Chart of the day: Check out soaring number of bids for government land tenders

Average bids YTD sit at 10 for non-landed homes and ECs.

There has been an uptrend in the number of bids for Government Land Sales (GLS) launches this year, as developers aggressively submit their prices to acquire land sites.

According to a report by Maybank Kim Eng, average bids for private non-landed homes stayed at 10, while bids for executive condominium sites rose from 7 to 10 this year so far.

However, the report noted that land prices has soared as developers locked horns.

"Fierce competition has led to escalating land prices this year, arising from limited land-banking options as the government scales back GLS launches this year," the report noted.

Maybank noted that the highest bid for Sengkang site, which sits at $287 million, was 17% above comparable site nearby sold in August 2014.

The report also took note that a similar trend can be observed in EC markets, with prices soaring 16%-25% higher than last year.

"We expect continued keen interest in the remaining three residential land parcels for launch in the next few months," the report claimed.