HomeLand SalesSole Bidder For Marina Gardens White Site With Surprising Tender Price
1 Sole Bidder And Surprising Tender Price For Marina Gardens Crescent White Site

Sole Bidder For Marina Gardens White Site With Surprising Tender Price

Consortium emerged as sole bidder for Marina Gardens Crescent land sales with tender price below expectations

A consortium comprising property developers GuocoLand, Hong Leong Holdings and TID (a joint venture between Hong Leong Holdings and Japanese developer Mitsui Fudosan) was the sole bidder of the Government Land Sales (GLS) Marina Gardens Crescent white site with a bid price of S$770.46 million or S$984 per square foot per plot ratio (psf ppr).

The white site can be developed into a mixed-use project with commercial, hotel, residential, sports and recreational uses or a combination of two or more of these uses. The site has a maximum gross floor area of 782,978 sq ft. According to URA, the 99-year leasehold white site can potentially yield about 775 residential units.

The sole bid for this white site right next to the Marina South MRT Station was almost 30 per cent lower than the S$1,402 psf ppr that Kingsford Group paid for a neighbouring plot in Marina Gardens Lane at a state tender that closed in June last year. Kingsford’s S$1.03 billion plot is zoned for residential use with commercial space at first storey. It can generate about 790 private homes, similar to the 775 units for the plot on offer at the latest tender close. The financial district will provide a ready pool of tenants. There will be an underground pedestrian link connecting Gardens By The Bay MRT Station to Marina South MRT Station. This offers flexibility and convenience to residents.

Market analysts noted that the complexity of building close to an MRT line and providing an underground pedestrian link may have been key considerations in the developers’ bid for the site.

Wong Siew Ying of PropNex Realty, said: “It would be interesting to see if the Government will award the Marina Gardens Crescent site at S$984 psf ppr, and whether this meets the government’s reserve price. For Government Land Sale sites, the reserve price is pegged to 85 per cent of the estimated market value as assessed by the Chief Valuer, taking into consideration factors including the proposed land use, site conditions, and relevant sales transactions.”

An analyst said that if GuocoLand were to be awarded the site, residential developers may come under pressure to write down the values of similar sites in the city area.

Its surprising to see just 1 bid and at a price below market expectations. This may indicate developers are taking a more risk adverse stance as elevated interest rates and geopolitical risks are carried forward into 2024. 

Currently, there are several new launches in the Central Business District / Marina Bay Financial Hub vicinity, namely One Bernam, TMW Maxwell, Newport Residences and Skywater Residences and of course upcoming Marina View Residences and Marina Gardens Lane.

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