http://www.businesstimes.com.sg/real...est-coast-vale

Consultants have mixed views about reserve site in West Coast Vale

While some cite its locational advantages, others say there are more attractive sites on the GLS programme

By Lynette Khoo

[email protected]

@LynetteKhooBT

May 26, 2016


THE Urban Redevelopment Authority (URA) on Wednesday released detailed sales conditions for a residential reserve site in West Coast Vale, which property specialists are mixed in their views about the site's appeal.

The 99-year leasehold site under the first-half of the 2016 Government Land Sales (GLS) programme can potentially yield up to 520 residential units. The reserve site will be triggered for public tender when a minimum acceptable bid is received.

With a site area of 16,378 square metres, the land parcel's permissible potential gross floor area is estimated to be 45,858 sq m. It is located along Sungei Pandan and linked to West Coast Highway and Ayer Rajah Expressway (AYE).

Property specialists noted some positive attributes of the site such as the waterway frontage of Sungei Pandan, easy access to the highways while shielded by neighbouring condominium development, Parc Riviera, from the traffic noise of AYE.

But not everyone is fully convinced of its appeal.

SLP International executive director Nicholas Mak noted that a major disadvantage of this site is that it is relatively far from the MRT stations and amenities.

The total number of unsold units in nearby condominium projects Seahill and The Trilinq is around 640 as at end-April, which is "not excessive", but a neighbouring project Parc Riviera could be launched in the next 12 months, Mr Mak said.

"In view of the soft residential property market and this subject site is not the most attractive one among the other sites in the GLS programme, it is unlikely for this site to be triggered for tender in the next 12 months," he said.

But should this site be launched for tender now, it may attract no more than six bidders with an estimated top land bid of S$246.8-271.5 million or S$500-550 per square foot per plot ratio (psf ppr), Mr Mak added.

R'ST Research director Ong Kah Seng is also expecting "average" interest from developers in view of the Parc Riviera development in the immediate vicinity and the wide choices of resale private homes in the entire stretch of West Coast locality, which are generally freehold or have a 999-year leasehold. He is expecting 6-8 bidders with a top bid of S$550-580 psf ppr if the site is triggered from the second half of this year.

JLL national director of research and consultancy Ong Teck Hui felt that the bids for this site should be 5-7 per cent higher than that for the site of Parc Riviera, given that it is away from the noisy AYE and the current improved market sentiments may continue.

The demand for an eventual project on the reserve site is likely to be from upgraders as well as investors, judging from the buyer profile for Waterfront @ Faber, which has since sold out with prices averaging close to S$1,200 psf, he noted.

The adjacent site of Parc Riviera was sold to EL Development in August 2015 for S$314.1 million or S$551 psf ppr after six bids were received. EL Development is planning 752 units for the project, which is expected to be launched in the third quarter of this year.

Most bullish among those polled by The Business Times was Knight Frank head of consultancy and research Alice Tan, who envisages a potential trigger of the site within the next two quarters.

She noted that this site has fairly good location attributes - a short drive to Jurong East Regional Centre and the National University of Singapore, as well as being close to a number of educational institutions. "The project is likely to appeal to homebuyers mainly for owner occupation objective," she said.

With the site offering land-hungry developers a manageable investment quantum and a mid-sized project scale, there should be eight to 10 bidders vying for the site with the top bid at S$550-600 psf ppr if there is a public tender, Ms Tan opined. "The potential selling price of the residential units, if successfully sold, based on prevailing market conditions, could be in the range of S$1,150 to S$1,300 per sq ft of strata area."