GLS site at Marina Gardens Lane launched for tender
/ EdgeProp Singapore |
Map showing the Marina Gardens Lane GLS site (Picture: URA)
SINGAPORE (EDGEPROP) - A Government Land Sale (GLS) site at Marina Gardens Lane has been launched for sale via tender, according to a media release by the URA on Dec 5. The site is under the Confirmed List for the 2H2022 GLS Programme. It is the first land parcel to be launched in the upcoming Marina South precinct.
The 99-year leasehold site, measuring about 12,245.1 sq m (131,805 sq ft), is zoned for residential with commercial at the first storey use. It can yield an estimated 790 residential units and about 750 sq m (8,073 sq ft) of commercial space, with a maximum gross floor area (GFA) of about 68,573 sq m (738,114 sq ft).
Map showing the Marina Gardens Lane GLS site (Picture: URA)
The site is the first of five parcels in the Marina South precinct to be put up for sale, says Steven Tan, CEO of OrangeTee & Tie. He anticipates the site to generate strong interest from developers. “This plot will have the first-mover advantage in the development of the Marina South precinct, which is envisioned to be a sustainable and car-lite neighbourhood with a good mix of residential, retail, office and recreational uses.”
Huttons Asia’s senior director of research Lee Sze Teck adds: “The Marina Gardens Lane site is probably the best site in the 2H2022 GLS programme, right at the edge of the CBD.” The site is also located next to the upcoming Marina South MRT Station on the Thomson-East Coast Line, offering excellent connectivity.
Given its location, Lee says that owner-occupiers of the future development will have access to the vast greenery at Gardens by the Bay, while investors will also be able to tap into a large pool of tenants looking to stay near the city centre.
Spanning 45 ha, the Marina South precinct is situated next to Gardens by the Bay and Marina Barrage. In its press release, URA states that the precinct has been planned as a mixed-use residential neighbourhood comprising residential, hotel, retail and some office uses. Upon its full completion, Marina South will have over 10,000 dwelling units.
Marina South will feature a series of planned elevated pedestrian connections connecting the precinct to Gardens by the Bay and the coast. It will also have pedestrian-friendly streets, a comprehensive cycling network, a pedestrian mall, and an underground pedestrian network connecting the Gardens by the Bay and Marina South MRT Stations. Developments in the area are required to attain BCA’s Green Mark Platinum Super Low Energy certification.
Huttons’ Lee believes the site may attract bids from “not more than five developers”, with a top bid estimated between $1,250 and $1,350 psf per plot ratio (psf ppr). Meanwhile, Nicholas Mak, head of research and consultancy at ERA Singapore, views that the top bid could range from $1.003 billion to $1.1 billion, which translates to between $1,360 to $1,490 psf ppr.
Mak projects the tender to attract around two to five bids, noting that the site’s yield of about 790 residential units may exceed developers’ “sweet spot” of around 300 to 500 units. “Furthermore, as there are four other similar sites next to the Gardens by the Bay that will be sold later, some developers may wait to see the outcome of this tender before they act,” he adds.
The most recent GLS site in the Marina Bay area is the site at Marina View, which was sold in September 2021 to IOI Properties for $1.508 billion, or $1,379 psf ppr. The site will be developed into a mixed-use project comprising residential and commercial units and hotel apartments. “As the Marina View project is expected to yield about 905 residential units, which makes it a very big project, it may pose as a potential competitor for the current GLS site at Marina Gardens Lane, provided there is a significant number of unsold units in this project when the future residential project at Marina Gardens Lane is launched for sale to homebuyers,” says Mak.
EdgeProp LandLens screenshot showing a map of the Marina View GLS site. The research tool estimates selling prices for residential units at the site's future development to be around $2,587 psf, after factoring in a 20% profit markup for the developer.
He also points out that most of the comparable properties in District 1 are older condominiums. For example, Marina Bay Residences, located closest to the subject site, achieved its temporary occupation permit more than a decade ago.
The Marina Gardens Lane GLS site tender will close on June 27, 2023.
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