CityDev wins bids for Handy Road and West Coast Vale

Selling price of Handy Road units is poised to exceed $2,500 psf ppr.

City Developments Limited (CDL) submitted the winning bids for two land parcels at Handy Road and West Coast Vale, the Urban Redevelopment Authority (URA) revealed.

According to a press release, both residential sites were offered for sale on 99-year lease terms.

CDL’s bid of $1,722 psf ppr for the Handy Road site won against 10 others, whilst its bid of $800 psf ppr for the West Coast Vale site won against six bidders.

OCBC Investment Research said this was 12.3% and 0.7% higher than the second highest bidder for each of the projects, respectively.

The broker estimates breakeven average selling prices (ASP) of $2,250 psf for the Handy Road project and $1,200 psf for the West Coast Vale project.

Selling ASPs would likely have to come in above $2,500 psf for the former and $1,400 psf for the latter.

Sophia Hill, which is located near to the Handy Road site, sold six units YTD at an average price of $2,058 psf.

OCBC analyst Wong Teck Ching Andy said, "CDL’s active participation in the land tenders does not surprise us, underpinned by the recovery in the Singapore residential market."

A decision on the award of the tenders will be made known by URA at a later date.