On the basis of improved sentiments and a lack of other development sites, West Coast Vale is expected to receive good response from the developers. Under the government land sales (GLS) program, West Coast Vale is the recently announced residential site. This is according to some property consultants.
On the other hand, some real estate experts believe that the slow take-up for Parc Riviera condominium project may serve as a dampener. Parc Riviera condominium was launched in December, 2016 and was developed by EL Development.
The Urban Redevelopment Authority (URA) released the West Coast Vale recently. The 1.64-ha site was released under the GLS program’s Confirmed List for the second-half of 2016. This project is expected to yield 520 residential units maximum. The Confirmed List sites are launched on the set schedule whether there is demand or no demand. The experts believe that the project could receive 5-10 bidders with the top bid being S$529-S$600 per square feet per plot ratio (psf ppr).
Ong Teck Hui, the JLL national director for research and consultancy, is one of the experts who estimated that the highest bid is will be between S$550 and S$590 psf ppr. The estimated bid amount is little higher than S$551 psf ppr, which was paid by EL Development for the Parc Riviera parcel in August, 2016. The bid amount is higher because of better location and positivity in the current market.
“The buyers will love the ambience of private residential,” says Ong Teck Hui. “Because the frontage to exposed to Sungei Pandan and the park connector.” he said. “Eateries and shopping outlets are in a reasonable distance, however, MRT stations are little far,” he added.
R’ST Research director Ong Kah Seng said that he is expecting better bids for West Coast Vale, at least equivalent to the bids for Parc Riveria, if not higher. Expectation of higher bids, according to Ong Kah Seng, is because of growing perception of faster recovery in private home prices and buyers’ interest among the in developers taking higher risk.
Contrarily, there are experts who have negative views. They feel that the site location is not attractive because it is not within the walking distance from MRT station, retail shops and restaurants.
“Since there is little interest for the nearby Parc Riviera condo project at the moment, the site in question cannot attract developers,” said Nicholas, executive director Mak SLP International. “Interestingly, some developers taking advantage of the little interest might offer low bids.”
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Christine Li, the research director of Cushman & Wakefield has estimated even lower winning bid of S$450 to S$500 psf ppr for West Coast Vale residential site, which is far lower than the winning bid for the Parc Riviera. Christine Li says that the location is very far from MRT stations, therefore, to generate good market response, the project has be priced S$1,000 to S$1,100 psf at mass-market entry levels.
Parc Riviera and The Trilinq developed by IOI Properties are also giving competition. The Trilinq has 755 unites and 288 units are not sold yet. According to Christine Li, in order to secure the West Coast Vale, EL Development is likely to place higher bid.
