SINGAPORE (Dec 19): Chiwayland International has been awarded the tender for a land measuring 2,878 square metres in Australia, with a purchase price of A$27 million ($28.8 million).

Chiwayland told SGX this evening that it won the tender through its wholly-owned subsidiary, Chiwayland Australia Pte Ltd (CAPL).

The land is situated at 14, 16, 18 and 20 Parkes Street, Parramatta, New South Wales 2150, Australia and to be re-developed into residential units.

"An initial deposit of 10% of the purchase price has been paid and the balance 90% is payable within six months of the award," the property developer said.

Commenting on the award, Chiwayland's Executive Chairman and Chief Executive Officer Qian Jianrong said this marked a significant milestone in their overseas expansion into Australia.

"With this piece of land, Chiwayland can potentially develop our first property development project in New South Wales. In fact, we have been scouting for potential sites in Australia for some time as we see good demand for homes in the key cities," Qian added.

"We are pleased to have been awarded this piece of land, as we believe it would enhance our presence in Australia," Qian said.

Qian said the group is committed in building quality property projects in key cities in China and overseas and will continue to capitalize on rising opportunities as the group forge ahead with its regional plans.

"Demand for property in Australia remains strong, supported by a stable economy, the low interest rate environment, demand from foreign investors and interstate migration.

"In the state of New South Wales, demand for housing in the inner city as well as in the suburban areas of Sydney remain robust as the city's population continues to grow," he added.

As the group is expanding its overseas portfolio, it has been scouting for potential sites in Sydney -- Parramatta, a major business district in the metropolitan area of Sydney.

Currently, Chiwayland has an existing 50-50 joint venture with Property Solutions Pte Ltd to jointly develop three property development projects in Brisbane, Queensland, Australia.

With a property development project in Sydney, the group is positioned to continue to expand its presence in Australia and ride on the demand for Australian properties, especially from Chinese buyers.

Shares of Chiwayland closed unchanged at 20 cents giving it a market capitalisation of $133.37 million.

The Edge Research rated the stock's fundamental at 0.75, valuation at 0.6 while volatility score at 4.

Fundamental rating is refers to the strength of the company's balance sheet while valuation rating refers to the value of the stock in the capital market.

Volatility of a stock is based on its share price movements relative to the whole market over a period, on a scale of 1 to 5, 1 being the least volatile.