billion mark,” said Christine Li, director of research for Singapore at Cushman & Wakefield. “The participation from 13 local and foreign developers shows the sheer amount of liquidity in the market as S$11 billion is going after a plum site.”
Hunger for Singapore land is adding to signs the city’s housing market is making a comeback after three years of declining prices.
With new sales surging after an easing of property restrictions in March, developers are becoming more aggressive in bidding at land auctions.
On average, they have paid a 29 per cent premium, the highest level in at least five years, according to Cushman & Wakefield.
“The strong bid and healthy local participation reflects developers’ optimism on Singapore residential property,” said UOB Kay Hian Pte analysts Vikrant Pandey and Derek Chang in a note.
They expect housing prices to move in line with gross domestic product growth of two to four per cent next year.
The top bid came from a joint venture between Logan Property Holdings Co, a Hong Kong-listed developer which has developments in Shenzhen and the Pearl River Delta region, and China’s Nanshan Group. Bloomberg