PropNews - Ho Bee and Sentosa

Recently, Ho Bee won another tender for the purchase of another land parcel at Sentosa. The bad news is that this land parcel was bought at a much higher price compared to its previous sites. Analysts have indicated a selling price for units at this land parcel to stand at around S$1,200-S$1,300 psf. This comes down to around a 25% increase to the average selling price of its initial Berth by the Cove Condominium which was at around S$830psf. It will also be one of the most expensive condominiums sold in Sentosa to date.
So far, Ho Bee has a total of 5 projects on Sentosa, and they are:
1) The Berth by the Cove: Leasehold Condominium (94% sold)
2) Berthside: Leasehold Terrace Housing (100% sold)
3) Coral Island: Leasehold Bungalows
4) Paradise Island: Leasehold Bungalows
5) The Baywater Collection: latest plot to be purchased.
However, the good news is that Ho Bee recently announced that net profits soared by 130% to S$38m in FY05. Much of this has got to be its timing in the first buyer of land in Sentosa to develop the Berth by the Cove. With the prospects of Genting and Universal Studios being the favourites to win the Sentosa Integrated Resort bid, the land sales that follow including the Quayside collection will likely spur an increase in the prices of land in Sentosa, further boosting prospects for Ho Bee.