Property News · September 5, 2016

Record-breaking land bids expected in Singapore’s Marina Bay


Fierce jostling ahead for the first Marina Bay land sale in almost a decade
Marina Bay, Singapore. The area will have its first land auction in nine years. leungchopan / Shutterstock
Competition in the auction of a mixed-use site in Singapore’s Marina Bay area will be so fierce that “bumper price” bids are reportedly in the pipeline.
Citing data from Cushman & Wakefield, Bloomberg reports that the parcel could be sold for more than SGD1.8 billion (USD1.3 billion), approximating the record set by the sale of the Asia Square Tower 1 land for SGD2.02 billion (USD1.5 billion) in 2007.
Already, an unnamed buyer has committed to the reserve price of SGD1.54 billion (USD1.1 billion), the Urban Redevelopment Authority revealed last week.
More: Developers in Singapore are fighting over this plot of land
Closing on 8 November, the auction for the 1.1 hectare parcel will be the first in nine years for Singapore’s iconic bayside area. The lot, located next to the Asia Square building which Qatar’s sovereign wealth fund acquired from BlackRock for SGD3.4 billion (USD2.5 billion) in Asia’s largest single-tower real estate deal, is primarily for office use, although areas are allotted for residential, hotel, and serviced apartment projects.
Christine Li, director of research at Cushman & Wakefield Singapore, told Bloomberg that the plot will be “hotly contested” and draw “sovereign wealth funds and aggressive bids from Chinese developers.” One of the likeliest bidders will be residential property firm City Developments Ltd, she added.
The Singaporean government opened up the plot for sale in anticipation of a dearth in office supply. “Come 2019, 2020 and 2021 there will be zero office supply,” said Hsueh Ling Ng, chief executive officer of Keppel REIT, “and there has never been such a thing in Singapore’s history where there are three years of zero supply.”
Read next: How has Singapore’s real estate market changed in 51 years?

Source : property-report.com
Read more…Record-breaking land bids expected in Singapore’s Marina Bay

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