Joint bid from HK’s Logan Property, China’s Nanshan wins Stirling Road residential site
A residential plot in Singapore may fetch a record price for a government land sale, with a Chinese consortium putting in the highest bid at S$1 billion ($718 million).
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 home sales surging after an easing of property restrictions in March, developers are becoming more aggressive in bidding at land auctions. On average, they’ve paid a 29 percent 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,” UOB Kay Hian Pte. analysts Vikrant Pandey and Derek Chang said in a note. They expect housing prices to move in line with GDP growth of 2 percent to 4 percent in 2018, after bottoming out this year at about 15 percent to 20 percent below the peak set in the third quarter of 2013.
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. Nanshan has been active in Singapore’s government land auctions, participating in eight of 11 tenders in the past 12 months, according to Cushman & Wakefield.
“The winning bid is an anticipatory one — looking forward to a possible tweak of measures in the pipeline or some form of market recovery,” said Desmond Sim, head of research for Singapore and South East Asia at CBRE Group Inc.
Logan Property shares rose 2.2 percent as of 10:36 a.m. in Hong Kong, taking this year’s gain to 45 percent.
MCL Land (Everbright) Pte. was the second-highest bidder at S$925.7 million.
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