Mixed-use sites draw strong developer interest amid market downturn

A site in Bukit Batok drew 11 bids.

Developers are bidding aggressively for mixed-use sites despite weak residential sales on back of stringent cooling measures. A site in Bukit Batok drew 11 bids when it was launched for sale last week, which analysts say is a testament to developers’ hunger for land.

“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,” said Desmond Sim, Head, CBRE Research, Singapore and South East Asia.

The 99-year leasehold site was released from the Confirmed List of the Government Land Sales (GLS) programme for the first half of this year. It has a total area of 158,194 square feet and can potentially yield more than 400 residential units, with a maximum gross floor area of 64,583sqf stipulated for commercial use, according to the Urban Redevelopment Authority (URA).

“The site’s proximity to the upcoming Jurong Innovation District (JID) probably also played a major part in garnering interest. The JID will create employment clusters in the surrounding areas including this site while those working in the JID might find it attractive to either lease a residential unit or buy an apartment,” Sim added.

Chinese developer Qingjian Realty tendered the highest bid of $301.2 million, followed by $277.98 million by Allgreen Realty.

“Interest in mixed-use projects has been on the increase, on the back of the successful take-up in mixed-use developments launched recently. The cut-back in land sales and the dearth in land parcels for sale in the area gave bidders additional reasons to bid for the land,”​ Sim noted.