Mixed Development in Bukit Batok
Urban Redevelopment Authority (URA) data has shown the highest bid of S$301.2 million for a mixed commercial-cum-residential site in Bukit Batok located in Singapore which has released from the Confirmed List of the Government Land Sales (GLS) in the first half of this year. The bid has come from Chinese developer Qingjian Realty. The site has attracted a strong response from developers by the close of tender yesterday, but the highest bid has come from the Chinese developer.
The site is located in Bukit Batok West Avenue 6 and locates on 158,194sqf and its plot ratio is 3. According to the URA if a maximum gross floor area of 64,583sqf is dedicated for commercial use than the site can produce revenue of more than 400 residential units.
Though there was a dull property market over the past few years but this site has drawn the attention of many developers as the tender 11 bids from the developer. According to Mr. Nicholas Mak, executive director and head of research and consultancy at SLP International Property Consultants, the reason behind the concern and attention of developers is the mixed commercial-cum-residential nature of the site. Mr. Mak also disclosed that the developers want to reserve this site for the future master plan for the West region as many HBD housing projects are under development in this region.
Another advantage of the site is probably its location because it is well connected to other parts of Singapore through the Pan-Island Expressway (PIE) and the MRT Station of Bukit Batok is at the distance of 1km only. All other commercial places like polyclinic, market and food center, hospital, community clubs, a future civic and community institution development and West Mall are located near to the site which increases its importance as a residential site.
According to Mr. Li Jun, general manager, Qingjian Realty (South Pacific) Group Singapore government always wants to start exciting and progressive development plans for the Jurong district and Qingjian is a big supporter of government’s development so it is a good thing that Qingjian is the highest bidder for the Bukit Batok commercial and residential site. Qingjian has previously acquired a land for private housing development successfully this month, and it is the second successful land acquisition for private housing development in Singapore. According to a Chinese developer, Qingjian’s previous successful deal agreement was signed with the owners of Shunfu Ville worth S$638 million in last week, and he is planning to build about 500 condominium units for this future Bukit Batok condo.
The estimated prices for the residential space in the new cooperatives to be developed on the site is predicted to be ranging from S$920 psf to S$980 psf as the land price per plot ratio is approximately S$635 per sqf (psf). Developer might be able to enjoy good profit if the site is managed as shopping mall under a single ownership rather than to sell the retail space as strata units the developer.
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