The M - Mixed Development

[daheigou999]

the M acquisition ppr was approx SGD 1,450 psf

given Midtown Modern acquisition ppr is around SGD 1540 psf, i'm guessing launch prices will be around SGD 2400-2600 psf ?

I wish you were right...

But Guocoland usually doesn’t price that sensitively (not as desperate as Wingtai) and they wouldn’t want to sabotage Midtown Bay. On the flip side, their product is usually worth the extra dollar

 

[sinequa88]

I wish you were right...

But Guocoland usually doesn’t price that sensitively (not as desperate as Wingtai) and they wouldn’t want to sabotage Midtown Bay. On the flip side, their product is usually worth the extra dollar

trying to make myself feel better like i've a chance... hahah.

but agreed they have to respect the midtown bay launch prices..

 

[NiShiZhu]

I wish you were right...

But Guocoland usually doesn’t price that sensitively (not as desperate as Wingtai) and they wouldn’t want to sabotage Midtown Bay. On the flip side, their product is usually worth the extra dollar

From experience, GuocoLand is not known to price their product as competitively as UOL.
Looks like may have to switch the focus to penrose hoping miracle may happen since cdl priced their whistler grand quite competitively during launch.

 

[sinequa88]

From experience, GuocoLand is not known to price their product as competitively as UOL.
Looks like may have to switch the focus to penrose hoping miracle may happen since cdl priced their whistler grand quite competitively during launch.

Ni, whats your estimate on MM launch price?

 

[NiShiZhu]

Ni, whats your estimate on MM launch price?

2500psf on average if based on 5% higher land bid price than the M.
But then it’s GuocoLand. Maybe slightly higher coz product quality for MM may be a tier higher than the M.

 

[daheigou999]

2500psf on average if based on 5% higher land bid price than the M.
But then it’s GuocoLand. Maybe slightly higher coz product quality for MM may be a tier higher than the M.

In a normal market, I would expect Guocoland to beef up their fitout and position MM as a luxury product priced closer to South Beach Residence.

A 2BR ranging ~$2.5m should sit nicely in the spectrum. Backsolving a larger unit (“family”) size of 850sqft, it should average out around 2.9k psf to be in line with Midtown Bay’s psf. Hence, they will not sabotage but instead offer a different product

I feel it is unlikely for MM to stoop down to M’s cheap offering in terms of price/quality. The last thing they want is to spoil their brand name

 

[Passerboy]

I feel it is unlikely for MM to stoop down to M’s cheap offering in terms of price/quality. The last thing they want is to spoil their brand name

Agreed w the above analysis.

Guocoland is famed for “luxe” development, highly likely they would go into product differentiation to woo buyers, and moreover the location is impeccable.

Estimate to sell from 26xxpsf.

 

[NiShiZhu]

In a normal market, I would expect Guocoland to beef up their fitout and position MM as a luxury product priced closer to South Beach Residence.

A 2BR ranging ~$2.5m should sit nicely in the spectrum. Backsolving a larger unit (“family”) size of 850sqft, it should average out around 2.9k psf to be in line with Midtown Bay’s psf. Hence, they will not sabotage but instead offer a different product

I feel it is unlikely for MM to stoop down to M’s cheap offering in terms of price/quality. The last thing they want is to spoil their brand name

I shared a different view.
Midtown Bay obviously was not well received when priced at 3kpsf.
If MM is going to price close to 3kpsf, it will only add on to more unsold units into their inventory.
In such challenging climate, if they are strategic, they should make MM a tier lower than MB and price in 2500psf range. They should learn the success story from the M.

 

[Passerboy]

I shared a different view.
Midtown Bay obviously was not well received when priced at 3kpsf.
If MM is going to price close to 3kpsf, it will only add on to more unsold units into their inventory.
In such climate, if they are strategic, they should make MM a tier lower than MB and price in 2500psf range. They should learn the success story from the M.

I think they would launch w product in between the M and Midtown Bay, and prices would meet halfway.

