New condominiums in the West Coast neighbourhood in District 5 have been beneficiaries in the lead-up to the public preview of Twin VEW by CSC Land Group. When the sales gallery opened on the weekend of April 21 and 22, it drew more than 7,500 visitors.

 

The crowd at the Twin VEW preview weekend on April 21 and 22. The launch is scheduled for the weekend of May 5 and 6 (Credit: CSC Land)

The 520-unit private condo, which is CSC Land’s maiden project in Singapore, will be launched on May 5 and 6. Market indication is that units will be priced at an average of $1,350 to $1,400 psf. The 99-year leasehold condo is located on West Coast Vale, a five-minute drive from Jurong Lake District, which has been earmarked as the city-state’s second CBD.

Alice Tan, director and head of consultancy and research at Knight Frank Singapore, believes Twin VEW could set new benchmark prices in the area.

Positive sentiment in the residential market this year has also driven up sales at UOL Group’s The Clement Canopy, located at Clementi Avenue 1 near West Coast. The 505-unit development was launched last February and is 95% sold so far.

Based on caveats lodged to date, more than 20 units were sold at The Clement Canopy at an average price of $1,482 psf last month. This was 12% higher than the average price of $1,323 psf when the project was first launched over a year ago.

About 85% of the buyers are said to be locals, with many buying for their own use. The four-bedroom units were the first to be sold out, followed by the two-bedroom ones, according to agents.

There are just 24 three-bedroom units left for sale. Asking prices start from $1.396 million ($1,410 psf) for a 990 sq ft unit.

Right next to Twin VEW is Parc Rivieria, a 752-unit, 99-year leasehold condo by EL Development. Average psf price has risen from $1,194 in the first three months of launch from November 2016 to January 2017, to $1,240 for the period from January to April 2018. The latest transaction was on April 20, when a four-bedroom unit on the 30th floor was bought for $1.56 million ($1,354 psf).

When Parc Riviera was first launched, the developer had enticed buyers with a novel “one-tier pricing” scheme, where the psf price for each unit type was fixed regardless of the level it was on. The pricing scheme was offered for the first 278 units when the project was first launched.

Meanwhile, prices of older developments in the West Coast area have also risen.

Monterey Park, on West Coast Rise, just one street from West Coast Vale, saw the average psf price of units transacted jump 18.36% y-o-y from an average of $986 for February-April 2017, to $1,167 for February-April 2018. The 999-year leasehold development has 280 units and was completed in 2005.

Monterey Park was developed by City Developments (CDL), which won the 99-year leasehold site adjacent to Twin VEW with a bid price of $472.4 million, which translated into $800 psf per plot ratio (ppr), in January this year. The psf ppr price is 35% higher than what CSC Land paid for Twin VEW’s site last year.

Given CDL’s bid price, Knight Frank’s Tan reckons the developer will launch its new project om West Coast Vale sometime in 1H2019, at selling prices above $1,500 psf.

In the meantime, all eyes will be on Twin VEW’s launch this weekend (May 5 and 6). According to Tan, the project has units with compact yet functional layouts, which are ideal for small households.

“With our revised forecast of a 7% to 10% increase in private residential property prices this year, the price upside for projects near growth precincts is likely to be more favourable,” she adds. “The attractive entry prices offered by CSC Land are likely to provide an attractive proposition as they offer future price upside.”