Robert carrot head - HDB build flats at $140K, sell to you at over $300k

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The Business Times
Published November 30, 2011

Wee Hur wins $159.3m HDB job in Sengkang
By UMA SHANKARI

WEE Hur Holdings has been awarded a $159.3 million public housing building contract from the Housing & Development Board (HDB).

The group's construction arm Wee Hur Construction will build eight residential blocks, a basement car park and communal facilities such as pavilions, playgrounds, fitness stations and multi-purpose courts at Sengkang Neighbourhood 4.

The entire development will form a precinct named Fernvale Riverbow which will comprise 1,154 homes, the group announced yesterday.

Other works within the contract include the construction of sub-stations and service roads, and external landscaping and minor sewers.

Wee Hur executive chairman Goh Yeow Lian said that the group is pleased to secure its third HDB project within the current financial year, following projects at Jurong West Neighbourhood 2 in January and the Vista Spring @ Yishun in June.

'It is a great honour to play a major part in HDB's effort to build more quality homes to meet the housing demand of our nation,' Mr Goh said. 'With HDB ramping up flat supply, construction companies such as Wee Hur will have more opportunities to tender for public housing building projects.'

As at Sept 30, 2011, the group's construction business had around $363.7 million worth of contracts with completion dates ranging from FY2011 to FY2014.

This newly acquired contract will further strengthen the group's order book as it closes the financial year, Wee Hur said.

The Sengkang project will commence on Dec 19, 2011, and is expected to be completed by August 2014, contributing to the group's revenue mainly in the financial years from 2012 to 2014.

Wee Hur shares lost half a cent to close at 26.5 cents yesterday.

 

[Cestbon]

Supply and demand. Gov control the supply. When MBT as Minister built less than 20k unit over 10 year as minister.

 

[Cruxx]

What is a "government" for?

 

[scbccb]

All 20k units built around Jurong West area?

Supply and demand. Gov control the supply. When MBT as Minister built less than 20k unit over 10 year as minister.

 

[Cestbon]

Whole Singapore only built 20k or completed when MBT as minister. Do calculation only 2k unit on average per year.

 

[Unrepented]

Can TS please share with us how you conclude the building cost of $140 for a piegon hole

 

[zhihau]

Can TS please share with us how you conclude the building cost of $140 for a piegon hole

TS wrote $140K, probably divided $159.3M by 1154 units
should be approximately $138000.00 (nearest thousand) :p:p:p

 

[Unrepented]

Contractor must be a charity/non-profit organisation:(

TS wrote $140K, probably divided $159.3M by 1154 units
should be approximately $138000.00 (nearest thousand) :p:p:p

 

[Lestat]

Contractor must be a charity/non-profit organisation:(

I almost chocked on my food when I read this. So funny!

 

[Fook Seng]

One way for flat owners to own flats at affordable rates is for flats to be sold without selling the land. Instead a monthly rent for the land should be charged. As land cost is the most major component, flat owners get to own flat at a very low cost, say 20% above construction plus some HDB administrative fees. The Govt also will not be losing money on the sale of its land assets.

 

[streetsmart73]

What is a "government" for?

hi there


1. bro, gdp, monies & of course, multi-dollar salary!

 

[Fook Seng]

One way for flat owners to own flats at affordable rates is for flats to be sold without selling the land. Instead a monthly rent for the land should be charged. As land cost is the most major component, flat owners get to own flat at a very low cost, say 20% above construction plus some HDB administrative fees. The Govt also will not be losing money on the sale of its land assets.

When I mentioned construction costs, I meant costs to the building contractor. In a tender, the margin, assuming it is 20%, has already been factored in. So in case of the HDB project in this example, it shouldn't be very much more than the average $140k per unit achieved in the tender, say 10% more for design and marketing.