Property firms raise rents in central Tokyo

Property firms raise rents in central Tokyo

 

Average rent in five central wards up 12% last month from June 2007

 

(TOKYO) Japan’s leading estate firms including Mitsui Fudosan Co have begun proposing big rent rises in central Tokyo, where office vacancy rates have been hovering near 20-year lows.

 

These rock-bottom vacancy rates have helped Mitsui Fudosan and rival Mitsubishi Estate Co weather tougher times for much of Japan’s property market, which has been hit by tighter credit and stricter apartment building codes.

 

Mitsui Fudosan, Japan’s largest real estate developer, said yesterday that it was in talks with tenants to raise office rents in central Tokyo by an average of 10-15 per cent.

 

The country’s second-largest developer, Mitsubishi Estate, also said that it was in talks with tenants to raise office rents in the Marunouchi area of central Tokyo by 15-20 per cent.

 

Another major developer, unlisted Mori Trust Co, said that it was preparing to raise office rents in central Tokyo’s Minato district by an average of 20 per cent.

 

The office vacancy rate in Tokyo’s 23 wards stood at 2.1 per cent last month – the lowest since the bursting of Japan’s asset-inflated bubble economy in 1990, according to Ikoma Data Service System, a research firm specialising in the market for office buildings.

 

Average rent in Tokyo’s five central wards last month was 15,120 yen (S$199) per approximately 3.3 sq m. That marks a 12 per cent increase from 13,530 yen in June of last year, according to the most recently available data from Ikoma.

 

‘Tokyo’s office market is extremely tight,’ said Ikoma researcher Mitsuhiro Asada.

 

‘With signs of an economic recovery, many companies started hiring more people, and that’s making them want to move to bigger offices,’ he said.

 

He added that such conditions would likely last for a while, helping real estate firms’ businesses.

 

Mitsubishi Estate said that it was seeking the rent increase given the tight office market situation in the Marunouchi area. It said that its vacancy rate in that district was just 0.19 per cent as at the end of March, the lowest since it started disclosing the data in 2003.

 

Shares of Mitsui Fudosan tumbled 3.8 per cent to 2,440 yen and those of Mitsubishi Estate lost 2.7 per cent to 2,675 yen at the end of trade yesterday. — Reuters

 

Source: Business Times

A place for a meeting of minds

A place for a meeting of minds

 

one-north, encompassing Biopolis and Fusionopolis, is Singapore’s icon of the knowledge economy, reports CLARISSA TAN

 

Brain space: Biopolis (above) was conceived to put Singapore on the global map of the biomedical sciences industry; global pharmaceuticals corporation Novartis houses its Novartis Institute for Tropical Diseases at Chromos. The institute ‘is dedicated to discovering treatments for diseases of the developing world, including tuberculosis, malaria and dengue fever’, says its chairman Paul Herrling

 

THERE I was, standing in the middle of a gleaming complex of buildings, with blocks bearing names like Chromos, Proteos, Genome and Matrix. I was, of course, at Biopolis, conceived to put Singapore on the global map of the biomedical sciences industry. Biopolis itself is only one part of a vast development called one-north that is emerging around the Buona Vista area.

 

This 200 ha area is ‘Singapore’s icon of the knowledge economy’, according to the one-north website. It encompasses Biopolis and Fusionopolis, a sprawling area dedicated to the media and information businesses.

 

In its widest interpretation, one-north includes Rochester Park, Insead business school and one campus of the Nanyang Technological University. Clearly, it is planned to be a kind of ‘brain space’ and creative nerve for Singapore.

 

But does the talent really like working here? I approached a man and a woman chatting to each other and posed them that question.

 

The woman’s answer was emphatic. ‘Yes, it’s convenient. It’s got everything – there are restaurants, cafes, shops. There’s a shared system among all the corporations here, to take care of all our grocery and other needs.’ They declined to give their names but said that they work at the Institute of Bioengineering and Nanotechnology.

 

And for those who think that the location is somewhat out of the way, there is the view of Edison Liu, executive director of the Genome Institute of Singapore (GIS). one-north is practically ‘in the middle of the city’, he said, speaking to BT in a phone interview as he was travelling in the US.

 

‘We are only some 20 minutes from all the major hospitals and universities. It’s not like some other research centres, where you’re stuck in the outskirts of suburbia.’

 

GIS is the national flagship programme for genomic sciences, and occupies – of course – the Genome block at Biopolis.

