Tenders were invited for the three government land sale (GLS) sites – a site located at Marina Gardens Lane, a mixed-use site located at Tampines Avenue 11, and an executive condominium (EC) site at Plantation Close in Tengah which was closed on June 27. The three sites were opened for tender in December last year in the GLS 2H2022 programme.
The auction for the site located at Marina Gardens Lane drew four bids. A consortium consisting from Kingsford Huray Development (a unit of the Chinese developer Kingsford Group), Obsidian Development and Polarix Cultural & Science Park Investment made the highest bid, which was $1.034 billion, which translates to the land price of $1,402 per square foot for each plot ratio (psf ppr).
Grand Dunman Dunman Road mrt will have an excellent access to an established transport network within close reach of ammenities.
Its offer was% over the second highest bid that came from the joint venture of GuocoLand as well as Hong Leong Group. The joint venture partners made an offer that was $727.04 million, which is $985 psf per person per day. “The huge variance in bids highlights the challenges in determining fair values for a city-fringe site located in an untested region,” remarks Lee Sze Teck who is the director of research for Huttons Asia.
This 99 year leasehold site located at Marina Gardens Lane, measuring around 131,805 sq feet which is zoned residential and commercial at the first floor. It is estimated to yield 790 residential units, and 8,073 square feet of commercial space. It has a the maximum Gross Floor Area (GFA) of around 738,114 sq feet.
“The Marina Gardens Lane site will offer a unique seafront residential development that includes Singapore’s most famous landmarks Marina Bay Sands and Gardens by the Bay as neighbors,” says a spokesperson for Kingsford. “The development will give homebuyers uninterrupted sea views as well as an advantage for first-movers for Marina South. Marina South precinct,” the company adds.
This site was the very first parcel of land within the Marina South precinct to be offered for auction. It’s situated next to an undeveloped site located at Marina Gardens Crescent which can produce approximately 775 housing units as well as 64,583 sq feet in commercial spaces. The site is scheduled to be launched in the month of April, according to URA’s website.
Eugene Lim, key executive officer of ERA Realty Network, highlights that the offer from the consortium headed by Kingsford is greater than the $1,379 psf per square foot ppr offered to IOI Properties for the Marina View GLS site that was announced in September 2021. ” This indicates that developers believe that condo prices in the region] to continue rise in the near future,” he adds.
In light of the massive amount needed to build this site, Justin Quek, vice-president for OrangeTee & Tie, views the four bids that were received as a good amount. “Developers could have been eager to be the first mover in the new area, because the supply in the Marina South precinct remains low for the moment,” he comments.
Furthermore to that, it is also the site also is the one within this area Marina South precinct which has direct access to the Marina South MRT Station. “The new development, which is mixed-use development connected to the MRT it will be a great appeal to both investors and owners,” says ERA’s Lim. The location of the site, which is adjacent with the Gardens by the Bay will appeal to potential buyers, he claims.
If the site be granted at the highest bid of $1,402 per square foot per The prices of the housing units in the future development could begin at $2,450 per square foot, and then go towards an average of approximately $2,600 to $2,700 per sq ft, according to Leonard Tay, Knight Frank Singapore’s director of research. “Currently, Downtown Core condominium units are priced between $2700 and $3,000 per square foot for the most desirable properties,” he says.