Tag Archives: Stars of Kovan

Stars Kovan Launch

Stars Kovan Launch . Land Sale & Pricing Analysis

ASSET Legend Limited won the Urban Redevelopment Authority (URA) land sale for the Stars of Kovan site at a tender bid of S$276.8 million, or S$848.84 per square foot per plot ratio (psf ppr).

URA announced the results of the land tender on 28 November 2014.

This is a 99-year leasehold mixed-development site at the corner of Tampines and Upper Serangoon Roads, about 350m from Kovan MRT station.

The land zoned for residential on top of 1st storey commercial was launched for tender on 25 September 2014. This tender closed on 27 November 2014.

In November 2014, the BCA (Building and Construction Authority) announced that projects built on government land sale sites going forwards, would have to meet higher building design & constructability standards, as well as a specified level of prefabrication.

The Stars Kovan launch is the 1st government land sale site required to comply with these new buildability and productivity regulations. The site’s tender closing date was extended from November 13 to November 27 to give bidders more time to factor in the new requirements.

ASSET Legend is a subsidiary of Li Ka-shing’s Cheung Kong Holdings. Cheung Kong Holdings has an impressive portfolio of developments internationally, including luxury projects in Singapore such as Marina Bay Suites, Costa del Sol, and Thomson Grand.

Thomson Grand by Cheung Kong . Developer for the Stars Kovan LaunchThomson Grand by Cheung Kong Holdings . Developer for the Stars Kovan Launch

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Stars Kovan Launch . Pricing Analysis

Asset Legend’s winning price of S$848.84 psf ppr was higher than the market expectations of S$670-750 psf ppr. It is considered “aggressive” by analysts, who expected more conservative bids due to the new prefabrication requirements, as that is likely to lead to slightly higher construction costs.

The 2nd highest bid of S$240 million (S$736.06 psf ppr) was put up by Sustained Land’s SL Capital Ventures Pte Ltd.

A Joint Venture comprising City Developments unit Verwood Holdings, Hong Leong Group’s Intrepid Investments, and TID Residential put in the 3rd highest bid of S$234.6 million (S$719.50 psf ppr).

The tender drew a total of 11 bids, within market expectations. The lowest bid of S$172.7 million (S$529.66 psf ppr) was put in by Koh Brothers’ KBD Ventures.

Based on analysts’ computations, the top bid translates to a break even cost of over S$1,300 for the residential units. The site is primarily residential, with its ground floor zoned for commercial space. Conveniently located near Kovan MRT station, it is expected to yield about 340 residential apartments.

“As (the new requirements are) a new move, the economies of scale have yet to be tested and the breakeven price for this project could be higher as it is the first adopter,” said Eugene Lim, the KEO (Key Executive Officer) for ERA Realty Network.

“Asset Legend could be bullish about the site’s prospects due to its proximity to the Kovan MRT station and its main road frontage, which works well for the first-floor commercial units.”

RST’s Research director Ong Kah Seng said that optimistic bids are common with foreign developers, who might be willing to take a lower profit margin as they see the benefits of developing a plum site that could yield a product with greater investment potential.

See this link for the news report for the tender results (opens in new window).

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Kovan Stars Condo | The Neighbourhood

Kovan Stars Condo . About the Location

This mixed development is located at the corner of Upper Serangoon Road and Tampines Road. But Kovan Stars condo itself is expected to be somewhat buffered from road noise by the fact that it sits atop the shopping podium, with the E-Deck where the pool, landscaping & other facilities are, on the roof of the podium.

Even its lowest residential units will be somewhat elevated. But do be aware that some degree of road noise is inevitable.

Amenities around Kovan Stars CondoAmenities around Kovan Stars Condo . Click to Enlarge

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Kovan Stars Condo · Transport Options

Kovan Stars is one of the nearest condominiums to Kovan MRT station, about 2 to 3 minutes walk from it.

Quite a variety of buses ply along Upper Serangoon Road, going to places like Changi Airport, Bishan, Sengkang & Punggol. But of course the most convenient way to get to town, is via the MRT. That also brings you conveniently to increasingly more and more parts of Singapore.

Interestingly, Kovan Express Bus Terminal is actually sited right next to Heartland Mall beside Kovan MRT, and it has buses that bring you to KL, Malacca, and Genting. Not bad for a quick and easy holiday.

Drivers have it pretty good too. Kovan Stars condo sits at the center of 4 major expressways: the CTE to its west, the PIE to its south, the KPE at its east, and the TPE to its north. All within easy reach off-peak, but of course somewhat longer at peak hours.

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Kovan Stars Condo · Amenities

Stars of Kovan will reap the benefits of being in a mature estate. The shophouses nearby, besides being a foodie’s delight, also house an eclectic array of shops.

Heartland Mall, and Kovan Hougang Market and Food Centre, 3 minutes walk away, are the go-to places for daily necessities like food, groceries, household items.

And not forgetting what is today a necessity to parents with school-going children: tuition schools. These occupy the whole of the 4th floor of Heartland Mall, so you can save the trouble of ferrying your kids to their tuition classes.

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Kovan Stars Condo · Rental Potential

Other condominiums around the area include Kovan Residences (April 2009) opposite the road from Stars of Kovan, Kovan Melody further up (September 2004), Tembusu (August 2013) about 550m from Kovan MRT station, and Trilive (June 2014) around 700m from the station.

The end 2015 rental rate for Kovan Residences & Kovan Melody is between $3 to $3.60 PSF (see the URA website). Tembusu and Trilive are not completed yet.

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