 

‘Of course I’m biased, but we are always counted among the top 10 genome centres in the world,’ said Prof Liu. ‘Within a 25-hundred-mile radius in Asia, there is no centre with better firepower than us.’ He said that the institute has made its mark in the areas of stem cell genomics, systems pharmacology (which is research related to cancer) and genomic technology.

 

Slightly more than half of GIS staff is of foreign origin, said Prof Liu, who himself is from the US but is now a Singapore permanent resident. In that sense, the institute shares the international flavour of other big research institutes.

 

As I walked along the paved streets of Biopolis, it seemed to me that the place, barring the occasional person in a business suit, has the feel of a large university. There is a big food court for the more budget-minded, but also espresso pit-stops and several restaurants.

 

These eateries are not only great places to grab a meal, but also to swap ideas and contacts, according to Paul Chapman of GlaxoSmithKline. He is head of GSK’s Centre for Research in Cognitive and Neurodegenerative Disorders.

 

‘While it is certainly possible to have this kind of interaction if you are located on a separate campus, there is no substitute for bumping into someone at the food court or the cafe,’ he said. ‘Those casual interactions, where people get to know each other and then discover their mutual scientific interests, just happen more easily at a place like Biopolis.’

 

Opportunity for study

 

Novartis, another global pharmaceuticals corporation, houses its Novartis Institute for Tropical Diseases (NITD) at Chromos.

 

The institute ‘is dedicated to discovering treatments for the diseases of the developing world, including tuberculosis, malaria and dengue fever’, said Paul Herrling, NITD’s head of corporate research and chairman.

 

‘Biopolis’s location in Singapore, a place where dengue is endemic, gives researchers the opportunity to study first-hand the epidemiology of the disease, and enables access to affected patients.’

 

one-north is not entirely about the medical and biotech sectors. Swissnex Singapore describes itself as a platform of the Swiss Embassy, ‘facilitating knowledge and competencies’ in science, education, art and innovation between Switzerland, Singapore and South-east Asia.

 

‘Being at Biopolis brings us closer to the stakeholder,’ said executive director Suzanne Hraba-Renevey. ‘We are more visible and accessible to our users and have easy access to our partners from academia, research, government and business.’

 

The entire Biopolis project itself is yet to be completed, and consists of several phases. Across the road looms Fusionopolis 1, comprising 24 floors, two towers and 120,000 square metres of floor area.

 

The building, which represents phase one of the Fusionopolis project, is dedicated to infocomms, or media-related firms that use the latest in technology. It is equipped with satellite access and the necessary power and bandwith for intensive computer use. There are also service apartments, a roof-top swimming pool and a performance theatre.

 

Fusionopolis 1 has just opened its doors to tenants, and Asian Food Channel was the first to make it its home. When I visited the premises of the cable-and-satellite channel on the 12th floor, there were still boxes to be unpacked and everything was spanking new.

 

‘We think three to five years ahead,’ said managing director Hian Goh. ‘In 12 months’ time, there’s going to be an MRT at the bottom of this building. There will be a Cold Storage and shops. There’s a sky garden – it’s beautiful.’

 

The new office is bright, airy and full of glass partitions. There is a room at the rear to be turned into a kitchen-cum-studio.

 

‘That’s where we’ll have people like Gordon Ramsay doing his shows,’ said Maria Brown, managing director of acquisitions and programming. ‘We’ll also be able to invite people over.’

 

I imagined the celebrity chef, brow furrowing, expletives flying, sticking a knife in a roasted carcass and calling it done.

 

‘Please invite me,’ I said.

 

Source: Business Times

Katong Mall up for sale with $220m-$250m tag

Katong Mall up for sale with $220m-$250m tag

 

By ARTHUR SIM

 

KATONG Mall has been put up for collective sale at the indicative price of $220 million to $250 million.

 

The 78,158 sq ft site is zoned for commercial use and has a plot ratio of up to 3.6.

 

According to marketing agent Jones Lang LaSalle (JLL), the strata-titled 258-unit mall can be redeveloped into a commercial or retail project with a gross floor area (GFA) of up to 281,369 sq ft, subject to official approval and payment of development charge if applicable.

 

Based on this GFA, the unit land price works out to be between $782 and $888 per sq ft per plot ratio (psf ppr).

 

JLL local director (investments) Stella Hoh estimates the site could yield up to some 490 commercial/ retail units of an average size of 400 sq ft.

