City Developments Ltd. (CDL) – controlled by billionaire Kwek Leng Beng – has submitted the highest bid for a residential plot in Bukit Batok, western Singapore, as the property giant replenishes its land bank amid continued strong demand for property in the city despite rising interest rates and slowing economic growth.
CDL’s wholly-owned subsidiary Zenith has offered to buy the 178,936 sq ft (16,623 sq m) site for S$336 million (US$239 million), the highest bid received by the government for a 99-year lease on the property. If the Housing and Development Board grants a CDL, it plans to build 10 blocks of 12- to 13-story apartment buildings with a total of 510 residential units on the property.
The Bukit Batok site is conveniently located near the existing Bukit Gombak MRT and two upcoming stations on the North-South line, due for completion in 2028. City Developments is developing the 639-unit Copen Grand condominium project in nearby Tengah Garden Walk, which is expected to be put on sale later this year.
“As the site is close to the upcoming Tengah New Town and the Jurong Lake District, it will benefit from easy access to a wide range of amenities as well as good connectivity to such a key business, lifestyle and tourism hub,” Sherman Kwek, Group CEO of City Developments , he said in a statement. “We look forward to transforming this extensive site into a sustainably designed and well-built residential landmark.”
City Developments is adding to its land bank after seeing strong demand for its projects in Singapore, which is defying a global property slump that has sent property prices plummeting in Australia and China as central banks around the world tighten monetary policy to curb runaway inflation.
In May, CDL and partner Hongkong Land unit MCL Land sold 315 of the 407 residential units at Piccadilly Grand on Northumberland Road, about four kilometers east of the central business district.
Suburban projects by competing developers also recorded strong sales. In July, billionaire Wee Cho Yaw’s UOL Group sold almost all 372 units at AMO Residences in Ang Mo Kio, central Singapore, during the project’s weekend launch. Last week, billionaire Charoen Sirivadhanabhakdi’s Frasers Property sold 75% of the 158 residential units at Sky [email protected] in the eastern part of the city-state.