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Punggol Watertown project

Panerex77

By Panerex77,
in Lite & EZ

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Sabbie

Sabbie

Clutched

at 700psf , EC at punggol is a rip off...

 

it takes 3-4 years to built it, plus 5 years MOP before you can sell to PR/sinkies, 10 years before you can sell to foreigners...

 

you can get a D10 unit at jervois jade for 700+psf!!

 

http://www.propertyguru.com.sg/listing/862...jade-apartments

 

haha, you are not comparing like for like, this is a big unit and 99 leasehold and it's 10 years older.....this is why I love all the comments here....whole lot of miscom.....

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Teoky

Teoky

Clutched

Yep. I've given up on new launches - high psf and damn blardy small. For the kinda psf developers are asking in ulu areas, u can get older FH properties in better locations. Plus, dun hv the con job planter boxes, ledges, huge a/c ledge and balcony. If it states 1400sf, u get 1400sf of usable area. For new launches, gotta discount at least 10-15% of what's advertised.

 

Agreed ! Units keep on getting smaller.

 

The high psf is due to the cost of land and labour, not much choice there.

 

I see alot of remarks on this thread that Watertown not worth it etc and it set me thinking.

 

The breakeven price for Watertown should be between 1050 - 1100 psf so if they sell at $1200 psf, they make $100 psf or about $100k for a 1000 sq feet unit.

 

Just for argument sake (not apple to apple comparison), let's compare it to Punggol Regalia which is also next to Punggol MRT.

 

Here's the prices for Punggol Regalia :

 

5-room units Indicative Price:

Size: 110sqm/1184sqf*

Indicative price Min: $342,000 (~$3109psm/$288psf)

Indicative price Max: $428,000 (~$3890psm/$361psf)

 

What is the cost of land ? Though HDB say that there is a cost for the land, no one really know how much they "paid" for the land. Assuming the cost of development is half that of condo (I estimate at $300 psf for Watertown, could be more), HDB incur a cost of $150 psf to develop Regalia.

 

Assuming the mid point of $324psf selling price for Regalia, the "profit" to HDB is $174psf ! Not too bad actually.

 

If we look at it from this angle, you can say that alot of the private property is more "worth" it than HDB !

 

But I still think that HDB is best buy !

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Teoky

Teoky

Clutched
(edited)

$752 for the land??? Are you sure it's so high? Thought the market for good sites is $500 to 600+ psf?

 

They paid 1.02 billion for the 322,910 sq ft site which has a GFA of 1,356,221 sqft.

 

If you divide the price they paid by the GFA, you will get $752 psf ppr.

 

If you factor the development cost of building Watertown to be $300 psf (i think should be higher, you need to build showroom, pay property agent commissions, do marketing, tv ads, print ads etc), the break even is $1052 psf !

 

So when I see post saying that it is overpriced at $1.2k psf, I wonder if they know the cost ? Do we expect developer to lose money ? In fact, I am surprised that some units are going for less than $1.1k psf.

 

Consider Treasure Trove which many say is more worth it. The cost for the land is $406 psf ppr and the average selling price is $920 psf. If we assume the development cost is $300 also, the break even is $706 psf.

 

Sky Habitat near Bishan MRT is estimated to sell at around $16xx psf and the cost of the land is $869 psf ppr.

 

Bartley Residences beside Bartley MRT estimated selling price is between $11xx to 12xx psf and cost of land is $620 psf ppr.

 

Is Watertown overpriced based on the cost ? I don't think so if you can get it below 1.1k psf. However, I heard some units hit 1.5k psf which is really high and might be hard to see capital appreciation at that level. If not for the ABSD, I think Watertown will do very well.

 

Is it worth it ? That's a different question as it depends on what the buyer is looking for.

Edited by Teoky
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Wyfitms

Wyfitms

Twincharged

They paid 1.02 billion for the 322,910 sq ft site which has a GFA of 1,356,221 sqft.

 

If you divide the price they paid by the GFA, you will get $752 psf ppr.

 

If you factor the development cost of building Watertown to be $300 psf (i think should be higher, you need to build showroom, pay property agent commissions, do marketing, tv ads, print ads etc), the break even is $1052 psf !

 

So when I see post saying that it is overpriced at $1.2k psf, I wonder if they know the cost ? Do we expect developer to lose money ? In fact, I am surprised that some units are going for less than $1.1k psf.

 

Consider Treasure Trove which many say is more worth it. The cost for the land is $406 psf ppr and the average selling price is $920 psf. If we assume the development cost is $300 also, the break even is $706 psf.

 

Sky Habitat near Bishan MRT is estimated to sell at around $16xx psf and the cost of the land is $869 psf ppr.

 

Bartley Residences beside Bartley MRT estimated selling price is between $11xx to 12xx psf and cost of land is $620 psf ppr.

 

Is Watertown overpriced based on the cost ? I don't think so if you can get it below 1.1k psf. However, I heard some units hit 1.5k psf which is really high and might be hard to see capital appreciation at that level. If not for the ABSD, I think Watertown will do very well.

