Analysts pointed out that the expected sales foot price of the developments on these three lots ranges from $2,300 to $2,550, which is higher than the current price of new private homes, indicating that private home prices may continue to rise.

The Clementi lot attracted six bidders and the highest bid set a new high for the area, while the response to the bids for the Toa Payoh Lane 1 and Pinewood B lots was relatively lukewarm.

For the Clementi lot, a consortium formed by developer CSC Land and MCL Properties' Caspian Residential 3 bid $633.45 million, equivalent to a plot ratio of $1,250 per square foot, which is a record high for the area.

Jones Lang LaSalle's (JLL) head of private residential market research, Xie Xiu Jun, said the move shows the potential of the Clementi market segment and the need to refill development lots in the area. She expects to see investor interest in projects developed on the site, with sales feet priced at around $2,400.

In contrast, bidding for lots in Toa Payoh Lane 1 and Pinewood B was relatively lukewarm, but the highest bids were still higher than market expectations, showing how favourably some developers view these lots.

A consortium led by City Development (CDL) bid $968 million, equivalent to a foot price of $1,360, which was 13 per cent higher than the market's expectation and set a new high for the Toa Payoh area. On the other hand, the foot price bid for Pinewood B was about 7 per cent lower than that of the neighbouring Pinewood A lot.

Overall, the bidding results for these lots show how favourable the market is for the area's property market, and reflect developers' expectations for the future trend of the property market.

According to expert forecasts, projects developed on these lots will be launched between 2024 and the first half of 2025 and come down to new mass-market private homes priced about 10 to 15 per cent higher than at present.

Lastly, Urban Development also released plans for the Toa Payoh lot, where they will explore building two 40-storey private residential projects with nearly 800 units if the consortium they are leading is awarded the lot.