SINGAPORE - A sizeable land plot at Stirling Road has received a top bid of more than S$1 billion.
The tender for the 99-year leasehold plot closed on Thursday (May 18), with the top bid coming from a joint effort between Hong Kong's Logan Property and Chinese developer, Nanshan Group.
It bid slightly more than S$1 billion for the 21,190 sq m site, translating to a price of S$1,050 per square per plot ratio.
This was slightly above analysts' expectations of between S$780 and S$1,000 psf, suggesting developers' optimism about the property market.
There were 13 bids for the Queenstown site, which is expected to yield an estimated 1,110 units.
Dr Lee Nai Jia, head of South-east Asia research at Edmund Tie and Company, said that he expected the break even price for the site to come in at about S$1,600 and S$1,700 psf ppr.
However, he said that while the bid may seem bullish, the price is actually reasonable, due to the location of the land parcel.
"While there are other developments in the area, most of them would have sold their units by the time this new project is launched."
He added that with improved sentiment, he expected stronger bids in upcoming launches of government land sales sites.