The first sale of land in Singapore’s Marina Bay in nine years generated healthy bidding from developers, with a plot in the sought-after financial district attracting a top bid of S$2.6 billion ($1.9 billion).
The offer price, equivalent to S$1,689 per square foot of gross floor area, is a record for a Singapore government land sale, exceeding the earlier highest price set in 2007 when the Asia Square Tower 1 site was sold for S$1,409 per square foot, according to CBRE Group Inc.
“The top bid is a very bullish call on the Singapore office market,” said Christine Li, director of research at Cushman & Wakefield Inc. in Singapore. “All the bids are higher than the market expectations of between S$1.3 billion and S$1.8 billion, which is a reflection of the steady restoration of investors’ confidence in the office market.”
An unidentified buyer committed to bid the reserve price of S$1.54 billion, or S$1,010 per square foot of gross floor area, the Urban Redevelopment Authority said Aug. 30. The site can be developed primarily for office use, with a smaller area reserved for residential housing, a hotel or serviced apartments.