 

[NiShiZhu]

I think they would launch w product in between the M and Midtown Bay, and prices would meet halfway.

It’s certainly somewhere between the M and MB. However the question is in which spectrum? Closer to the M or closer to MB?
If I remember correctly, there’s no 1 bedder for MM? If that’s the case, Quantum will be the determining factor as well.

 

[Passerboy]

It’s certainly somewhere between the M and MB. However the question is in which spectrum? Closer to the M or closer to MB?
If I remember correctly, there’s no 1 bedder for MM. Quantum will be the determining factor as well.

that’s true..
but my guess is closer to MB spectrum, as Guocoland would need to protect its brand and would not wish to jeopardize the sale of MM either.

 

[daheigou999]

I shared a different view.
Midtown Bay obviously was not well received when priced at 3kpsf.
If MM is going to price close to 3kpsf, it will only add on to more unsold units into their inventory.
In such challenging climate, if they are strategic, they should make MM a tier lower than MB and price in 2500psf range. They should learn the success story from the M.

Well, I certainly hope you’re right since I’ll plunge in at 2.5k psf average

Only time can tell I guess. I’ve already been massively disappointed by Kopar so hopefully this will end up well

 

[daheigou999]

that’s true..
but my guess is closer to MB spectrum, as Guocoland would need to protect its brand and would not wish to jeopardize the sale of MM either.

Agree with you, but hope we’re wrong

 

[sinequa88]

Well, I certainly hope you’re right since I’ll plunge in at 2.5k psf average

Only time can tell I guess. I’ve already been massively disappointed by Kopar so hopefully this will end up well

yo bro, think that makes 2!

2.5k psf i'll take the plunge too. haha

1br or 2br?

 

[NiShiZhu]

Must see how strong GuocoLand balance sheet.
Wingtai obviously wants to price to sell the M since the gardens wasn’t yielding good sales. That said, gardens was 44% sold as of now.

 

[daheigou999]

yo bro, think that makes 2!

2.5k psf i'll take the plunge too. haha

1br or 2br?

2BR own stay!

 

[NiShiZhu]

2BR own stay!

It’s a nice district I must say, better than kopar.

 

[Passerboy]

yo bro, think that makes 2!

2.5k psf i'll take the plunge too. haha

1br or 2br?

I note that there are transactions at MB ard 2.6kpsf for its 2bd2bath 743sqf, thus starting from 2.5kpsf could be a possibility. Psf terms range from 2.6-3.xkpsf for the smaller high floor one bedroom units. Quantum starts ard 1.3m.

But u need to be prepared for higher quantum too and 2.5kpsf could be the less desirable units- assuming 2bed1bath 600sqf- $1.5m.

 

[sinequa88]

I note that there are transactions at MB ard 2.6kpsf for its 2bd2bath 743sqf, thus starting from 2.5kpsf could be a possibility. Psf terms range from 2.6-3.xkpsf for the smaller high floor one bedroom units. Quantum starts ard 1.3m.

But u need to be prepared for higher quantum too and 2.5kpsf could be the less desirable units- assuming 2bed1bath 600sqf- $1.5m.

also noted from caveats lodged for MB that there are not much txns in Feb and March 2020

started off with 6 for Jan'20 and then 2 each for Feb & Mar'20

wonder how things will fare for the rest of the year.. now with MM also being launched... the location for both are really quite near..

 

[daheigou999]

I note that there are transactions at MB ard 2.6kpsf for its 2bd2bath 743sqf, thus starting from 2.5kpsf could be a possibility. Psf terms range from 2.6-3.xkpsf for the smaller high floor one bedroom units. Quantum starts ard 1.3m.

But u need to be prepared for higher quantum too and 2.5kpsf could be the less desirable units- assuming 2bed1bath 600sqf- $1.5m.

There are 1BRs in MM? I thought the CEO said MM will be differentiated with larger sizes more suited for families, to differentiate from MB?

Lower psf, larger size will still make it expensive