SINGAPORE - A fiercely-fought tender involving 10 developers for a plot at Tampines Avenue 10 has stunned the market at its close on Tuesday, with a top bid of $289.7 million.
Analysts said that the competition for the 17,102.9 sq m plot was unexpected given the new rules to prevent borrowers looking to sign new mortgages from over-extending themselves.
The top bid for the plot designated for residential development was from Chinese developer MCC Land, whose bid translates into a price of $562 per sq ft (psf) per plot ratio (ppr).
This was 7.6 per cent more than the next highest bid submitted by a tie-up between UOL Venture Investments and Kheng Leong Company - at $522 psf ppr.
Jones Lang LaSalle's national director of research and consultancy Ong Teck Hui said that the top bid for the 99-year leasehold site was "way above expectations".
He noted that that it was 34 per cent higher than an adjacent site sold in May last year, where Far East Organisation's Q Bay is now being built.
The tender outcome indicated that developers remain confident of underlying robust demand, despite the latest lending rules imposed by the Monetary Authority of Singapore, Mr Ong added.