City Development Limited is the highest bidder for the two housing sites at a state tender that just recently closed. The land parcelat Handy Road went for $212 million while the other one at West Coast Vale went for or $472 million. That equates to about $1,722 per square foot per plot ratio or psf ppr for Handy Road and $800 psf per plot ratio for the residential plot of land in West Coast Vale.
CDL is planning on developing 3 residential towers consisting of 8 to 10 stories high and approximately 200 residential units that comes with basement parking lot for the Handy Road site. They are also planning on turning the conservation structure into the development’s clubhouse for the residents.
The residential plot at West Coast Vale will comprise of two thirty-six story towers and under the URA guidelines, not more than 730 residential units is recommended for this site.
For Handy Road, there were 10 bids, West Coast Vale received 6 bids, and plot of land pacel at Chong Kuo Road received 8 bids The bidding for all three sites was bullish, exceeding or at the highest-end of expectations.
It is believed that Handy Road received the most bids because it’s the most attractive of the three and has a District 9 location which is off Orchard Rd. CDL’s bid was 12.3% higher than Sing Essential.
The winning bid was only 0.6% short of the standard or point of reference that was set for Jiak Kim Street which was rewarded to Frasers Centrepoint a month ago and priced at $1,733 psf ppr. The International head of Singapore research, estimates the City Development Limited’s breaking even cost for Handy Road is approximately $2,300 psf and believes that the average selling price will be at about $2,650 psf.
The chief executive of City Development Limited said they believe there is great potential for the two sites they won and believe that Singapore’s residential market is starting to recover. He said they will continue to look for other opportunities to increase their local land bank.
The 493 units at new launch condo, Sophia Hills was almost completely sold by 95% in December and the median prices increased to slightly above $2000psf from $1,900 to $2,000 psf earlier on. This gives developers higher expectations for other sites going up for bidding.
West Coast Vale condo was 35% higher than what was paid for the Twin View project. Adjacent to that site is the Parc Riviera which sold 97% of the 752 units last month at an average of $1,200 psf within 13 months of being launched. This has also peaked the confidence of developers in the area.
The International head of Singapore research believes that West Coast Vale will break even at $1,250 psf with an average selling cost of $1,400 to $1,500 psf. The winning bid came in at only 0.7% higher than the next bidder. The Essence Condo( at Chong Kuo Road) was only 0.1% higher than the next bidder. The sale of all 3 sites did not temper bidding prices in any way.
City Development is very familiar with the West Coast region as they also developed Monterey Park and Hundred Trees.
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The development at West Coast Vale is known as Whistler Grand
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