 

Ms Hoh also said outline planning permission has been obtained for a mixed residential and commercial development, with an approved plot ratio of up to 3.

 

This translates to a GFA of up to 234,474 sq ft, subject to official approval and payment of development charge if applicable, and could yield up to 100 residential and 185 commercial/retail units of average sizes of 1,200 sq ft and 400 sq ft respectively.

 

‘This scheme would appeal to developers who are looking to capitalise on the demand for residential units in the established Marine Parade enclave,’ Ms Hoh said.

 

In September 2007 it was reported that a majority owner held 72 per cent of Katong Mall, with the rest divided among about 100 owners. It was also reported that some minority owners were unhappy about a collective sale.

 

But Ms Hoh reiterated that 80 per cent approval for the collective sale has been received.

 

Source: Business Times

Bids for residential site fall short of expectations

Bids for residential site fall short of expectations

URA closes tender after top bid of just $203 psf ppr for the 99-yr leasehold site

 

 

By EMILYN YAP

 

 

A RESIDENTIAL site in Choa Chu Kang Drive has attracted a top bid of just $203 per square foot per plot ratio (psf ppr), reflecting weak sentiment in the property market.

 

The Urban Redevelopment Authority (URA) yesterday closed the tender for the 99-year leasehold site, which has a maximum gross floor area of 572,600 square feet.

 

The tender drew five bids – Tian Hock Properties came out tops with an offer of $116.01 million, or $203 psf ppr.

 

This was 7.4 per cent higher than the next highest bid – from Sim Lian Land, at $108 million or $189 psf ppr. The lowest offer came from HHA Properties – at $80.2 million or $140 psf ppr.

 

Analysts had expected bids ranging from $230 to $270 psf ppr, or $131.7 million to $154.6 million in all.

 

‘The lower quantum of the bid prices is a reflection of the current subdued mood in the residential market, taking into account the current cautious environment and the relatively lacklustre take-up of new projects in the first four months of the year,’ said CB Richard Ellis Research’s executive director Li Hiaw Ho. But five bids reflect ‘fairly good interest in the site’, he added.

 

The director of research and advisory at Colliers International, Tay Huey Ying, noted the absence of larger developers such as Far East Organisation, saying this could be a sign of weak market sentiment.

 

While the bids for this site were ‘healthier compared with recent ones received for the Ten Mile Junction site’, Ms Tay also feels the bids were in ‘the lower range of expectations’.

 

A site at Choa Chu Kang Road and Woodlands Road, where the state-owned Ten Mile Junction currently sits, recently drew a top bid of only $61 million or $162 psf ppr.

 

Market observers believe that URA may nevertheless award the site. According to Ms Tay, the ‘bid price is fair under current market conditions’, and the project may result in a breakeven cost of about $550 psf and a selling price of $610-$620 psf.

 

Mr Li also reckons the top bid for Ten Mile Junction was ‘reasonably fair’. Based on the bid, he estimates a breakeven cost of $580-$600 psf, which would translate to a selling price of about $650 psf.

 

URA launched the tender for the Choa Chu Kang Drive site in March and will decide on a possible award after evaluating the bids.

 

Source: Business Times

New Mapletree project

New Mapletree project

 

MAPLETREE, a real estate unit of Singapore investment company Temasek, said yesterday it is developing property worth US$320 million in China’s Guangdong through its private real estate fund.

 

The Mapletree India-China Fund will have an 80 per cent stake in the project, which includes seven blocks of serviced apartments and a mall, while Guangzhou Southern-Donald Scientific Technology Co owns the remainder, Mapletree said in a statement. Mapletree said the newly launched fund has raised US$1 billion so far, half from Mapletree and the other half from an unidentified international institutional investor. The targeted fund size is about US$1.5 billion, it said.

 

The 33-hectare project in the Nanhai district of Foshan city is the fund’s third in China, and also includes a business park. Named Nanhai Business City, it will be built over five to eight years. The two earlier investments are a US$144 million residential and retail development in Xi’an and the US$121 million acquisition of an office block in Beijing’s central business district, it said. – Reuters

 

Source: Business Times

Developer joins bid for Shaw Brothers

Developer joins bid for Shaw Brothers

Yeung Kwok-keung has HK$3b loan from chairman of Henderson Land

 

 

By JANE MOIR

IN HONG KONG

 

 

 

A GUESSING game over who will bid for Run Run Shaw’s flagship Shaw Brothers intensified over the weekend as a property developer emerged as a prime contender.

