Bid 2 years ago: $61 million Top bid now: $164 million

http://s990.photobucket.com/albums/af26/0xymoronic/?action=view&current=tenmilejunction.jpg

IN A striking sign of how the property sector has rebounded, a site that failed to sell two years ago when it attracted an offer of just $61 million has now received a bid of $164 million in a new tender.

Eight developers placed bids for the suburban plot that can accommodate residential and commercial development.

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The top offers for the site at the junction of Choa Chu Kang and Woodlands roads were all in a fairly tight range, with Far East Organization’s Dollar Land Singapore on top with a bid that beat market expectations.

It offered nearly $164 million, or $436.65 per sq ft (psf) of gross floor area, about 10 per cent more than the $148.28 million or $394.80 psf offered by second-placed Chip Eng Seng’s CEL Development.

Sim Lian Land was next with $138.89 million or $369.79 psf.

Other bidders included a joint venture between Frasers Centrepoint and NTUC FairPrice Cooperative, and Soilbuild Group Holdings, which came in last with a bid of just $71.23 million.

CBRE Research had expected bids to range from $135 million to $150 million.

The $164 million bid could reflect a price of $50 million to $70 million for the commercial podium, with the developer possibly selling the apartments for around $700 psf to $800 psf, consultants said.

In April 2008, the site attracted just two bids of $61 million and $45.68 million when its sale tender closed. The bids were rejected as being too low.

The site, to be co-located with the Ten Mile Junction LRT station on the third storey of the podium block, will be near the future Bukit Panjang MRT station, part of the future Downtown Line 2 and due for completion by 2015.

Property consultants said the results showed that demand for land was still fairly strong, particularly coming after the Government’s recent measures to pre-empt a property bubble.

The Government has imposed a duty on sellers who offload property within a year of purchase, and lowered the maximum loan-to-value amount buyers can borrow from 90 per cent to 80 per cent.

Knight Frank chairman Tan Tiong Cheng said: ‘The top three bidders are the more experienced players familiar with the suburban market.

‘Their bids suggest they would think the recent measures would not affect prices in the longer term.’

With fewer sources of private land, developers are chasing government sites as they need to replenish land banks, said Colliers International executive director (investment sales) Ho Eng Joo.

He said the cooling measures will affect the sales market more than developers’ demand for land.

In the short term, some potential buyers will want to wait and see if prices will fall, experts said.

But those who are already planning to buy will likely go ahead.

Ms Christina Sim, Cushman and Wakefield’s director of investment and capital markets, said the one-year timeline for the seller’s duty is relatively short and unlikely to affect the market much.

Still, an analyst who declined to be named said: ‘The latest announcement begs the question – what conditions would qualify as a stable market? If transactions are above 1,000 units a month, that’s probably a warning sign.’

Source : Straits Times – 24 Feb 2010
http://sharonanngoh.com/2010/02/24/bid-2-years-ago-61-million-top-bid-now-164-million/#more-6884

I don't quite get it from the article. Will the existing building be demolished, or will something be built next to it?

URA: The site is earmarked for an integrated commercial and residential development, that is co-located with the Ten Mile Junction LRT station. A 3-storey podium block comprising commercial space at 1st and 2nd storey and the Ten Mile Junction LRT station at 3rd storey is already built and in operation. The sale will only include the existing commercial development and the future residential development to be built above the podium.

The loading provision for the future residential development is already provided for within the completed development.

If the Ten Mile Junction is going to be torn down then what is going to happen to the Bt Panjang LRT depot??

It's now called Junction 10

Next stop: Junction 10

http://imcms2.mediacorp.sg/cmsfileserver/showimageCC.aspx?272&450&f=2074&img=2074_298586.jpg&h=272&w=450

SINGAPORE - The intersection of Choa Chu Kang and Woodlands Road looks set for a facelift as Far East Organization unveils a new mixed-development project that includes a shopping complex and a residential tower at the Ten Mile Junction site.

Far East unveiled the commercial component of the development yesterday, eight months after the company won the tender for the site. The developer is investing $28 million in Junction 10, a new mall, which will take up two storeys on the site.

Junction 10 will adopt a "new rail lifestyle" concept that is set for completion by the end of next year. The mall will sport a trendy decor theme that uses rail elements like timber sleepers, runners and rivets, the firm said.

"We are catering to community around the vicinity there. There are four major areas we are looking at, and together we are looking at maybe almost 400,000 residents around the area," said Mr Kelvin Ling, chief operating officer of Far East's Retail Business Group.

These areas include the Bukit Panjang, Upper Bukit Timah, Bukit Batok and Choa Chu Kang area.

