Update | Chinese developers submit another record bid for land, this time in Singapore
Chinese developers, which have been snapping up land parcels in Hong Kong at record prices in the past 18 months, are now extending their reach to Singapore.
Chinese developers are continuing their aggressive overseas shopping spree with two firms jointly snapping up a land plot in Singapore for S$1 billion (US$720 million), setting a new record for the island-state.
Hong Kong-listed Shenzhen developer Logan Property Holdings and Shandong-based Nanshan Group beat 12 other bidders in a government land sale to jointly win a 954,000 square foot plot on Stirling Road, according to a statement from Singapore’s Urban Redevelopment Authority on Thursday.
It is the first time a residential site reached the S$1 billion mark in the history of the Government Land Sales (GLS) Programme in Singapore. The price is equivalent to S$1,051 per square foot.
“The investment is in line with our overseas expansion strategy and the price is reasonable,” Lai Zhuobin, chief financial officer at Logan, told the South China Morning Post.
Stirling Road will be Logan’s first project outside Greater China and comes just three months after it partnered with another Chinese developer KWG Property to pay HK$16.86 billion for a plot in Ap Lei Chau island, Hong Kong. That price translated to HK$22,118 per square foot, the most expensive residential site purchased in Hong Kong’s history.