Analysts are expecting keen competition for a mixed residential and commercial site in Bukit Batok – the first site put up for sale in the area in several years.
The 99-year-leasehold site in Bukit Batok West Avenue 6 was launched for sale by public tender yesterday by the Urban Redevelopment Authority (URA).
The 14,696.7 sq m plot could yield about 425 residential units and up to 6,000 sq m of gross floor area of commercial space, URA said in a statement.
It is one of four confirmed list sites under the Government Land Sales programme for the first half of this year.
The site is about 1km from Bukit Batok MRT station, and not far from amenities such as Millennia Institute, Bukit Batok Polyclinic and West Mall. Analysts told The Straits Times the site could garner much interest from developers and investors.
“We expect keen competition for the mixed site in Bukit Batok West Avenue 6 as there have not been any land sites that were launched for sale in Bukit Batok in the last three to four years,” said real estate agency PropNex key executive officer Lim Yong Hock.
Mr Lim added that the upcoming high-speed rail terminus in Jurong East and the transformation of the Jurong Gateway business precinct could also have a “positive spillover effect” on Bukit Batok, which is near Jurong.
Cushman & Wakefield research director Christine Li said the upcoming development of Jurong Innovation District – announced in Budget 2016 – is another draw. The district, envisioned as an industrial park of the future, will be built as part of the Government’s push to encourage innovation.
Analysts estimate the site tender to attract up to eight or 10 bids.
“The top winning bid could range between $570 and $620 psf per plot ratio… The developer could be selling the residential units from $1,150 to $1,200 psf onwards,” Ms Li added.
JLL national director for research and consultancy Ong Teck Hui expects residential units to be priced at about $1,000 psf, with a bid price of $530 to $610 psf per plot ratio.
“There should be keen interest from HDB upgraders, including those in Bukit Batok new town, as the selling price could be close to entry level for private homes.”
The tender will close on May 24.
[Source: The Straits Times]