Mixed views over West Coast Vale residential site.
The newly released residential site at West Coast Vale under the government land sales (GLS) programme may see warm interest from developers on the back of improved sentiment and a lack of available development sites, some property consultants say.
Released on Wednesday by the Urban Redevelopment Authority (URA) under the Confirmed List of the second-half 2016 GLS programme, the 1.64-ha site could potentially yield up to 520 residential units. Confirmed List sites are launched according to schedule, regardless of demand.
Most consultants are expecting five to 10 bids with the top bid being in the region of S$529 to S$600 per square foot per plot ratio (psf ppr).
Unit buyers will like the private residential ambience, the site's frontage to Sungei Pandan and the park connector. Amenities such as eating and shopping are within a reasonable distance but MRT stations are quite a distance away.
But there are others who felt that the site is not that enticing since it is not located within walking distance to the nearest MRT station, retail shops and amenities. Some developers may take advantage of the expected weak interest in this site to submit low opportunistic bids.
This site that is up for tender is quite a distance away from the nearest MRT stations and that the project needs to be priced attractively at mass-market entry levels of S$1,000 to S$1,100 psf in order to garner good market response.
There is also competition from Parc Riviera, as well as IOI Properties' The Trilinq, which has 288 out of 755 units currently unsold. Still, there is a possibility that EL Development may consider placing a slightly more aggressive bid to secure the West Coast Vale site in order to maintain pricing power in the area.
Adapted from: The Business Times, 8 December 2016