It seems that the property prices are not deterred much by the measures by Government. In the West side of Singapore, the Hong Kong developer Cheung Kong will be launching the Vision at West Coast Crescent at the 99-year leasehold at an average asking price ranging from $1,000 – $1,2000 per sq ft.

This high end development comprises 281 apartments and 14 strata terrace units. The apartments will be housed in two towers – one with 33 levels and the other with 32. The project will be the tallest residential development in the area. It will have two-, three- and four-bedroom units ranging from 818-1,604 sq ft. There will also be two penthouses. Going by the average asking price cited, a four-bedder could cost about $1.9 million.

It is really quite an ambitious prices set by the developer. Cheung Kong clinched the site in a state tender in March 2008 with a bid of $305 psf per plot ratio (ppr). Just imagine the land cost of $305 psf could be easily translated into an estimated break even of $680 psf to $720 for new condominiums of market range. Earlier the development units were expected to be launched from $750 and $800 psf.

While the development boasts to have the most luxury finishes and design, with a bathroom costing 3 times more than a conventional construction (which is puzzling to me why should a buyer need such an expensive one: maybe of its full automation for its toilet fittings and fixtures, or the imported marble cladded bathtub, or maybe or maybe…..), I would think that any buyers of the development would really have factored in extremely optimistic property market in the coming years for their purchase for the unit.

Let’s do a simple maths here again:
Land Cost                                                                                                 $305 psf
Construction Cost                                                                                $400 psf (which I was advised is considered very high in a luxury residential context. Moreover no demolition cost which applies to enbloc sales)
Consultancy fee inclusive of authority submission                $40 psf (10% of construction cost)
Miscellaneous cost i.e. financing, marketing, etc                    $100 psf (10% of selling price)
Total Cost                                                                                              $845 psf

It seems that the developer is targeting at least 30% return purely on the straightly cost versus profit basis, setting their selling prices from $1000 to $1200. It is considered very super good profit for real estate development.….. After all this area is in West Coast and is no way near to any MRT station. The Haw Par Villa MRT, which is part of the upcoming Circle Line, which will be quite a distance away. Moreover it is a 99 year lease hold development.

One more thing: the tall residential tower may be blessed by unblocked seaview with the relative low density developments around, however the adjacent area next to the West Coast Park is the PSA Marine which is dotted with lines of shipyard and dockyard, and the other end is industrial parks with factory flats. Therefore the scenic views towards the sea is somehow compromised.

Of course this development does have its strengths. I like most of its location since it is highly accessible with its well connected to highways yet is pretty laid back in its setting with its proximity to Clementi Woods and West Coast Park. And it is very near to NUS, which could be highly attractive to students and lecturers (though these may be considered too high end and expensive by them).

By Emilyn Yap
CHEUNG Kong has set its sights on building the tallest – and perhaps priciest – condominium project in the West Coast area.
The Hong Kong developer will launch The Vision at West Coast Crescent this weekend. It plans to release no more than 100 units at the 99-year leasehold project, and the average asking price will range from $1,000-$1,200 per sq ft (psf).
The Vision comprises 281 apartments and 14 strata terrace units. The apartments will be housed in two towers – one with 33 levels and the other with 32. The project will be the tallest residential development in the area, said Cheung Kong sales manager Cannas Ho yesterday.
It will have two-, three- and four-bedroom units ranging from 818-1,604 sq ft. There will also be two penthouses. Going by the average asking price cited, a four-bedder could cost about $1.9 million.
The target psf price tag for units at The Vision looks high compared with those at developments nearby. Just next door is the 99-year leasehold Blue Horizon, which was launched around 2001. Units there went for $764-$808 psf last month, as caveats lodged show.
Homes at ClementiWoods Condominium in the vicinity changed hands at $836-$957 psf last month. It has a 99-year lease and entered the market in 2007.
But Cheung Kong is marketing The Vision as a high-end project in the West Coast area – and that probably shows in the asking prices.
According to the developer, the construction cost is ‘high due to the quality finishes and high-end fittings used’.
For instance, Cheung Kong says it will cost about three times more to build a bathroom in The Vision than in a typical condominium.
The developer says it is confident there will be demand because of several factors. For one thing, the site is across the road from West Coast Park, and about 70 per cent of units will enjoy unblocked sea views.
The area is also popular with expatriates. And this is a group which The Vision is targeting, besides Singaporeans.
Ms Ho expects owner-occupiers to make up the majority of buyers, and says there have been plenty of enquiries. BT understands agents have collected cheques from potential buyers.
Chesterton Suntec International research and consultancy director Colin Tan reckons The Vision’s target pricing could be ‘a bit strong’ for owner-occupiers. Investors would not mind paying, if they believe property prices will continue rising, but they tend to be more interested in one- bedroom units, he said.
‘If the launch is successful, it will set the benchmark’ for developments in the West Coast area, he said.
Elsewhere, more property launches are on their way. Agents are gathering interest for Ho Bee’s Seascape and City Developments’ The Residences at W, both at Sentosa Cove.
Sources say Seascape could be launched towards the end of the month, at asking prices of $2,700-$3,000 psf.
Agents are also advertising for Hong Leong Group’s 76 Shenton Way, said to comprise mostly one and two-bedders. BT understands it could be previewed at month-end, and agents are quoting prices above $2,000 psf.