Tender Closing for URA residential sites at Handy Road, West Coast Vale and Chong Kuo Road
Mr Ong Teck Hui, National Director, Research & Consultancy
王德辉, 新加坡董事 (新加坡)
“Bidding for all three sites was bullish with top bids exceeding or at the top end of expectations. This is despite the batch tender closing which did not seem to tamper bidding in any way as well as the availability of collective sale sites on the market. For example, CDL bid competitively for both the Handy Road and West Coast Vale parcels coming in top for both. The top bidders seemed to have priced in an increase of 10 to 20% in unit prices from current level.
Of the three sites, the Handy Road parcel is the most attractive due to its location off Orchard Road near Dhoby Ghaut interchange station and the abundant amenities nearby. The top bid at $1,722 psf/pr would translate to a break-even of close to $2,400 psf. Recent transactions in Sophia Hills averaged around $2,000 psf so a significant price upside would have been built into the Handy Road tender.
Being a small site, the Chong Kuo Road parcel is attractive to bidders due to its low absolute land price. Nestled in a cosy residential neighbourhood with amenities nearby and accessible from Sembawang Road, it would appeal to buyers who like such settings. The top bid at $681 psf/pr is above expectations and we can expect selling prices above $1,200 psf.
The West Coast Vale site rides on the success of Parc Riviera where 97% of its 752 units have been sold at prices averaging $1235 psf. With the top bid at $800 psf/pr, we can expect selling prices above $1300 psf when the project is launched. Although the site is not near an MRT station, it is located within a mature residential estate which will appeal to many buyers.”