West Coast Link / West Coast Crescent site attracts record number of bidders

Twelve developers participated but bids were said to be conservative. Highest bidder was Boo Han Holdings Pte. Ltd. with $176 million.

lan Cheong, Associate Director, Research & Consultancy, Savills Singapore, commented, “Boo Han’s bid at S$175.8 million or S$461 psf ppr would at current sales prices give it a profit margin of about 27%. This means that the developer only needs to sell about 73% of the Net Saleable Area to breakeven, assuming current market prices of S$1,150 psf hold for the area. Should prices in the vicinity (e.g. The Vision) increase, naturally Boo Han will reap a greater profit.”

He noted, “The interesting point about this tender is that a total of 12 developers participated, upsetting the recent trend which saw only 3 or 4 parties taking part in the past few Government Land Sales programme. Another insight seems to be a divergence in opinions amongst developers with two-thirds of them submitting more conservative bids by building in wider safety margins.”

Meanwhile Ms Chia Siew Chuin, Director of Research & Advisory, Colliers International, said the number of bidders for this site is the highest for a residential site since February 2011, when 19 parties contested for the site located at Bishan Street 14.

Although she explained the large number of bidders is not surprising “as the area is a popular suburban district given its proximity to tertiary institutions including National University of Singapore and Ngee Ann Polytechnic, established supporting facilities and amenities in the nearby Clementi public housing estate as well as leisure and recreational uses such as the West Coast Park and the Southern Ridges which stretches from Kent Ridge Park to Mount Faber Park.”

Mr Li Hiaw Ho, Executive Director, CB Richard Ellis, said, “The West Coast Park and Clementi Woods provide a lot of greenery and open space for the residents in this neighbourhood. This location is popular with the Japanese community because of the presence of Waseda Shibuya High School and The Japanese Supplementary School.” He added that amenities and shopping facilities are available at West Coast HDB estate and West Coast Plaza.

“At a land cost of $460.58 per sq ft per plot ratio, new home units at the site are likely to sell for an average price of around $900-$940 per sq ft and breakeven at about $800-840 per sq ft,” said Ms Chia.

The 12,662.7 m² residential site was launched for public tender on 5 May 2011 and was offered for sale on a 99-year lease.