Bookmark & Share
The commercial and residential site at Bukit Batok West Avenue 6 which was released for tender on 30 March received a top bid of S$301.16 million at the close of its tender on Tuesday (24 May), the Urban Redevelopment Authority (URA) revealed.
Qingjian Realty posted the top bid which translates to a sale price of S$634.5 per sq ft (S$6,830.41 per sq m) based on the maximum permissible gross floor area (GFA) of 474,595 sq ft (44,091 sq m). The site received a total of 11 bids, with the lowest tender price at S$188 million or S$396.13 per sq ft (S$4,263.91 per sq m).
“As expected, interest in the site was keen as shown by the 11 bids,” said CBRE Research, Singapore and Southeast Asia head Desmond Sim. “Interest in mixed-use projects has been [increasing], on the back of the successful take-up in mixed-use developments launched recently. The cut-back in land sales and the [lack of] land parcels for sale in the area gave bidders additional reasons to bid for the land.”
He noted, however, the difference in each developer’s market outlook and appetite, citing the wide margin in bid pricing of up to 60 percent.
“At the moment, the built up density in the surrounding areas is low; the bidders are probably looking to gain a first-mover advantage to develop a viable alternative to the existing developments nearby or when this precinct starts to intensify through future developments,” Sim said.
The commercial and residential site at Bukit Batok West Avenue 6.
Meanwhile, according to URA, the site can potentially yield about 425 residential units and a maximum GFA of 6,000 sq m will be stipulated for commercial use.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
Related Articles:
Pioneer Road industrial site up for sale
Freehold site along Thomson Road up for sale
Hotel redevelopment site at Cuscaden Road sells for S$145mil