The Government Land Sales program only had one site zoned for mixed commercial and residential released to tender in Q1 2016. The site located in Bukit Batok was fiercely contested, attracting eleven bids from interested parties. As anticipated, Bukit Batok site’s location in West Avenue 6 and close to the Bukit Batok MRT station stimulated broad interest, as did its the 14,696.7 sq m size. However, analysts observed some developers adopted a more conservative bid strategy than others. Le Quest have the Live Play and Dine Concept which is a mix development condo at Bukit Batok by Qingjian Realty

Le Quest Live Play Dine Concept Bukit Batok

As head of CBRE Research for Singapore and Southeast Asia, Mr. Desmond Sim commented, “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 percent.” The tender closed on May 24th, 2016 and achieved a top bid of $301 million, yielding $635 per square foot per plot ratio (psf ppr). Qingjian Realty (South Pacific) Group lodged the high bid a spokesman for the Urban Redevelopment Authority confirmed. The high bid was a slender 8.3 percent above the bid by Allgreen Properties the second-highest bidder. Le Quest Condo is the development name with a Live Play and Dine Concept.

Le Quest Live Play and Dine Mix Development

Nicholas Mak, SLP International executive director observed the Qingjian Realty bid was pitched 5.7 percent below than the winning April 2011 bid for a comparable parcel of land located in Hillview Avenue, site of The Hillier condo. “Many of the bidders were mindful of the current market conditions and submitted fairly conservative bids,” Mak concluded. The Qingjian Realty price was also 21.2 percent below the top bid for the Hillion Residences condo site in Jelebu Road sold at tender in November 2011.

Le Quest Singapore Qingjian Realty

Despite these shifts in market pricing, JLL national research director Mr. Ong Teck Hui, observed that Qingjian’s $635 psf ppr sat at the “high end of bid expectations”. With the government failing to release any mixed development sites last year, and the propensity of mixed developments to attract firm demand from prospective homebuyers, the scene was set for a solid tender result, particularly in light of buoyant new-home sales in the months leading up to the tender.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 Qingjian is successful in securing the site, it will Qing Jian’s second successful land acquisition for private housing development in May and its first mixed development project in Singapore.