West Coast Vale site triggered for sale from reserve list

Observers expect up to 12 bidders with top offers ranging from $660 to $800 psf ppr

A crowded field of 12 bidders could be lining up for a tilt at a plot of residential land in West Coast Vale that was released by the Urban Redevelopment Authority (URA) yesterday.

The site was on the reserve list of the Government Land Sales (GLS) programme for this half of the year.

It was triggered for sale when a developer committed to a bid of at least $379.988 million, or $643.53 per sq ft per plot ratio (psf ppr).

The 99-year leasehold plot has a site area of 19,591.5 sq m and a permissible gross floor area of 54,857 sq m. It can be developed into about 730 apartments. Consultants expect a top offer ranging from $660 to $800 psf ppr.

Mr Ong Teck Hui, national director of research and consultancy at JLL, expects up to 12 bidders.

"The site is in an established residential area in the West Coast area near condominiums and landed properties," he noted.

"It is almost adjacent to two other URA residential parcels that were sold earlier, Parc Riviera, which is currently being marketed, and Twin Vew, which is awaiting its sales launch."

Parc Riviera was launched in November last year and had sold 685 of its 752 units last month at a median price of about $1,240 psf.

The Twin Vew site, which was sold in February, fetched a land price of $592 psf ppr with nine bidders participating.

"Based on purchasers' addresses for Parc Riviera, most buyers are probably HDB upgraders and investors as the price point is close to entry-level pricing for private condominiums," Mr Ong said.

"Pricing affordability would be a key factor for this (West Coast Vale) site as it is a bit farther from transport nodes and amenities.

"The HDB estates in Clementi, Jurong East, Pandan Gardens and the West Coast area would provide a catchment of upgraders and investors from HDB homes."

ZACD Group executive director Nicholas Mak expects just five to eight bids as there will be three other GLS tenders closing on the same day - Jan 30.

These are two residential sites - in Handy Road and Chong Kuo Road - and an HDB executive condominium site in Sumang Walk.

"As this (West Coast Vale) site is not the most attractive one, the four land tenders would dilute developers' attention," he said. "A major disadvantage is that it is relatively far from MRT stations and retail amenities.

"However, it could appeal to some developers who may feel that they would be priced out of the tender for more attractive sites."

Mr Mak expects the top bid to range from $660 to $720 psf ppr.

The site is linked to West Coast Highway and Ayer Rajah Expressway, and is fairly near shopping and dining options such as Westgate, Jem and Big Box in the Jurong Lake District.

Nearby schools include Nan Hua Primary, Commonwealth Secondary and The Japanese School.

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A version of this article appeared in the print edition of The Straits Times on December 20, 2017, with the headline West Coast Vale site triggered for sale from reserve list. Subscribe