Far East hopes to attract the middle income group between the age of 25 and 45 through the mall's shopping and dining options.

About 30 per cent of the space will be taken up by Giant hypermarket, while 40 to 60 per cent will be for F&B outlets and the rest for other lifestyle enrichment products and services.

"It's a viable concept for a mixed development within the area," said DMG analyst Brandon Lee.

The area has a high catchment of both HDB and private property residents, and the mall could generate good traffic, he said.

Junction 10 has 121,000 sq ft in gross floor area, with a net lettable area of 92,000 sq ft.

The current Ten Mile Junction has a net lettable area of about 81,000 sq ft.

Construction cost for the entire development including the commercial and residential component is estimated at about $100 million. It will consist of 16-storeys in total.

The residential portion of the project will have 338 chic Soho apartments located above the Junction 10. It will occupy levels five to 16 and will be launched in the first quarter of next year.

Far East Organization's Dollar Land Singapore unit won the Ten Mile Junction site in February with a bid of $164 million.

Looks nice!! Pretty small though...............................

from the description of the project and the tender price, it seems that the SOHO will not come cheap esp knowing far east.....possible to go for $1000psf onwards. Like that singapore property price how to come down with bukit panjang going at that rate ?

yeah, it's small. The area is also known as ten mile as it is 10 miles from downtown, upper bukit timah is also known as 7 mile (direct translation from Mandarin). But now it's name has changed to a meaningless name junction 10 just like junction 8.

yeah, it's small. The area is also known as ten mile as it is 10 miles from downtown, upper bukit timah is also known as 7 mile (direct translation from Mandarin). But now it's name has changed to a meaningless name junction 10 just like junction 8.

I dont like both names accually. Ten Mile sounds really old and Junction 10 sounds like they are trying to copy Junction 8.

I dont like both names accually. Ten Mile sounds really old and Junction 10 sounds like they are trying to copy Junction 8.

I agree with Junction 10, it sounds rather a copycat but 10 mile keeps the history intact to the place... It is very synonyme with everyone that had lived or known the area..

Wow, they can redevelop this area without integrating it into the Bukit Panjang MRT Station. Excellent planning. [/sarcasm]

I think renaming the mall would contribute to its refurbishment and abolish the old identity of an empty mall.

It's on / near Upper Bukit Timah Road 10th milestone

I think renaming the mall would contribute to its refurbishment and abolish the old identity of an empty mall.

That true!! By using a new name people will know that the mall is new not the old tired looking Ten Mile.

Yawnz. Far East? What have they done to inspire confidence?

Does Orchard Central, The Central, Square2 sound successful to you?

Orchard Central: went there 3 weeks ago, 313 was packed! But Orchard Central was even more dead than when it first open.
The Central: Trying very hard to attract people with various activities, is quite dead except for the restaurants.
Square2: Many shops changed hands several times within the 4 years since it open. Even the NTUC feels empty compared to Cold Storage in Novena Square.

Some issues... Square 2 and Central: Why do they have to make people go through a maze from the MRT exit? They like to pack the basement and leave no space for a clear circulation to invite people to the levels above.

Orchard Central: The atrium is so tiny, I was not even sure what kind of shops are on each floor. Ever tried a mall that pisses you off? You pick and choose a floor which sells nothing that you want and then you have to backtrack your way back to the escalators, passing by the same shops with the shop assistants staring at you wondering whether you have lost your way or you are a homeless guy.

Square 2: Nice big atrium but why protrude the shops into the atrium? The corridors become narrow and dingy, the korean restaurant is on both sides of the corridor, making you feel like you are "passing through" the restaurant. NTUC is basically in the wrong place.

Central: It's basically 2 separate malls connected by dingy corridors. One feels like a giant food court, the other has a lot of shops but you have no idea what kind of shops are there at the back.

Orchard Central: went there 3 weeks ago, 313 was packed! But Orchard Central was even more dead than when it first open.
The Central: Trying very hard to attract people with various activities, is quite dead except for the restaurants.
Square2: Many shops changed hands several times within the 4 years since it open. Even the NTUC feels empty compared to Cold Storage in Novena Square.

Some issues... Square 2 and Central: Why do they have to make people go through a maze from the MRT exit? They like to pack the basement and leave no space for a clear circulation to invite people to the levels above.

Orchard Central: The atrium is so tiny, I was not even sure what kind of shops are on each floor. Ever tried a mall that pisses you off? You pick and choose a floor which sells nothing that you want and then you have to backtrack your way back to the escalators, passing by the same shops with the shop assistants staring at you wondering whether you have lost your way or you are a homeless guy.

