The West Coast Vale 99-year leasehold plot was launched on Dec 7, 2016 attracted the top bid of $292 million by China Construction Development in a hard-fought, nine-way battle for a residential land parcel in West Coast Vale.
Mr Desmond Sim, head of CBRE Research for Singapore and South-east Asia, said: "The plot is the last site to be sold on the Government Land Sales confirmed list for 2016 and the profiles of the bid parties reflect interest from some relatively newer developers and small-cap players who find the quantum affordable and easy to manage. This will negate the risks for developers making their first foray into the residential market".
Mr Sim said the site is in an enclave of private developments, an established area close to the park connector network along Sungei Pandan. "It requires the use of prefabricated materials which will help to keep a lid on construction costs."
Mr Desmond Sim, head of CBRE Research for Singapore and South-east Asia, said: "The plot is the last site to be sold on the Government Land Sales confirmed list for 2016 and the profiles of the bid parties reflect interest from some relatively newer developers and small-cap players who find the quantum affordable and easy to manage. This will negate the risks for developers making their first foray into the residential market".
Mr Sim said the site is in an enclave of private developments, an established area close to the park connector network along Sungei Pandan. "It requires the use of prefabricated materials which will help to keep a lid on construction costs."
The West Coast Vale 99-year leasehold plot was launched on Dec 7, 2016
Close behind, in second spot, MCC Land tendered $289.9 million, or about $587.3 psf ppr, for the parcel with a site area of about 176,294 sq ft - close to the top end of the expected $450 psf ppr to $600 psf ppr range.
The bid of $592 per sq ft per plot ratio (psf ppr) was towards the upper end of expectations, said JLL national director of research and consultancy Ong Teck Hui, who also felt that it reflects optimism that the residential market will continue to improve.
Mr Ong said the top bid was 7.4 per cent above the $551 psf ppr paid for the adjacent Parc Riviera site as it is slightly superior, being farther from the Ayer Rajah Expressway. The West Coast Vale site is also somewhat near the Jurong Lake District and malls like Jem.
Private home sales in 2016 grew nearly 16 per cent over the previous year and is expected to improve further in 2017, while price declines have been moderating.
Mr Ong said the top bid was 7.4 per cent above the $551 psf ppr paid for the adjacent Parc Riviera site as it is slightly superior, being farther from the Ayer Rajah Expressway. The West Coast Vale site is also somewhat near the Jurong Lake District and malls like Jem.
Private home sales in 2016 grew nearly 16 per cent over the previous year and is expected to improve further in 2017, while price declines have been moderating.
Parc Riviera is the latest residential condo by EL Development along West Coast Vale.
A version of this article appeared in the print edition of The Straits Times on February 10, 2017, with the headline 'West Coast Vale site draws top bid of $292m'.
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