Hi Jason,
New launches usually push up the prices of surrounding condos. The selling price of the new project at the new land site will depend on the winning developer's bid price, construction costs, and their expected profit margin.
There are many units in the immediate surroundings; 1163 units in total for Woodgrove, Rosewood, Casablanca and Rosewood Suites. The new project is expected to yield another 265 units. As such, I would think that there is enough supply for this location.
Also, we need to consider how long the developer will hold the land before releasing the project for sale.However, it will not be more than 2-3 years because the tenure is only 99 years. Therefore, in that time period, there will be capital appreciation but it would not be by a lot. $650-$700psf for Woodgrove by then, will be a good estimate.
As you have pointed out, Woodgrove is the only suitable comparable to the new launch, as it is directly next to it. Also, the plot ratio for the new launch and Woodgrove is 1.4, while Rosewood and Casablanca has a plot ratio of 2.1 (that's why they have more units). As such, the price at which the new project will sell will affect Woodgrove more than Rosewood or Casablanca.
Thanks!
Regards,
Richard Wan
Black Diamond Real Estate
richardwan@live.com
94363793
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