Singapore Property | Based on a report by Urban Redevelopment Authority, a West Coast Vale site received 9 bids at the close of its tender on 9 February.
The highest bid was placed by China Construction Development at $291.99m or approximately $592 psf based on the gross floor area, close to the expected figure of between $450 to $600 psf ppr. MCC Land came in second with a bid of $ 289.9 million while Allgreen Properties took the third place with its bid of $286.82 million.
The 1.6 ha site was launched for sale in 7 December 2016 and it is situated adjacent to Park Riviera. It is expected to yield about 520 units on its area of approximately 176,294 sq ft.
The 99-year leasehold site is also located along Sungei Pandan near the park connector network and within a private developments enclave. It is also near the Jurong Lake District and shopping area such as Jem.
CBRE Research head Singapore and South East Asia, Desmond Sim noted that prefabricated materials will require to be used at the site to help in keeping the constructions costs low.
Sim noted that the site is the last to be sold under the 2016 GLS confirmed list. The profiles of the parties bidding for it reflect interest from small cap players and relatively newer developers who found the quantum easy to manage and affordable. This is meant to reduce the risks for developers who are making their entrance into the residential market.
According to Ong Teck Hui, national director of research JLL, the top bid was towards the upper end of what was expected. It was also 7.4% more than $551 psf ppr that was paid for Parc Riviera that is adjacent.
Mr. Ong noted that having nine bidders for the site was a good turnout since it is not near an MRT station.