A large residential site in Sims Drive had reeled in only four bids when the tender closed yesterday
, with a top bid deemed cautious by most experts.Still, some other market watchers felt the top bid was bullish given current weak conditions.
With a maximum gross floor area of 771,775 sq ft, analysts said the parcel was the largest to hit the market in two years.
They said some developers were likely to have been deterred by the huge cost of developing it.
The 99-year leasehold plot spans 257,258 sq ft, and can yield about 900 units.
The top bid came from Malaysian-controlled developer GuocoLand, which beat the competition with a price of $530.9 million, or $688 per sq ft (psf) per plot ratio (ppr). This was 5.8 per cent more than the second-highest offer of $502 million – or $650 psf ppr – from a tie-up between City Developments, Hong Leong Group and TID Residential.
