URA launches development sites at Marina Gardens Crescent and Media Circle for tender

/ EdgeProp Singapore |
The 1.73ha white site at Maina Gardens Crescent is estimated to yield 775 residential units and 64,560 sq ft of commercial space.
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SINGAPORE (EDGEPROP) - The government has launched two sites for sale under the 1H2023 Government Land Sales (GLS) Programme. They are a white site at Marina Gardens Crescent and a residential and commercial site at Media Circle in the one-north precinct.
The 1.73ha white site at Marina Gardens Crescent is estimated to yield 775 residential units and 64,560 sq ft of commercial space, with a gross plot ratio of 4.2. The new development will also be connected to the future Marina South MRT Station on the Thomson-East Coast Line and close to the Marina South Pier Station on the North-South Line.
This newly launched site is adjacent to a different site on Marina Gardens Lane that was awarded to a Kingsford Group-led consortium of developers on June 27. The site is zoned “residential with commercial at 1st storey”. The winning tender was $1.034 billion, translating to a land rate of $1,402 psf per plot ratio (ppr).
Marina Gardens Crescent - EDGEPROP SINGAPORE
“As with the (Marina Gardens Lane site), we expect developers to be cautious about the (Marina Gardens Crescent) site, given that the higher additional buyer’s stamp duty (ABSD) rates on foreigners and investors and the lack of schools in the vicinity may impact demand for future homes to be built here,” says Wong Siew Ying, head of research and content at PropNex Realty.
She adds that a pipeline of new private residential projects in the CBD and downtown areas has yet to hit the market. Upcoming projects in the area include Newport Residences, Skywaters Residences and the project at Marina View, which was awarded in September 2021.
However, the developer that manages to clinch this site would have a first-mover advantage in providing the much-needed commercial amenities to support the growing resident and working population in this area, says Justin Quek, deputy CEO of OrangeTee & Tie.
He adds that no new GLS sites in the Marina South precinct were announced in the 2H2023 GLS programme. “This means that it may be some time before the next plot is eventually launched for tender,” he says.
“While developers will likely take their price reference from the Marina Gardens Lane plot that closed on 27 June, we estimate that the highest bid price for this plot may be between $1,400 to $1,500 psf ppr, given the attractiveness of this plot as the first white site in the Marina South area,” says Quek.
Wong shares a similar projection and suggests that the site could attract three bids, with a top bid of about $1.14 billion or a land rate of $1,450 psf ppr.
Another GLS site was also launched at Media Circle in the one-north precinct. This 114,420 sq ft site has a gross plot ratio of 2.9 and is zoned “residential with commercial at 1st storey”. It is estimated to yield 355 residential units and 4,304 sq ft of commercial space. This development site neighbours several black-and-white bungalows along Portsdown Road. (Find Singapore commercial properties with our commercial directory)
This GLS site could appeal to smaller developers who are currently reluctant to take on the risk of a larger site, says Wong. She adds that several new sites in the 2H2023 GLS list have a medium to large development size, offering more than 500 residential units each.
Lee Sze Teck, senior director of research at Huttons Asia, says the new development will likely benefit from strong tenant demand originating from the companies in nearby Mediapolis.
However, he adds that this site is also relatively far from public transport options and amenities; the nearest MRT station is one-north Station, about 980m away. Thus, He expects this site to close with no more than five bids and a top bid of no more than $1,100 psf ppr. In contrast, Quek estimates this site could draw in seven to 10 bids and a top bid price of between $1,150 psf ppr to $1,250 psf ppr.
The tender for the sale of the Marina Gardens Crescent site and Media Circle site will close on Jan 18, 2024.

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