Business

Record-breaking bid for land parcel in Queenstown

History has been made with a land parcel for homes in Queenstown fetching a bid above $1 billion - smashing the old record by more than $300 million.

It is the first time a purely-residential site in the Government Land Sales (GLS) programme has crossed the billion-dollar mark.

China-based developers Logan Property and Nanshan Group put in the top bid of $1.003 billion for the 21,109 sq m site in Stirling Road.

The bid was 8.3 per cent higher than the second highest bid of $925.7 million from MCL Land.

The previous record for a residential site was $682.8 million, paid in 1997 for the site since developed into Costa Del Sol condominium.

The sizeable Queenstown plot is the amalgamation of two adjoining sites, and had been on the GLS reserve list since March 2010. It was triggered for sale in April after a developer committed to bidding at least $685.25 million for the site.

Based on a maximum permissible gross floor area of 954,328 sq ft, the top bid in a field of 13 translates to a price of $1,050 per sq ft (psf) per plot ratio. This is slightly above analysts' expectations of bids between $830 and $1,000 psf.

The Urban Redevelopment Authority will announce the successful bid at a later date.

Dr Lee Nai Jia, head of South-east Asia research at Edmund Tie and Company, said the price of the bid was reasonable, given its excellent location.

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