Chinese Developer pour in S$1B bid for Queenstown GLS site

A huge residential plot at Stirling Road launched by the government drew a record price of over S$1 billion in a joint bid from Logan Property Holdings (LPH)and Chinese conglomerate Nanshan Group. LPH is a new Hong Kong-listed entrant to Singapore market, originating from China’s Guangdong province

The bid of S$1,050.7 per square foot per plot ratio (psf ppr) on gross floor area is very bullish for for the 99-year-leasehold site thus setting a new record in the Queenstown area.

The site – despite its 2.11-ha size and heavy financial commitment required – saw a healthy demand of 13 bidders in total. The 227,000 sq ft plot near Queenstown MRT Station is expected to yield 1,110 units with prices projecting from S$1,700 psf upwards.

This bid signals a determination to enter the Singapore market. The top bid by the Chinese consortium is 8.3 % higher than the next highest bid tabled by MCL Land, and is 20.6 % higher than the S$871 psf ppr that MCC Land paid in June 2015 for the land parcel for Queens Peak. Competition was fairly stiff with close to half of the tenderers bidding in excess of S$900 psf ppr for the site, she added.

LPH has been studying the Singapore market for a while and believes “this is the right time to enter Singapore”.

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Queenstown site bid signals positive market sentiment

A large residential site in Queenstown able to yield about 1,110 units has been triggered for sale, in a sign of improving market sentiment. A developer committed to bid at least $685.25 million for a 2.11ha Stirling Road site. The site has been on the Government Land Sales reserve list since March 2010, which was made up of two adjacent sites once offered separately but merged into one site in 2012.

The 99-year leasehold site is next to Tiong Ghee Temple and near Anchorpoint shopping centre. As it is one of the larger sites on offer, analysts said the bid reflected better market sentiment, and developers’ growing appetite for residential land.

Many developers are running low on land and have to demonstrate that they have longer- term corporate growth strategies.Being a prime city-fringe site, it is also likely to generate much interest and attract buyers easily. Competitive bidding are expected.

Based on a maximum permissible gross floor area of 954,328 sq ft, the bid translates to a price of $718 per sq ft (psf) per plot ratio. Bids are expected to climb further, to between $830 psf and $950 psf.

It is noted though of unsold supply in Commonwealth Towers, Queens Peak and an upcoming project in Margaret Drive. The pricing will likely take a cue from Queens Peak, with an average of $1,640 psf, and Commonwealth Towers, at an average of $1,654 psf.