A site on Bukit Batok – the sole mixed professional and domestic plot put forward under the Administration Land Gross sales programme pertaining to the primary half of the 2010 season – features attracted 13 bids.
While interest in the 14, 696. 7 sq m piece in Bukit Batok Western Avenue a few and in close proximity to Bukit Batok MRT rail station was large, analysts believed that a few developers had been more tested than people in their bidding.
One of them said that interest in the site was keen as shown by the 11 bids. This is testament to developers’ hunger for land. However , the difference in each developer’s market outlook and appetite is reflected by the wide margin in bid pricing of up to 60 per cent.
The tender closed yesterday with the top bid of $301 million or $635 per square foot per plot ratio (psf ppr) submitted by Qingjian Realty (South Pacific) Group, said the Urban Redevelopment Authority in a statement.
That was just 8. 3 per cent above the second-highest bid, which was submitted by Allgreen Properties.
Many of the bidders were mindful of the current market conditions and submitted fairly conservative bids, said another analyst, noting that the top bid was also 5. 7 per cent lower than the winning bid for a comparable land parcel in Hillview Avenue in April 2011, which is where The Hillier condo has been built.
It was also 21. 2 per cent lower than the winning bid for another comparable land parcel in Jelebu Road in November 2011, now the site of Hillion Residences condo.
Even so, Qingjian’s $635 psf ppr was at the upper end of expectations.
This could be due to more favourable new-home sales in the past two months, and that mixed developments tend to find ready demand from home buyers. The government did not sell any mixed development sites last year.
At the moment, the built-up density in the surrounding areas is low, and bidders are in all probability looking to gain a first-mover advantage when ever this area starts to intensify through future improvements (such as) the coming Jurong Technology District.
Should the site can be awarded to Qingjian, will probably be the developer’s first compounded development assignment in Singapore, and its second successful acreage acquisition pertaining to private construction development in may.
Last week, Qingjian announced that this had created a profits and purchase understanding with the owners of Shunfu Ville, for a association price of $638 , 000, 000. Qingjian reported in a record that it is attempting to build regarding 500 flat units within the Bukit Batok site, by using a gross floorboards area of 46, 091 sq m.
For a acreage price of $635 psf ppr, it is actually estimated the breakeven price ranges for the residential contraptions will consist of $920 to $980 psf.
There are couple of new 99-year leasehold individual non-landed personal developments on the Bukit Batok site, although the median transacted prices of units on three these condominiums (Hills TwoOne, Hillsta, and Kingsford Hillview Peak) in the Bukit Batok preparation area ranged from $1, 199 to $1, 326 psf on January to May in 2009.