At the close of the bid, after receiving a just six bids, a land lot for private, residential development at West Coast Vale created a sub-par response. Property analysts have said it represents a more discerning approach due to the conservation of financial resources, holding off for more lucrative sites.
$551 psf, ppr is also the lowest bid since the tender for the condomiunium site Avenue 10, at Tampines. The website was able to keep afloat with the cost of $483 psf, ppr, but unfortunately sank in April of this past year.
“One possible reason for the comparatively low number of bids is that among the six residential sites of the Confirmed Record of the GLS Programme for 1H2015, the acreage tract at West Coast Vale is just one of the less attractively located sites. Moreover, some developers may be preserving their financial resources for the approaching tenders – some of the more appealing sites in the GLS Programme,” said Mr. Mak.
Though there are no MRT stations within close proximity for walking, the site is near numerous commercial amenities, including Jem, Westgate and Big Box at the Jurong Lake District.
Mr. Mak projects that units at the West Coast Vale site will be found somewhere between $1,200 and $1,300 psf.
The very best bid by EL Development for the West Coast Vale site is very similar to the cost of IOI Properties aquiring the Jalan Lempeng site in January of 2012 – comparable to the other winning bids of GLS property tenders in the Clementi Planning Area of the last four years. However, it is still about 25% lower compared to the cost the fresh location of Waterfront@Faber, of Faber Walk. The ardently challenged site at Faber Walk, collecting about 18 bids, came to a close right before the Total Debt Servicing Ratio (TDSR) framework came into effect, in late June of 2013.
“The (West Coast Vale) site fronts the Aye Rajah Expressway (AYE) and is also not near any MRT station,” said Mr. Eugene Lim, Essential Executive Officer at ERA. “Further, in view of large 18,275 units of private residential units with sale licenses but are unsold, developers’ interest for this site may as such be more conservative. Going forward, we expect developers’ interest in acreage tenders to be increasingly more discerning, depending on the location and aspects of the sites put up for bid.”
EL Development is the developer of the concerning Trivelis Design, Build and Sell Scheme (DBSS) flats at Clementi, where many residents at the whopping 888-unit development have whined about several defects and low quality of their once-hopeful new flats.
EL Development did offer a goodwill package to accommodate all the issues raised, to restore comfort with the residents.