West Coast Vale site to attract bids ranging $222.1m to $246.8m

EL Development could place a bid to secure sites along West Coast Vale.

West Coast Vale site, which was recently put up for grabs by the Urban Redevelopment Authority (URA) could attract a top bid of $246.8m. According to Cushman and Wakefield director for research Christine Li, advantages of the site include its waterside frontage alongside the Sungei Pandan river and easy accessibility to the Ayer Rajah Expressway. 

However, Li noted that its distantance from MRT stations might pose a challenge to the project, given that it is 1.5km away from Clementi MRT station and 1.8km away from Jurong East MRT station

"The project need to be priced quite attractively at entry mass market level of $1,000 -$1,100 psf in order to receive good response from the market. Its next door neighbour Parc Riviera, developed by EL Development, along with the Trilinq, which has 288 out of 755 units currently unsold can also post some competitions to the West Coast Vale site," she said.

With ths, EL Development may also consider placing a slightly more aggressive bid to secure the West Coast Vale site in order to maintain pricing power in the area.

"Such a move is not unprecedented, with MCC Land placing a strong bid of 7% over the next highest bidder for The Alps Residences site in Tampines on May 2015 to maintain its pricing power over its nearby The Santorini project, which had 418 out of 597 units unsold as at 1Q2015," she said.