Kingsford-led consortium puts in top bid of $1,402 psf ppr for Marina Gardens Lane GLS site
/ EdgeProp Singapore |
Map showing the Marina Gardens Lane GLS site (Picture: URA)
SINGAPORE (EDGEPROP) - The tenders for three government land sale (GLS) sites – a plot at Marina Gardens Lane, a mixed-use site at Tampines Avenue 11, and an executive condominium (EC) site at Plantation Close in Tengah – closed on June 27. All sites were launched for tender last December as part of the 2H2022 GLS programme.
The tender for the site at Marina Gardens Lane drew four bids. A consortium made up of Kingsford Huray Development (a unit of Chinese developer Kingsford Group), Obsidian Development and Polarix Cultural & Science Park Investment submitted the highest bid of $1.034 billion, translating to a land rate of $1,402 psf per plot ratio (psf ppr).
The consortium’s bid was 42% higher than the second-highest bid, which came from a joint venture between GuocoLand and Hong Leong Group. The joint venture partners submitted a bid of $727.04 million, or $985 psf ppr. “The wide range between the bids reflects the difficulties in determining a fair value for a prime city-fringe site in a relatively untested area,” remarks Lee Sze Teck, senior director of research at Huttons Asia.
The 99-year leasehold site at Marina Gardens Lane, measuring about 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 8,073 sq ft of commercial space, with a maximum gross floor area (GFA) of about 738,114 sq ft. (Find Singapore commercial properties with our commercial directory)
“The Marina Gardens Lane site will feature a first-of-its-kind seafront residential project counting Singapore’s icons Marina Bay Sands and Gardens by the Bay as neighbours,” says a spokesperson for Kingsford. “The project will offer homebuyers unblocked sea views and a first-mover advantage in the Marina South precinct,” they add.
Map showing the Marina Gardens Lane site. It is opposite the white site at Marina Gardens Crescent (right, in blue) (Source: EdgeProp LandLens)
The site is the first of five parcels in the Marina South precinct to be put up for sale. It is opposite a white site at Marina Gardens Crescent which can yield an estimated 775 housing units and 64,583 sq ft of commercial space. The site is slated for launch this month, according to URA’s website.
Eugene Lim, key executive officer at ERA Realty Network, highlights that the bid by the Kingsford-led consortium is higher than the $1,379 psf ppr paid by IOI Properties for the Marina View GLS site, which was awarded in September 2021. “ It indicates that developers expect condo prices [in the area] to continue to increase in the future,” he adds.
Considering the large overall quantum required for the site, Justin Quek, deputy CEO of OrangeTee & Tie, views the four bids received as a healthy number. “Developers may have been very keen to be the first-mover in the new precinct, as supply in the upcoming Marina South precinct remains low for now,” he comments.
In addition, the site is the only one in the Marina South precinct which has direct access to the Marina South MRT Station. “The future development, which will be a mixed development linked to the MRT, will possess strong appeal for both investors and owner-occupiers,” says ERA’s Lim. The site’s location adjacent to the Gardens by the Bay will also be attractive to buyers, he says.
Should the site be awarded at the top bid of $1,402 psf ppr, prices of residential units at the future development could start from $2,450 psf, before moving up to an average of around $2,600 psf to $2,700 psf, opines Leonard Tay, Knight Frank Singapore’s head of research. “Currently, Downtown Core condominium units are being sold at between $2,700 psf and above $3,000 psf for some of the prime units,” he says.
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