S$1 billion tender for a new site near Queenstown MRT Station sets the record for Government Land Sales (GLS) programme residential tender.
The Stirling Road land parcel was on the GLS programme Reserve List in Mar, 2010. It was finally launched for public tender in April 2017.
This 99-year leasehold plot with a land area of 227,221 square feet (sqft) comes with a gross plot ratio of 4.2 which gives it a maximum permissible gross floor area (GFA) of 954,327 sqft. This can yield approximately 1,110 private residential homes.
On Thur 18 May 2017, the highest bid of S$1.003 billion was submitted jointly by China’s Nanshan Group and Hong Kong’s Logan Property. The top bid translates to S$1,050.71 per square foot per plot ratio (psf ppr).
A total of 13 bidders took part in this public tender consisting of consortiums or large developers as the Stirling Road site was huge which needed larger finances in order to bid for this tender.
Nanshan has already been taking part in the Singapore property market recent public tenders but it is Logan’s maiden entry into our local property scene. A recent new condo launch, Thomson Impressions is by Nanshan Group. The combined bid of Nanshan and Logan at S$1,050.71 psf ppr is 8.3% than the next highest ranking bid of S$970 psf ppr from MCL Land. MCL Land had won a bid for the Margaret Drive site located in the vicinity at S$998 psf ppr in Dec 2017.
According to real estates experts, it is uncommon for residential sites to go beyond $1,000 psf ppr. Despite the fact that the Stirling Road site is 4 times the size of the Margaret Drive site, the new bids show that developers have confidence in the Singapore property market and believe that prices have growth potential.
Good sales results from new launches in the vicinity such as Commonwealth Towers, Queens Peak, Alex Residences and Principal Garden coupled with the recent tweaking of the Seller’s Stamp Duty (SSD) have boosted confidence of the bidders.