyers!
Since 1989, the Construction Quality Assessment System (CONQUAS)was introduced in Singapore to serve as a standard assessment system on the quality of building projects. The assessment consists of 3 components – structural works, architectural works and M&E works. SPK shall not get too technical with the details here but if readers are interested to understand more on the CONQUAS system, you can visit the link here.
What might interest readers more would probably be the results and findings from the CONQUAS system? Let’s see who are the top developers, contractors and projects, rank in terms of their CONQUAS score!
No surprises here. The long-established big-name Singapore developers, like City Developments, Far East Organization and Allgreen Properties hold the top spots in delivering the best quality residential projects here. So, the next time when you are looking for a private condominium, you might want to stick to one of the developers listed here!
To find the full list of projects and their CONQUAS score, you can visit the link here.
Two Government Land Sale tenders for sites at Jiak Kim Street and Fourth Avenue were concluded yesterday. Without surprise, the sites saw keen interests from developers, with the site at Jiak Kim Street setting a new benchmark.
Let us look at the different groups of bidders who were present at this round of GLS tender.
1. The Aggressor – Allgreen Properties
After snatching up Royalville and Crystal Tower last week for S$478 mil and S$181 mil, Allgreen Properties is back on the headlines again with the highest tender price of S$553 mil or S$1,540 psf ppr for the site at Fourth Avenue. What a shopping spree! Within 2 weeks, Allgreen Properties has invested S$1.2 billion in 3 development sites!
This is probably not going to be the end of Allgreen Properties’ acquisition spree yet. Allgreen Properties also put in a bid of S$926 mil for the site at Jiak Kim Street, but it lost out to Frasers Centrepoint’s top bid of S$955 mil. Seems like Allgreen Properties still has appetite for more acquisitions and having lost out in the bid for Jiak Kim site, it will now have another S$1 bil to spare for other sites.
2. The Aggressor 2 – CDL/Hong Leong
Hong Leong came close to winning the tender for the site at Jiak Kim Street. Its tender price was only S$5 mil short of the winning tender price from Frasers Centrepoint. Its sister company, City Developments also joined the bidding with Logan Property. For the site at Fourth Avenue, Hong Leong and CDL went in together with a bid that was just 4% short of the winning tender price from Allgreen Properties.
So far, Hong Leong and CDL have only managed to clinch one site this year – Amber Park through collective sales. In these 2 GLS land tender, Hong Leong and CDL were not too far off from the winning tender prices and they appear to have good appetite for further land acquisitions. We might see more actions from Hong Leong and CDL in upcoming GLS and collective sales, particularly in the prime districts.
3. The Conservative Aggressors – Frasers Centrepoint, Bukit Sembawang, UOL/UIC
Frasers Centrepoint, Bukit Sembawang, UOL and UIC seem to have exercised some form of risk management in their aggressive pursuit of land. Frasers Centrepoint came in with the highest tender price for the Jiak Kim site, whilst UOL/UIC was not too far behind Frasers Centrepoint in its tender price. Bukit Sembawang came in second in the tender for the Fourth Avenue sites. All 3 developers were selective in their bidding and only participated in one out of the two available site tenders.
4. The Dreamer – Wheelock Properties
With a tender offer that is 23% below the winning bidder and 13% below Guocoland, the second lowest bidder for the Jiak Kim site, maybe it is time for Wheelock Properties to revisit its bidding strategy and plans?
5. The Absentees – Foreign Developers
Only 3 foreign developers – China Overseas Holdings/CSC Land, Logan Property and Cheung Kong Properties, participated in the tenders for the 2 sites.
Yes, it is a 3rd time lucky for Crystal Tower owners. It was reported on the Business Times that Allgreen Properties had emerged as the winning bidder to acquire Crystal Tower, in a fiercely contested tender that attracted a total of 12 bids. Allgreen Properties offered S$180.65 mil for the freehold site, reflecting a land rate of S$1,840 psf ppr. Allgreen’s offer price is a huge premium of 31% above the asking price of the owners!
An aggressive bid by Allgreen? What was the developer thinking?
Few months back, the nearby Sloane Court Hotel site was snapped up by Tiong Seng and Ocean Sky at a land rate of S$1,616 psf ppr (including Development Charges). Allgreen’s offer price for Crystal Tower would be 14% higher than what Tiong Seng and Ocean Sky paid for their site.
SPK estimates that based on Allgreen’s offer price, the breakeven selling price for the new project will be around S$2,300 psf to S$2,400 psf. To make a decent profit margin of 10% to 15%, Allgreen will probably have to sell this project at S$2,600 psf to S$2,750 psf.
Was Allgreen overly-aggressive in its bid? Did it overpay for the site?
These are difficult questions to answer at this point in time.
But what we can be sure is that developers are returning to the prime districts and this is probably a hint of their optimism on the prime residential property segment. Allgreen’s price might look high at this point in time, but if the property prices in CCR move in line with the optimism of the developers, then what Allgreen is pricing in right now might not be too far away from the prices in future.
Any brave soul out there who bought the penthouse at S$9.8 mil?
Base on Allgreen’s offer price, the penthouse owner will receive about S$12.3 mil while the rest of the owners will pocket around S$6 mil to S$6.6 mil each. If you had bought the penthouse at S$9.8 mil, you could have easily pocketed a tidy profit of close to S$700k, after deducting stamp duty and additional seller stamp duty!
Congratulations to the 28 multi-millionaires at Crystal Tower!