 

 

Businessman Yeung Kwok-keung has received HK$3 billion (S$523.2 million) in financing from Henderson Land Development chairman Lee Shau-kee to make a bid for Shaw Brothers, according to local press reports.

 

Mr Yeung is chairman of mainland property company Country Garden (Holdings), and his apparent interest in the media firm has perplexed some observers, fuelling speculation that he may be a front man for another interested party.

 

Earlier this month, media tycoon Mr Shaw announced that he is looking to sell his stake in entertainment flagship Shaw Brothers, the largest shareholder of Hong Kong’s No 1 broadcaster.

 

According to an announcement by Shaw Brothers, the 100-year-old media veteran is in talks with ‘representatives of interested parties’ regarding a possible sale.

 

Mr Shaw holds 75 per cent of Shaw Brothers, a holding company with a 26 per cent stake in Television Broadcasts (TVB), Hong Kong’s leading broadcaster.

 

Shaw Brothers said that no agreement has been reached on a sale, but press reports have tipped a number of private equity firms to be interested in the stake, including the Tianjin-based Bohai Fund and the Blackstone Group, run by former financial secretary Antony Leung.

 

The apparent interest of Country Garden’s Mr Yeung is one of the less obvious ones, although there are suggestions that he may be interested in the property assets of the company. Shaw Brothers has a large property jointly held in Clearwater Bay in the New Territories.

 

It is understood that the company has for some time been trying to get planning permission to develop the large plot into a residential area.

 

‘He (Mr Yeung) is a property developer, so it’s natural for him to be interested,’ said Allan Ng, executive director of investment bank BOC International. ‘But that piece of land has taken the company years to get government approval for redevelopment.’

 

One of the main stumbling blocks has been to improve road access to the site, which is situated along a busy stretch of road in the New Territories.

 

Henderson‘s Mr Lee told reporters that his loan to Mr Yeung did not reflect any interest to become involved in the operations of Shaw Brothers or TVB.

 

A sale to a Hong Kong or Chinese bidder, however, would ease any concerns which Beijing might have that the stake remains in local hands.

 

In 2006, a bid by PCCW boss Richard Li to sell to foreign investors was thwarted after politics seemed to come into play.

 

It has long been expected that Mr Shaw would seek to offload his stake in the media company, given recent bouts of ill health. In 2006, the tycoon was believed to have discussed a possible sale with a consortium of local tycoons.

 

Analysts had suggested that Rupert Murdoch’s Newscorp and Malaysian broadcaster Astro could be potential buyers, but were given slim chances because of their foreign status.

 

TVB in March announced that its net profit last year rose 6 per cent to HK$1.26 billion as advertising revenue increased against the backdrop of a robust economy.

 

The company also recorded a one-off gain of HK$140 million during the year from a sale of a 20 per cent stake in unit TVB Pay Vision Holdings Ltd. Turnover during 2007 was HK$4.33 billion, up 3 per cent from 2006.

 

Revenue from terrestrial television broadcasting rose to HK$2.37 billion from HK$2.2 billion the previous year.

 

Source: Business Times

Govt agencies asked to tighten CBD space usage

Govt agencies asked to tighten CBD space usage

New exercise targets efficient use to free up more space for private sector

 

By ARTHUR SIM

 

 

(SINGAPORE) Government agencies in the Central Business District have been told to re-evaluate their office space needs in light of the current office space crunch, even if these agencies own their buildings.

 

It is understood that the Ministry of Finance (MOF), which oversees all government office relocation projects for government ministries and statutory boards, has recently issued a directive asking these government bodies to look into the possibility of compacting their offices.

 

Asked to comment, a spokesman for MOF said: ‘MOF and MND (Ministry of National Development) are working with government agencies to make more efficient use of office space. This is part of the government’s effort to better manage its resources.’

 

While MOF did not reveal to what extent this exercise is being undertaken, it is expected to be on top of the 20,000 sq m of office space that Finance Minister Tharman Shanmugaratnam said the government would free up in February.

 

The Urban Redevelopment Authority (URA) for one, has confirmed that it is indeed looking at compacting its office space at the URA Centre on Maxwell Road to make space available to the private sector.

 

A spokeswoman for URA said: ‘We will be consolidating our office space to achieve greater space efficiency. We are still reviewing and are unable to say at this stage how much space can be freed up for rental.’

