Map of the Bukit Batok mixed-use site. Source: URA
Despite the slowdown in Singapore’s property market, the tender for a residential and commercial site in Bukit Batok that was launched for sale on 30 March drew 11 bids, with a Chinese developer submitting the highest offer, revealed the Urban Redevelopment Authority (URA).
The top bid of $301.16 million, or $6,830 psm based on the plot’s maximum permissible gross floor area (GFA), came from Qingjian Realty.
This was followed by Allgreen Properties with an offer of $277.98 million ($6,305 psm), and Wee Hur Development with $268 million ($6,078 psm).
Located at Bukit Batok West Avenue 6, the 14,696.7 sq m site has a leasehold tenure of 99 years. It has a plot ratio of 3 and a maximum GFA of 44,091 sq m.
If the site is awarded to Qingjian Realty, it would become its first mixed-use development in Singapore, following its $638 million acquisition of Shunfu Ville last week. In total, it plans to build about 500 condo units on the Bukit Batok site.
“This location’s close proximity to the Jurong district, and the success of recent mixed development launches, are very positive indicators of the market’s likely reaction to a potential Qingjian development here,” said Li Jun, General Manager of Qingjian Realty.
According to Desmond Sim, CBRE’s Research Head for Singapore and Southeast Asia, the bidders are probably looking to gain a first-mover advantage, as the built-up density in the site’s vicinity is currently low.
The site’s proximity to the upcoming Jurong Innovation District (JID) may also have contributed to attracting interest, as this precinct will house more people.
“Those working in the JID might find it attractive to either lease a residential unit or buy an apartment (in Bukit Batok),” he added.
In addition, there has been strong demand for residential units within mixed-use projects as seen in recent launches. Many developers also pounced on the tender due to the tapering of the Government Land Sales Programme and the scarcity of available land in the area, added Sim.
View of the site at Bukit Batok. (Photo: URA)
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
