The first land sold in Singapore’s Marina Bay in nine years fetched a record price for a government land sale, with a Malaysian-led group bidding S$2.6 billion ($1.9 billion).
The price is equivalent to S$1,689 per square foot of gross floor area, topping the S$1,409 per square foot paid in 2007 for the Asia Square Tower 1 site, according to CBRE Group Inc.
The top bid is a very bullish call on the Singapore office market. All the bids are higher than the market expectations of between S$1.3 billion and S$1.8 billion, which is a reflection of the steady restoration of investors’ confidence in the office market.
Christine Li, director of research at Cushman & Wakefield Inc. in Singapore.