 

URA also said that it expects the consolidation to be completed by 2009/2010.

 

This latest exercise is a slight departure from earlier government office space crunch measures in that the agencies involved are not expected to move out of the CBD.

 

As such, URA will not be following the Singapore Land Authority (SLA) to Revenue House at Novena. Nor will it be following the Economic Development Board (EDB) to Fusionopolis at one-north in Buona Vista.

 

‘All the URA divisions will be staying at The URA Centre,’ added its spokeswoman.

 

But while SLA and EDB – currently located at Temasek Tower and Raffles City respectively – do not own their offices, URA does.

 

The 16-storey URA Centre, which was opened in 1999, was designed by Kenzo Tange Associates at a cost of $118.9 million.

 

And it could now prove to be a generator of considerable rental revenue.

 

Cushman and Wakefield managing director Donald Han says that rents at nearby Capital Tower and Temasek Tower are currently $16-$18 and $12-$13 psf per month respectively.

 

Prime office space is a luxury these days and Mr Han reckons that government bodies that occupy space in the CBD, may need to ‘justify’ their occupation of the space, even if they own it.

 

It is not known what the efficiency of office space at government-owned buildings such as URA Centre is but Mr Han says anything above 150 sq ft per person, ‘is a luxury’.

 

‘The industry standard in the private sector is between 80-130 sq ft per person,’ he explained, adding that cutting space usage by 50 sq ft per person and improving ‘operational efficiency’ could amount to quite a lot of new, leasable space, especially at today’s rates.

 

Colliers International director (research and advisory) Tay Huey Ying also believes that the MOF directive could be revenue driven rather than just a move to help ease the office space crunch.

 

As Ms Tay points out, the URA and other government bodies do pay rent even if they own their own buildings. But it is not known what rent they pay. ‘The rents could be tied to market rates but it could also depend on the accounting system,’ she added.

 

Ms Tay nevertheless lauds the move. ‘At this point in time, any freeing up of space will help the supply crunch,’ she said.

 

Interestingly, Mr Han believes that with the announcement of new growth areas in the Draft Master Plan 2008, even more government agencies could be moving out of the CDB, if only to help kick-start these areas.

 

‘To be a catalyst in these areas, it cannot be left to the private sector because the lack of amenities will mean land prices in initial land sales sites will be low and this could lead to price distortions,’ he explained.

 

Source: Business Times

Japan property firms eye rent hikes in Tokyo

Japan property firms eye rent hikes in Tokyo

 

TOKYO – JAPAN’S leading estate firms, including Mitsui Fudosan, have begun proposing big rent rises in central Tokyo, where office vacancy rates have been hovering near 20-year lows.

These rock-bottom vacancy rates have helped Mitsui Fudosan and rival Mitsubishi Estate weather tougher times for much of Japan’s property market, which has been hit by tighter credit and stricter apartment building codes.

 

Mitsui Fudosan, Japan’s largest real estate developer, said yesterday that it is in talks with tenants to raise office rents in central Tokyo by an average 10 to 15 per cent.

 

The country’s second-largest, Mitsubishi Estate, also said it is in talks with tenants to raise office rents in the Marunouchi area of central Tokyo by 15 to 20 per cent.

 

Another major developer, unlisted Mori Trust, said it is preparing to raise office rents in central Tokyo’s Minato district by an average of 20 per cent.

 

The office vacancy rate in Tokyo’s 23 wards stood at 2.1 per cent last month – the lowest since the burst of Japan’s asset-inflated bubble economy in 1990, according to Ikoma Data Service System, a research firm specialising in the market for office buildings.

 

Average rent in Tokyo’s five central wards last month was about 15,120 yen (S$198.1) per 3.3 sq m. That marks a 12 per cent increase from 13,530 yen in June of last year, according to the most recently available data from Ikoma.

 

‘Tokyo’s office market is extremely tight,’ said Ikoma researcher Mitsuhiro Asada.

 

‘With signs of an economic recovery, many companies started hiring more people, and that’s making them want to move to bigger offices,’ he said. He added that such conditions would likely last for a while, helping real estate firms’ businesses.

 

Mitsubishi Estate said it is seeking the rent increase given the tight office market situation in the Marunouchi area. It said its vacancy rate in that district was just 0.19 per cent as at the end of March, the lowest since it started disclosing the data in 2003.

