A total of 11 bids were received at the close of the public tender on May 24 for the 99-year leasehold Bukit Batok West Ave 6 site. The winning bid came from mainland Chinese developer Qingjian Realty with an offer of $301 million, or about $635 psf ppr for the 99-year leasehold parcel. Qingjian’s bid was 7.7% above the next highest bid of $278 million, or $584 psf ppr by Allgreen Properties.

Qingjian is likely to build a new mixed-use development with a 500-unit condominium on the Bukit Batok site. “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,” says Desmond Sim, head of research at CBRE.

Qingjian Realty’s aggressive bid came on the back its successful en bloc purchase of Shunfu Ville on Marymount Road for $638 million just a week earlier on May 20. The price for the site translates to $747 psf ppr after factoring in the differential premium payable to the State to top up the lease to a fresh 99 years and for intensification of site. The site can be redeveloped into a new private condo with more than 1,000 units.