Square 2: Nice big atrium but why protrude the shops into the atrium? The corridors become narrow and dingy, the korean restaurant is on both sides of the corridor, making you feel like you are "passing through" the restaurant. NTUC is basically in the wrong place.

Central: It's basically 2 separate malls connected by dingy corridors. One feels like a giant food court, the other has a lot of shops but you have no idea what kind of shops are there at the back.

we r so used to the standard capital malls oredi....so anything different will be hard to adapt and swallow....FE trying hard to be different But failed....novena sq2 failed to draw in big crowd but its gd for ppl like me..(plenty of car lots):lol:

capitamalls r very practical BUT getting boring liao....foodcourts also becoming so so commercialised and the 'expected' taste is there oredi:lol:

we r so used to the standard capital malls oredi....so anything different will be hard to adapt and swallow....FE trying hard to be different But failed....novena sq2 failed to draw in big crowd but its gd for ppl like me..(plenty of car lots):lol:

capitamalls r very practical BUT getting boring liao....foodcourts also becoming so so commercialised and the 'expected' taste is there oredi:lol:
A mall can be different and creative but ultimately, it needs to be user-friendly, not trying to get people to adapt to the mall. I look at Far East's recent malls, and I always wonder to myself "what the h*ll were they thinking?"

If a developer wants a complicating, controversial design, fine. But make sure the shop mix is worth people trying to adapt to. I think Ion is complicating but thankfully, it has the brains and brawns to pull it off.

Orchard Central: went there 3 weeks ago, 313 was packed! But Orchard Central was even more dead than when it first open.
The Central: Trying very hard to attract people with various activities, is quite dead except for the restaurants.
Square2: Many shops changed hands several times within the 4 years since it open. Even the NTUC feels empty compared to Cold Storage in Novena Square.

Some issues... Square 2 and Central: Why do they have to make people go through a maze from the MRT exit? They like to pack the basement and leave no space for a clear circulation to invite people to the levels above.

Orchard Central: The atrium is so tiny, I was not even sure what kind of shops are on each floor. Ever tried a mall that pisses you off? You pick and choose a floor which sells nothing that you want and then you have to backtrack your way back to the escalators, passing by the same shops with the shop assistants staring at you wondering whether you have lost your way or you are a homeless guy.

Square 2: Nice big atrium but why protrude the shops into the atrium? The corridors become narrow and dingy, the korean restaurant is on both sides of the corridor, making you feel like you are "passing through" the restaurant. NTUC is basically in the wrong place.

Central: It's basically 2 separate malls connected by dingy corridors. One feels like a giant food court, the other has a lot of shops but you have no idea what kind of shops are there at the back.


Orchard Central's design is indeed confusing. But I think they're trying to be unique. Rather than having a "normal" mall with a central atrium (like 313 or AMK Hub. The latter has very poor design btw). The lifts of Orchard Central are particularly confusing.

Well, just removing the concept of an atrium does not mean that a mall becomes different immediately. Understanding the dynamics of retail space is more important. The atrium works not because it's just an atrium, but of the visual connection it provides. Of course this does not mean that you have to provide an atrium all the time, neither does it mean that atriums of any size and proportion works all the time. In fact one does not even need to look further than all the works by Jon Jerde to see that there are a lot of malls that can be unique and works at the same time.

the whole mistake of far east is that they bring in very boring shops that are present everywhere, plus they do not know what customers want. let me quote 313@somerset. i remembered 313@somerset somehow asked for input of what shops we want, and they brought in the shops people like, e.g. uniqlo, marche, making it a popular shopping centre. whereas for far east malls, their shops are so so so normal and boring. like orchard central. spectacle hut, some small stores, etc etc. plus their confusing laying, no wonder no one goes there. just open a 3-storey H&M + 5 storey Harrods and 3-storey hamleys + unique food outlets on the top few floors. I guarantee the crowd will be much more than what it is now.

That's partly true, although I must say that Orchard Central does offer some unique shops. But I guess the problem is that there is no clear large anchor. The Central has an anchor, but the rest of the shops are those you find in suburban malls.

What Orchard should have done is to do away with the double-loaded corridors and have large anchor stores occupy the wing with the lifts. Somewhat like a japanese department store concept. And free up a bit more circulation+visual space on the other wing to improve visibility of the shops.

Construction update, mall component almost complete, work starting on the columns for the residential component.

http://i41.tinypic.com/2nsck2g.jpg

^^ Thanks for the updates. It is quite the challenge to do the piling.