Prefabrication construction processes were the root of surprisingly affordable bids for the site at West Coast Vale at a bid which recently closed.
EL Development had the top bid – $314.1 million or $551.15 per square foot, per plot ratio (psf, ppr) for the site (about 3.2% above the second highest bid by a joint venture of Hoi Hup Realty, Sunway Developments, and Oriental Worldwide Investments).
Prefab Requirement Increase Prices
The six bids were falling on recent tenders, most likely because of the requirement to use prefabricated, prefinished volumetric building (PPVC). You can even place the fault with all the location – fronting the Aye Rajah Expressway (AYE) and is a whopping 2km from the nearest MRT station, found in Clementi.
The bid at the end of the spectrum was by Singland Homes and Kheng Leong Co, at $236.9 million (only $415.69 psf, ppr).
“It’ll be one of the very first sites to adopt PPVC for such a high-rise development,” said Mr. Desmund Sim, CBRE Research Head for Singapore and South-East Asia. “For many developers, a construction price with PPVC is still a punt… but it is generally expected to boost building costs by a fair bit.”
The possible 595-home-yeilding site has a building height higher than any lately sold websites with the PPVC condition. It should be noted – a mixed-use site in Yishun Avenue 4 sold in January, as well as a website in Jurong West Street 41.
Lim Yew Soon, EL Development Managing Director, said the business will likely build two blocks of 36-40 storeys each, blending one to townhouses, cluster housing and four bedrooms.
There was a contest of 18 parties bidding for this site, concluding with a top enormous of $687 psf, ppr. It was said that the bid for the latest side of EL Development was a bit ‘careful,’ given the challenging market conditions and sales at nearby projects.
Mr. Mak, SLP International Executive Director of Research, claimed the number of total unsold units left in similar condominiums nearby – only below 800 – was “not too excessive.”
There are no current, major condominium projects in the surrounding area of Clementi still to be launched for sale, which keeps EL Development in favour. The price of the proposed Parc Riviera condo might be between $1,200 to $1,300 psf.