Mainland Chinese Nanshan Group submitted the highest bid for the government land site on Lorong Puntong, at the corner of Upper Thomson Road and Sin Ming Avenue at the close of the tender on Oct 7. The bid was $173.57 million, which translates into $731 psf per plot ratio. The 103,052 sq ft, 99-year leasehold site could be developed into a 280-unit private condo. A total of 18 bids were received for this hotly contested plot, the highest this year.

The site is also located near Thomson Three, jointly developed by UOL Group and UIC, where 413 out of a total of 445 units, or 93% of the development, have been sold at a median price of $1,403 psf, according to Eugene Lim, key executive officer of ERA Realty.

The plot drew bidders owing to its relatively small size, and therefore absolute price of under $200 million, comments Desmond Sim, head of CBRE Research Singapore. “It also presents a good opportunity for a new player to put in a competitive bid to enter the market,” he adds.

This article appeared in the City & Country of Issue 647 (Oct 13) of The Edge Singapore.