The hotel development site at Havelock Road has attracted nine valid bids at the close of tender on Tuesday.
The Urban Redevelopment Authority said the top bid of S$30.09 million was submitted by I Hotel.
This translates to a record land price of S$1,303 per square foot per plot ratio (psf ppr).
The next three highest bids also reflect bullish sentiment with submissions ranging from S$26 million to S$28 million dollars.
Experts say the aggressive bids could be due to the small price quantum required for this site.
They highlight that there are very few hotel sites near the central business district that are priced less than S$40 million.
Parts of the original building must be conserved as part of the development.
The land tenure is 60 years, which is shorter than the usual 99 years for other government land sales hotel sites.
Analysts say this site could yield about 35 hotel rooms.
Source : Channel NewsAsia – 13 Nov 2013