http://www.straitstimes.com/archive/...twood-20140111

HOT SPOT

Developers turn attention to Westwood

Published on Jan 11, 2014

By Cheryl Ong


CHANGE is afoot for the sleepy Westwood Avenue estate in Jurong West after a bidding war erupted for a development site.

The district has been largely unchanged for years, with a smattering of landed homes, public housing and educational institutions.

But new residential developments and improved accessibility could soon add considerable vibrancy to the district.

Property experts said strong interest in a tender for an executive condominium (EC) site this week reflected developers' confidence in demand for homes there.

The 186,052 sq ft site fetched an unexpectedly bullish top bid of $198.9 million in a 12-way tussle, beating experts' expectations of six to 10 bids.

The highest offer from a tie-up between Koh Brothers and Heeton Homes translates to $382 per sq ft (psf) per plot ratio, which puts the selling price of units at $800 to $820 psf.

Experts predict that demand for the new EC - expected to be launched in 2015 - will be strong as the area has lacked developments of this type.

ECs are a hybrid of public and private housing, sold with Housing Board restrictions. They are fully privatised after 10 years.

R'ST Research director Ong Kah Seng pointed out that only 3,110 EC units are likely to be launched in the second half of the year, so pent-up demand for more units is likely in 2015.

This is only the second EC site to be sold in the area. The neighbouring condominium, The Floravale, was previously an EC when it was built in 2000. It has now been fully privatised.

Units at the 754-unit project were sold for an average of $717 psf, based on data from the Urban Redevelopment Authority. A 1,249 sq ft unit was sold for $817 psf in March last year - a historical high for the development.

Kheng Leong Co's landed cluster housing project is the latest development in the area to go on the market. The 93-unit The Woods is across the road from The Floravale, and was launched in June 2011. Units went for a median price of $484 psf.

Other landed housing estates there include the 99-year-leasehold Westville and Westwood Park, where homes were transacted at about $2 million last year.

Despite Westwood's distance from major transport nodes, accessibility should improve when the Jurong Region Line is constructed. It is expected to be operational by 2025, and will connect the area to main activity hubs such as Boon Lay, Jurong East and the future Jurong Gateway, noted DTZ research head Lee Lay Keng.

Government plans to develop the nearby Tengah area in its Land Use Plan also mean that more developments could be added to Jurong West, said CBRE research head Desmond Sim.

Investors can also look forward to rental demand from expats working at the JTC Corp's upcoming Cleantech park and the Nanyang Technological University. Three-bedroom units at The Floravale were leased for $3,000 to $3,500 a month in the second half of 2013, said Mr Sim.

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