SINGAPORE - Tenders for two state-owned plots in Bukit Timah and Hillview closed on Thursday, drawing fewer bids than expected as developers adopt a cautious approach amid economic uncertainties.
Analysts said rising interest rates and the risk of a global recession in 2023 deterred some developers, even as their land banks are running low, although the top bids for the sites came within expectations.
At the close of the tender on Thursday, the Bukit Timah Link site had drawn five bids, while Hillview Rise drew four.
Both sites are expected to yield a total of 495 private homes.
The Bukit Timah Link site attracted a top bid of about $200 million, or $1,343 per sq ft per plot ratio (psf ppr), from Bukit One, a subsidiary of Bukit Sembawang Estates.
The smaller land size translates to a lower price quantum, meaning less risk for developers, said OrangeTee & Tie chief executive Steven Tan. “A shopping mall and transport hub will be built next to this project, which will be a strong selling point for the development,” he added.