 

Shares of Mitsui Fudosan tumbled 3.8 per cent to 2,440 yen and those of Mitsubishi Estate lost 2.2 per cent to 2,690 yen as of the midday break yesterday.

 

REUTERS

 

Source: Straits Times

Katong Mall on sale for up to $250m – amid controversy

Katong Mall on sale for up to $250m – amid controversy 

Public tender comes after a contentious collective sale approval last year

By Jessica Cheam 

 

ONE of the landmarks of the east, Katong Mall, was put up for sale yesterday at an indicative price of $220 million to $250 million – amid some controversy.

The 99-year leasehold property comprises strata-titled commercial units used as shops and other businesses.

 

But the site can be rebuilt into a mixed development comprising residential and commercial units, said its marketing agent Jones Lang LaSalle (JLL).

 

Its public tender comes after a contentious collective sale approval process in September last year.

 

About 35 minority owners claimed they were not consulted in the drawing up of the sale agreement, and that the sale process was conducted under the old rules and not the new, stricter ones that took effect in October.

 

They also complained of a low reserve price, and said some majority owners had a potential conflict of interest as they were property developers – Nustavino and Habitat Properties – that could bid for the property.

 

Whether the consent of owners representing 80 per cent of the share value required for the sale had been obtained was also called into question yesterday.

 

One minority owner, Mr Robert Ong, told The Straits Times that five owners had withdrawn their signatures before the new laws kicked in on Oct 4.

 

‘This means the signatures collected could have fallen below the 80 per cent threshold,’ he said.

 

When contacted, JLL’s local director for investments, Ms Stella Hoh, said that the firm had the 80 per cent level to proceed with the sale.

 

On the conflict of interest issue, she said that even if the sale committee members were developers by trade, they were legally allowed to bid as long as they declared their position.

 

They would not take part in the tender decision-making and voting process, she added.

 

‘We believe this site will attract a lot of parties despite the current market, given that there are few private land sites for sale in this area.’

 

The four-storey mall has a land area of 78,158 sq ft with a gross plot ratio of 3.6. This works out to a gross floor area of 281,369 sq ft – an indicative sale price of $782 per sq ft (psf) to $888 psf per plot ratio.

 

Developers have an extra option: JLL said it has also obtained outline planning permission for a mixed development with an approved plot ratio of three – a gross floor area of up to 234,474 sq ft. This is subject to the relevant authorities’ approval and payment of a development charge.

 

Located at the junction of East Coast Road and Joo Chiat Road, the project could yield about 490 commercial units of 400 sq ft each, or 100 residential homes and 185 commercial units of 1,200 sq ft and 400 sq ft, respectively.

 

Savills Singapore director (business development) Ku Swee Yong said the site was an attractive location, with an increasing population catchment with upcoming condominiums nearby.

 

‘But given the current market, it remains to be seen whether there will be takers.’

 

Meanwhile, all eyes will be on the results of the public tender, which closes at 3pm on June 25.

 

Source: Straits Times

Five bids for Choa Chu Kang tender

Five bids for Choa Chu Kang tender

 

A UNIT of property giant Far East Organization has put in the top bid for a condominium site at Choa Chu Kang Drive, about five minutes’ walk from Choa Chu Kang MRT Station.

Tian Hock Properties offered $116 million for the 204,514 sq ft plot, which works out to about $203 per sq ft per plot ratio (psf ppr).

 

The site drew a respectable five bids when its tender closed yesterday, possibly due to the perceived strength of the mass-market condo segment, experts said. Far East’s offer topped those of Sim Lian Land, Hong Leong Holdings, GuocoLand and Hiap Hoe.

 

But property consultants said the bid amounts remained low, reflecting a continuing caution and lacklustre demand in the overall property market.

 

Mr Li Hiaw Ho, executive director of CB Richard Ellis Research, estimated the site’s breakeven cost at about $600 psf, based on the top bid. The units could be sold for $650 psf in about a year, he added.

 

Homes at nearby condos such as Yew Tee Residences, Northvale and The Warren have fetched $450 to $650 psf recently, Mr Li said.

 

Far East‘s bid yesterday came in higher than the top bid submitted last month for a similar site at the junction of Choa Chu Kang Road and Woodlands Road.

 

That site, home to the Ten Mile Junction mall, drew a top bid of $61 million, or $162 psf ppr.

 

Source: Straits Times