West Coast Vale site draws top bid of $292m

[reporter2]

http://www.straitstimes.com/business...op-bid-of-292m

West Coast Vale site draws top bid of $292m

Feb 10, 2017

China Construction Development's offer seen to reflect optimism in housing market

Rachael Boon


China Construction Development has put in the top bid of $292 million in a hard-fought, nine-way battle for a residential land parcel in West Coast Vale.

The bid of $592 per sq ft per plot ratio (psf ppr) was towards the upper end of expectations, said JLL national director of research and consultancy Ong Teck Hui.

He added: "It reflects optimism that the residential market will continue to improve. Private home sales in 2016 grew nearly 16 per cent over the previous year and is expected to improve further in 2017, while price declines have been moderating.

"This has led to the perception that the market is closer to the bottom and contributed to the firm bidding for the subject site."

The West Coast Vale 99-year leasehold plot was launched on Dec 7. The tender closed yesterday.

Close behind, in second spot, MCC Land tendered $289.9 million, or about $587.3 psf ppr, for the parcel with a site area of about 176,294 sq ft - close to the top end of the expected $450 psf ppr to $600 psf ppr range.

Mr Desmond Sim, head of CBRE Research for Singapore and South-east Asia, said: "The plot is the last site to be sold on the Government Land Sales confirmed list for 2016 and the profiles of the bid parties reflect interest from some relatively newer developers and small-cap players who find the quantum affordable and easy to manage."

This will negate the risks for developers making their first foray into the residential market, he added.

Mr Ong said the top bid was 7.4 per cent above the $551 psf ppr paid for the adjacent Parc Riviera site as it is slightly superior, being farther from the Ayer Rajah Expressway.

The West Coast Vale site is also somewhat near the Jurong Lake District and malls like Jem.

Mr Sim said the site is in an enclave of private developments, an established area close to the park connector network along Sungei Pandan. "It requires the use of prefabricated materials which will help to keep a lid on construction costs."

Mr Ong noted that nine bidders was a good turnout for this site, which he regarded as mediocre as it is not near an MRT station.

He added: "As sales at Parc Riviera have not been brisk, with prices averaging around $1,200 psf, the subject development may have to be priced more competitively to achieve better sales progress."

[reporter2]

http://www.businesstimes.com.sg/real...oast-vale-site

China Construction tops bids for West Coast Vale site

It offers S$291.99m for the 99-year leasehold plot, nosing ahead of MCC Land by just 0.7%

Friday, February 10, 2017

by Kalpana Rashiwala
[email protected]
@KalpanaBT


CHINA Construction (South Pacific) Development Co has pipped compatriot MCC Land to place the top bid for a private housing site at a state tender that closed on Thursday.

The tender for the 1.64-hectare site along West Coast Vale, drew nine bids, reflecting developers' continuing appetite for land and confidence that the market will improve.

The Urban Redevelopment Authority (URA) has stipulated a maximum of 520 residential units for the development on the 99-year leasehold plot.

China Construction's bid of S$291.99 million, or S$591.51 per square foot per plot ratio (psf ppr), was just 0.7 per cent more than the S$289.9 million or S$587.28 psf ppr from MCC Land (Singapore).

The top bid was not only at the upper end of market expectations, but 7.3 per cent more than the S$551.15 psf ppr that EL Development paid for the next-door site in August 2015 and which it is now developing into the Parc Riviera condo.

Sales at the condo have been rather slow since the project's launch in November last year. As at end-December 2016, only 127 of the project's 752 units had been sold.

JLL national director Ong Teck Hui noted that the higher psf ppr price achieved for the latest plot is attributable to its slightly superior location, being further away from the Ayer Rajah Expressway, as well as a more optimistic market outlook today compared with August 2015, when the tender for the Parc Riviera parcel closed. Six bidders participated in that tender.

"As sales at Parc Riviera have not been brisk with prices averaging around S$1,200 psf, the development on the latest site may have to be priced more competitively to achieve better sales progress," Mr Ong said.

For both sites, the government has stipulated the use of Prefabricated Prefinished Volumetric Construction or PPVC standard - a high-productivity construction method.

The other bidders at Thursday's tender include Robert Kuok's Allgreen Properties, which offered S$581.04 psf ppr for the site, and Sim Lian Land (S$561.15 psf ppr).

Far East Civil Engineering partnered Sekisui House for a S$534.36 psf ppr bid.

Hong Leong Holdings' Intrepid Investments teamed up with Verwood Holdings (part of City Developments) and TID Residential for a S$520.01 psf ppr bid.

Homegrown EL Development priced the site at S$502.80 psf ppr.

Nanshan Group Singapore Co - which also hails from China - offered S$501 psf ppr, while a partnership between ZACD Investments and Maxdin2 was at the bottom of the bids table, at S$451.53 psf ppr.