Average number of public land bids almost double to 14 in 2017

Average price also grew 42% to $925 psf ppr within 2014 to 2017.

Developers have paid substantial premiums for sites amidst aggressive bidding at public land tenders, Colliers International revealed.

According to a report, on average, the number of bids received for each Government Land Sales (GLS) residential tender has risen from eight in 2014 to 14 in January to November 2017.

The average price has also increased by 42% from $650 to $925 psf ppr between 2014 and 2017, assuming the minimum trigger land price of $1,250 psf ppr for Jiak Kim Street and $1,250 psf ppr for Fourth Avenue.

Excluding the tenders for Jiak Kim Street and Fourth Avenue sites which will close on 5 December, the increase in average GLS land prices would have been 30% over 2014-2017.

Here's more from Colliers International:

A study of two comparable sites which have been tendered in 2015 and 2017 reflected a 17% to 21% rise in land prices.

Queenstown MRT: the massive Stirling Road site tendered for $1,051 psf ppr in May 2017 was 21% more than the $871 psf ppr paid for Queens Peak site in June 2015.

Tampines Ave 10 site: the latest site won by City Developments for $565 psf ppr in May 2017 was 17% more than the $483 psf ppr paid by MCC Land for The Alps Residences in May 2015.

Colliers International head of research Tricia Song adds, “The GLS tenders will likely continue to draw strong bidding interest from both local and foreign players, in view of the more positive economic outlook and market sentiment. We expect developers to adjust their bids according to market dynamics and future land prices may not necessarily rise at the same pace that we have witnessed in the past year.”