SINGAPORE - A residential site at Sengkang West Way overlooking Punggol River has received an unexpectedly bullish top bid of $262.1 million in an eight-way contest which closed on Thursday.
The highest bid, which translates to about $489 per square foot (psf) per plot ratio (ppr) for the 178,723 sq ft plot, came from UOL Group's vehicle Secure Development.
The 99-year leasehold site is set to yield an estimated 555 units.
This was one of the first land tenders launched after the seventh round of cooling measures took effect on Jan 12 this year.
Analysts say this means it is a good indicator of the upbeat sentiment among developers.
The top bid exceeded analysts' expectations of $214 million to $241 million, or $400 to $450 psf ppr. The number of bids, at eight, was also at the top end of the four to eight that analysts had tipped.
Mr Liam Wee Sin, president of UOL's property division, said in a statement on Thursday that the site "has the potential to tap the upgrader demand in the north and north-east of Singapore".
He added that UOL intends to turn the site into a 20-storey development of about 600 residential units with a river fronting.
UOL's bid was 3.4 per cent more than the next highest bid of nearly $253.55 million or about $473 psf ppr from Bayfront Land, a joint venture between Fragrance Group and World Class Land.