Within two weeks last month, two foreign players committed a total of some $1.3 billion in real estate investment, putting a focus on their growing presence here.
Qingjian Realty accounted for the lion’s share with its $301.16 million for a Bukit Batok plot and $638 million for the Shunfu Ville en bloc site. The Chinese developer is expected to pay another $123 million in differential premium for intensifying land use and $94 million to top up the en bloc site’s lease. Around the same time came news that a unit of Hong Kong-listed conglomerate Shun Tak Holdings has bought a Cuscaden Road bungalow for $145 million.
Qingjian’s latest project is the 632-unit The Visionaire EC in Sembawang, which is about 30 per cent sold since it was launched in April. Upcoming executive condo include Treasure Crest and Northwave EC while existing ones include The Terrace EC, Brownstone EC, The Visionaire EC, Parc Life EC , Waterwoods EC, Signature at Yishun, Skypark Residences, Wandervale EC, The Vales EC, The Criterion EC, Bellewaters EC, Bellewoods EC.
Analysts say the deals underscore a trend of foreign players participating more in real estate development and land tenders here.
SLP International Property Consultants said foreign participation in land tenders here likely spiked in 2011. Its executive director Nicholas Mak said: “In terms of land acquisition, whether private or government land, the foreign developers tend to be more active here when the market is hot. For example, the percentage of Government Land Sales residential sites bought by foreign developers increased from zero in 2009 to 38 per cent in 2011 when the market was very bullish.”
Analysts say the presence of foreign players here gives healthy competition to local developers and, in some cases, help to raise standards.