(Bloomberg) — Singapore has rejected a bid for a prime parcel of state-owned land for the first time in more than a decade, deeming it too low.
The Urban Redevelopment Authority has rejected a single S$770 million ($573 million) bid from a consortium led by local developer GuocoLand Ltd., it said in a statement on Thursday. Officials said the offer was “rated too low.”
Offers for the Marina Gardens Crescent site, located in the central business district near major tourist attractions, were nearly 30% lower per square foot than another nearby site sold last year. This suggests developers are growing cautious about the outlook for the city’s real estate market, which has shown signs of cooling in recent months.
Nicholas Mack, chief research officer at real estate portal site Mogul S.G., said, “This bid was a bit opportunistic and pessimistic, believing that prices would fall, but the government was trying to determine whether real estate values would be maintained. “I have a different view that it will rise.” “The government is indirectly sending a signal to the market not to lowball.”
The site will now be available on a so-called “reserve list,” allowing interested bidders to bid at the lowest price acceptable to the government.
GuocoLand did not immediately respond to an email seeking comment.
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Rejection of land bids in city-states is rare, but not unheard of. The last major rejection under the Singapore Government Land Sale Program, which releases state-owned land for development, was in 2011, when URA rejected a joint proposal from UOL Group Ltd. and Singapore Land Group Ltd. for a business plot. did. Most recently, authorities rejected a single offer for a site in the north of the city in 2020 for the specific purpose of building a dementia care village.
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