 

Is it worth it ? That's a different question as it depends on what the buyer is looking for.

 

Real winnar is the Govt!! Revenue coming in left, right & center... should be enough to cover losses

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Teoky

Teoky

Clutched

Real winnar is the Govt!! Revenue coming in left, right & center... should be enough to cover losses

 

Of course ! We need to pay them big $$$ so that no corruption leh.

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Soya

Soya

Supersonic

The WT site comprises of commercial too so u can't simply divide the GFA and simply say the residential land cost is $752psf. I dun know what's the commercial quantum but after u factor that out, the residential land cost component shld be much below that. So, even at $1.1kpsf, they are making a decent profit.

 

The cost is high oso becoz of the FEO consortium outbidded the 2nd highest by a whopping 20%! They simply pass on the cost to the eager buyers.

 

 

 

 

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Mustank

Mustank

Hypersonic

The WT site comprises of commercial too so u can't simply divide the GFA and simply say the residential land cost is $752psf. I dun know what's the commercial quantum but after u factor that out, the residential land cost component shld be much below that. So, even at $1.1kpsf, they are making a decent profit.

 

The cost is high oso becoz of the FEO consortium outbidded the 2nd highest by a whopping 20%! They simply pass on the cost to the eager buyers.

 

woah! i never thought of it this way. this mcf is really a good place. i learn so much! [:/]:huh:

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Lala81

Lala81

Hypersonic

Canopy.....

 

I'm going to be one of your HDB BTO neighbours, likely moving in 2013 like u all hehe :D

 

But really quite sad, all the forested areas which i used to jog past are all being levelled for BTO

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Soya

Soya

Supersonic

woah! i never thought of it this way. this mcf is really a good place. i learn so much! [:/]:huh:

 

 

the tender price differences between:

1st to 2nd: 20%

2nd to 3rd: 8%

3rd to 4th: 2.8%

4th to 5th: 10%

 

it's clear from the tender results that the FEO consortium overpaid for the land. and yet, they still can make $$. so now u can see how overpriced it is.... [sweatdrop]

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Mustank

Mustank

Hypersonic

I'm going to be one of your HDB BTO neighbours, likely moving in 2013 like u all hehe :D

 

But really quite sad, all the forested areas which i used to jog past are all being levelled for BTO

 

did you manage to get those reservoir view one? my sister in law also go get one unit just oppsite canopy. but didnt manage to get any got view unit [:(]

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Mustank

Mustank

Hypersonic

the tender price differences between:

1st to 2nd: 20%

2nd to 3rd: 8%

3rd to 4th: 2.8%

4th to 5th: 10%

 

it's clear from the tender results that the FEO consortium overpaid for the land. and yet, they still can make $$. so now u can see how overpriced it is.... [sweatdrop]

 

woah!!!! the difference really big between the 1st and 2nd! :o but it definately prove no corruption [:p]

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Unidentified

Unidentified

1st Gear

woah!!!! the difference really big between the 1st and 2nd! :o but it definately prove no corruption [:p]

 

 

what corruption?

even if they go bankrupt,the pappies will also come in and be their savior.

u think any construction company got this type of privilege?

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Teoky

Teoky

Clutched
(edited)

The WT site comprises of commercial too so u can't simply divide the GFA and simply say the residential land cost is $752psf. I dun know what's the commercial quantum but after u factor that out, the residential land cost component shld be much below that. So, even at $1.1kpsf, they are making a decent profit.

 

The cost is high oso becoz of the FEO consortium outbidded the 2nd highest by a whopping 20%! They simply pass on the cost to the eager buyers.

 

You are correct, I don't know the commercial quantum also. But let's assume that for such mixed-use site, there is a certain percentage of the site set aside for commercial use (maybe 40%).

 

Let's use Bedok Residences as a comparison as it also has mall and MRT. Assuming that the commercial/residential ratio is the same for Bedok Residences and WaterTown. The cost came up to be $841 psf ppr and CapitaLand outbidded the 2nd highest bidder by a whopping 21%.

 

Again, assuming that development cost is $300 psf so break even for Bedok Residences is $1141 psf. Average selling price of Bedok Residences is $13xx psf.

 

BTW, there's something which not everyone know, but a part of the WaterTown site is mandated as public area (town centre). What I heard is that FEO has to develop that area but maintenance will be by government so WT residents won't be paying for the maintenance. Not sure if FEO had to pay for that public area but if they did, it means their cost is higher than $752 psf ppr.

 

With regards to passing the cost to buyers, I don't know of any business that doesn't do that.

Edited by Teoky
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Neoscan

Neoscan

Clutched

haha, you are not comparing like for like, this is a big unit and 99 leasehold and it's 10 years older.....this is why I love all the comments here....whole lot of miscom.....

 

bro....if the punggol EC big unit selling less than 700psf and is FH...i'll buy the penthouse

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Sabbie

Sabbie

Clutched

bro....if the punggol EC big unit selling less than 700psf and is FH...i'll buy the penthouse

 

are you sure you will choose a left 89 LH in disctrict 10 over a FH unit in Punggol at the same price? hmm....abit touch and go for me

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