The government has opened two sites to be sold in the 1H2023 Government Land Sales (GLS) Programme. The first is two white site located at Marina Gardens Crescent and a commercial and residential site located in Media Circle in the precinct of one-north.
Grand Dunman map is situated in one of the attractive neighbourhoods in Singapore.
This 1.73ha white site located at Marina Gardens Crescent is estimated to produce 775 homes and 64,560 square feet of commercial space. It has a an average gross plot ratio of 4.2. The new development will connect to the planned Marina South MRT Station on the Thomson-East Coast Line, and near the Marina South Pier Station on the North-South Line.
The newly-launched site is located next to another site located on Marina Gardens Lane that was granted to a Kingsford Group-led consortium of developers on the 27th of June. The site is classified as “residential and commercial on the 1st storey”. The tender that was accepted for the site was $1.034 billion, resulting in an average land value of $1,402 for each plot (ppr).
“As as with similar to the (Marina Gardens Lane site) we anticipate developers to be wary of (Marina Gardens Crescent) site.” (Marina Gardens Crescent) site, given that the higher additional buyer’s stamp tax (ABSD) rates for foreigners and investors as well as the absence of schools in the area could affect the demand for homes that are planned for this,” says Wong Siew Ying the director of content and research of PropNex Realty.
She also says there is a queue of private residential developments located in downtown CBD as well as the downtown area have yet to come on the market. The upcoming projects in the region comprise Newport Residences, Skywaters Residences and Marina View. Marina View, which was given in September 2021.
However the developer who is able to secure the site will have a first-mover advantage in providing the needed commercial amenities that will help support the growing working and resident people in the region, according to Justin Quek, deputy CEO of OrangeTee & Tie.
He says that there are there are no new GLS sites within the Marina South precinct were announced in the 2H2023 GLS program. “This suggests that it will take some time before the next site is offered to tender,” he says.
“While developers will likely take their price source of this Marina Gardens Lane plot that ended on the 27th of June We estimate that the most expensive bid for this plot could be in the range of $1,400-$1,500 per square foot, based on the appealingness of this parcel because it is the only white site located in this area. Marina South area,” Quek says. Quek.
Wong has a similar prediction suggesting that the site could draw three bids, with the highest offer of $1.14 billion, or an land price of $1,450 per square foot ppr.
Another GLS site was inaugurated in Media Circle in the one-north precinct. The 114,420 square feet site is an average plot-to-plot proportion to 2.9 and is classified as “residential which includes commercial space at the 1st storey”. It is expected to produce 355 residential units as well as 4,304 square feet of commercial spaces. The development site shares a lot with several black-and-white bungalows on Portsdown Road.
The GLS site might attract less established developers who are reluctant to risk the risks of building a bigger site According to Wong. She also says that a few new sites on 2H2023 on the 2H2023 GLS list are medium-sized to large size with more than 500 homes each.
Lee Sze Teck, senior director of research at Huttons Asia, says the new development will profit from a strong demand for tenants that comes from the businesses that are located nearby in Mediapolis.
But, he also notes that the site is also quite distant from public transportation and amenities. The closest MRT station is located at one-north Station located about 980m away. So, he anticipates this site to be closed with at least five bids and a highest price of not more than $1,100 per psf per. However, Quek estimates this site could attract seven to 10 bids, and the highest bid could be between $1,150 and $1,250 per psf per.
The auction for the sale of Media Circle and the Marina Gardens Crescent site and Media Circle site will close on the 18th of January, 2024.