Chip Eng Seng

Chip Eng Seng: A 99yr leasehold mixed commercial and residential development site at Yishun gets top bid $212m or $794.44 psf ppr from Chip Eng Seng. Site attracted 13 bids, with 2nd highest bid 8% lower. The site has a land area of 8,858.3 sqm and tenure of 99 years. It has an allowable gross plot ratio of 2.8 and a maximum permissible gross floor area of 24,803.24 sqm. The proposed development will comprise condominium units ranging from studio apartments to 4 bedroom apartments and 2 to 3 levels retail podium. Govt estimates that the site would yield a modest ~160 homes. All eyes in the mkt are now on next Tue's tender closing for a 99yr private condo site in Jurong for a clearer indication of developers' reading of the private housing mkt. Other second liner property stocks trading at prices comfortably below 50% of their RNAV, with the likes of Hiap Hoe, Heeton, Superbowl, and KSH. The counter trades at 6.4x P/E, 1x P/B, offers 5.9% yield.