Qingjian submits aggressive bid for Bukit Batok West site

[reporter2]

http://www.businesstimes.com.sg/real-estate/11-bids-received-for-commercial-and-residential-site-in-bukit-batok-west-ave-6

11 bids received for commercial and residential site in Bukit Batok West Ave 6

By Kalpana Rashiwala

[email protected]

@KalpanaBT

May 24, 2016


A 99-YEAR leasehold commercial and private residential site in Bukit Batok West Avenue 6 has garnered 11 bids at a state tender that closed on Tuesday,

The top bid, from a tie-up between Qingjian Realty (BBR) and Qingjian Realty (BBC), was S$301.16 million. This works out to S$634.57 per square foot of potential gross floor area. Allgreen Properties was the second highest bidder, at S$277.98 million or S$585.73 psf per plot ratio (psf ppr).

Also bidding at the tender, which was conducted by Urban Redevelopment Authority, were Wee Hur Development, China Construction (South Pacific) Development Co, CEL Real Estate Development and Low Keng Huat (Singapore). Sim Lian Land placed the lowest bid of S$188 million.

[reporter2]

http://www.straitstimes.com/business/11-bids-for-mixed-use-bukit-batok-site

11 bids for mixed-use Bukit Batok site

May 25, 2016

Marissa Lee


A site in Bukit Batok - the only mixed commercial and residential plot tender under the Government Land Sales programme for the first half of this year - has attracted 11 bids.

But while interest in the 14,696.7 sq m plot in Bukit Batok West Avenue 6 and near Bukit Batok MRT station was broad, analysts noted that some developers were more measured than others in their bidding.

Mr Desmond Sim, head of CBRE Research for Singapore and Southeast Asia, said: "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 SLP International executive director Nicholas Mak, 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, Mr Ong Teck Hui, JLL national research director, noted that 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, he said. The government did not sell any mixed development sites last year.

Mr Sim said: "At the moment, the built-up density in the surrounding areas is low, and bidders are probably looking to gain a first-mover advantage when this precinct starts to intensify through future developments (such as) the upcoming Jurong Innovation District."

If the site is awarded to Qingjian, it will be the developer's first mixed development project in Singapore, and its second successful land acquisition for private housing development this month.

Last week, Qingjian announced that it had entered into a sales and purchase agreement with the residents of Shunfu Ville, at a collective price of $638 million. Qingjian said in a statement that it expects to build about 500 condo units at the Bukit Batok site, which has a gross floor area of 44,091 sq m.

At a land price of $635 psf ppr, Mr Mak estimates the breakeven prices for the residential units will range from $920 to $980 psf.

He noted that there are few new 99-year leasehold private non-landed residential developments near the Bukit Batok site, but the median transacted prices of units in three such condominiums (Hills TwoOne, Hillsta, and Kingsford Hillview Peak) in the Bukit Batok planning area ranged from $1,199 to $1,326 psf in January to May last year.

[reporter2]

http://www.businesstimes.com.sg/real-estate/qingjian-submits-aggressive-bid-for-bukit-batok-west-site

Qingjian submits aggressive bid for Bukit Batok West site

Its bid of S$301.16m (S$634.57 psf ppr) was the highest in a field of 11 contenders. This is set to be the developer's first mixed-use project in Singapore

By Kalpana Rashiwala

[email protected]

@KalpanaBT

May 25, 2016


CHINESE developer Qingjian Realty seems to be on a roll. Fresh from clinching the Shunfu Ville en-bloc sale site in the Marymount area last week, it topped bids at Tuesday's state tender closing for a commercial-and-residential site in Bukit Batok West.

Its top bid of S$301.16 million or S$634.57 per square foot per plot ratio (psf ppr) was 8.3 per cent more than the next highest bid of S$277.98 million (S$585.73 psf ppr) from Robert Kuok's Allgreen Properties.

JLL national director Ong Teck Hui said this reflects "Qingjian's earnestness in securing the site by bidding more competitively than the rest".

The tender for the 1.5-hectare, 99-year leasehold land parcel in Bukit Batok West Avenue 6 drew 11 bids - considered a strong participation rate. Some consultants attributed this interest to the recent pick-up in developers' new-home sales.

As well, mixed-development projects tend to be well sought after by home buyers.

Desmond Sim, CBRE Research's head of Singapore and South-east Asia, said the overall cutback in state land sales and the dearth of land parcels for sale in the area gave developers additional reasons to bid for this site.

Qingjian Realty (South Pacific) Group's general manager Li Jun said one attraction was the site's proximity to the Jurong district, where the government has "exciting and progressive development plans".

The Business Times' check with www.onemap.sg showed that the site along Bukit Batok West Avenue 6 is at least 1.8 km from the Jurong Lake District and even further away from the Jurong Innovation District.

When the plot was launched in late March, property consultants had forecast that the top bid would range from S$520 to S$620 psf ppr, and expected the site to garner five to 10 bids.

The site is in a less-developed locale of Bukit Batok and not within walking distance of any MRT station.

Apart from Qingjian, the rest of the bidders at Tuesday's tender were relatively measured, "probably still mindful of the risks as the market remains challenging", noted Mr Ong.

City Developments and Hong Leong Holdings teamed up to offer nearly S$542 psf ppr for the parcel. GuocoLand priced the site at S$533 psf ppr; Chip Eng Seng, an experienced construction and property group, came in with a S$440 psf ppr offer.

Low Keng Huat bid S$411 psf ppr, which put Sim Lian Land at the bottom of the tender results table, with its bid of S$396 psf ppr.

Mr Li said Qingjian Realty expects to build a condo of about 500 units and a one-storey mall. The condo is likely to be launched for sale in a year.

Qingjian Group, which will handle the project's construction, said that this would be Qingjian Realty's first mixed-development project in Singapore.

Mr Ong of JLL expects that the launch price for the condo will be around S$1,100 psf on average.

The Urban Redevelopment Authority (URA) has stipulated the pre-fabricated pre-finished volumetric construction (PPVC) method for the residential component; this method, aimed at boosting productivity, costs more.

The URA has also stipulated a maximum 44,091 sq m (474,591 sq ft) gross floor area (GFA) for the project on the site; of this, the maximum commercial component will be 6,000 sq m (including a supermarket of at least 1,000 sq m and a food court of at least 500 sq m).

The commercial space has to be held in a single strata lot, that is, strata subdivision is not allowed.

In addition, the developer will have to build a child-care centre of at least 500 sq m, which is to form part of the development's common property.

[Arcachon]

They know something going to happen.

[TOKARA]

condo price at $1100psf so exp???