SG Morning Highlights | Latest Tender Results Show Caution Among Developers For Big Sites Amid Heightened Risks

Advancers / Decliners is 96 to 35, with 85.51 million securities worth S$86.68 million changing hands.

State land tender closings for three 99-year leasehold sites on Tuesday (Jun 27) reflect cautious sentiment among developers for biggish sites, which entail higher risks. These include cooling measures, a reduction in saleable area for non-landed residential projects due to changes in definitions of floor area, and continuing high interest rates and construction costs.

On offer at Tuesday's tenders were the maiden residential plot in Marina South; and a commercial and residential site in Tampines Avenue 11 that will be integrated with a bus interchange, community club, hawker centre and the future Tampines North MRT station on the Cross Island Line.

The third offering was an executive condominium site in Plantation Close between two future MRT stations on the Jurong Region Line. The plot, which can generate about 500 homes, drew nine submissions, reflecting the positive outlook for this segment, which is least affected by the additional buyer's stamp duty (ABSD) hikes rolled out in the April property cooling measures. The ABSD increase is aimed primarily at foreign buyers and local investors.

An executive condominium (EC) site at Plantation Close in Tengah drew strong interest from developers, with nine bids received on Tuesday (Jun 27).

Bids came from entities linked to heavyweights City Developments Ltd, Hong Leong, CapitaLand Development and Frasers Property.

The parcel also saw interest from Hoi Hup Realty and Sunway Developments, Qingjian Group, Sim Lian Group, a consortium including Evia Real Estate, and another led by Kingsford, which had on the same day put in the top bid of S$1.03 billion for a prime site in Marina South.

These four units control a landbank of around 67,000 ha and are primarily in crop farming and milk production. Citing an estimate from a valuer, Don Agro says these four entities are valued at $106.4 million.

The buyer, Agroinvest Group controls a total landbank of more than 450,000 ha, and is not a subject of sanctions and is an independent third party, says Don Agro.

Sabana REIT has received a requisition letter from Quarz Capital, requesting for an extraordinary general meeting (EGM).

Several ordinary resolutions have been proposed for the EGM, including ones that would result in an internalisation of the REIT's manager.