The government has opened two sites available for sale in the 1H2023 Government Land Sales (GLS) Programme. The first is white site located at Marina Gardens Crescent and a commercial and residential site located in Media Circle in the precinct of one-north.
Its 1.73ha white site located at Marina Gardens Crescent is estimated to produce 775 housing units and 64,560 sq feet of commercial space. It has a the gross plot ratio being 4.2. The development will connect to the planned Marina South MRT Station on the Thomson-East Coast Line, and adjacent to Marina South Pier Station on the North-South Line.
This recently launched site is located next to another site located on Marina Gardens Lane that was granted to a Kingsford Group-led consortium of developers on the 27th of June. The site is classified as “residential which includes commercial space at the 1st storey”. The tender that was accepted for the site was $1.034 billion, resulting in an average land value of $1,402 in plot proportions (ppr).
“As as with similar to the (Marina Gardens Lane site) we anticipate developers to be wary of (Marina Gardens Crescent) site.” (Marina Gardens Crescent) site, given that the higher additional buyer’s stamp tax (ABSD) rates for foreigners and investors, as well as the absence of schools within the area could affect the demand for houses to be built on this site,” says Wong Siew Ying the director of content and research for PropNex Realty.
She also says the pipeline for private residential developments within downtown CBD along with the Downtown area have yet to come on the market. In the near future, projects in the region comprise Newport Residences, Skywaters Residences and Marina View, a project. Marina View, which was granted in September 2021.
However the developer who can secure the site will have a first-mover advantage in providing the needed commercial amenities that will help support the growing working and resident community in the region, according to Justin Quek, deputy CEO of OrangeTee & Tie.
He says that there are there are no new GLS sites within the Marina South precinct were announced in the 2H2023 GLS program. “This implies that it could be a while before the next plot is offered to tender,” he says.
“While developers will likely take their price as a reference of that of the Marina Gardens Lane plot that ended on the 27th of June We estimate that the most expensive bid for this plot could be in the range of $1,400-$1,500 per sq ft, considering the appeal of this site being the very first site within this area. Marina South area,” Quek says. Quek.
Wong has a similar prediction in which he suggests the site could draw three bids, with the highest price of around $1.14 billion. This is a land-based rate of $1,450 psf per ppr.
Another GLS site has also been inaugurated in Media Circle in the one-north precinct. The 114,420 square feet site is an average plot-to-plot proportion that is 2.9 and is classified as “residential and commercial on the 1st storey”. It is expected to produce 355 residential units as well as 4,304 square feet of commercial spaces. The development site is located near several bungalows in black and white on Portsdown Road.
The GLS site may attract small developers who are hesitant to risk taking on the risk of developing a larger site according to Wong. She also says that a few new sites on 2H2023 on the 2H2023 GLS list offer a medium-sized to large size with more than 500 housing units each.
Lee Sze Teck, senior director of research at Huttons Asia, says the new development will profit from a strong demand for tenants coming from companies located that are located nearby in Mediapolis.
He also mentions that the site is also a bit distant from public transportation and amenities. The nearest MRT station is located at one-north Station located about 980m away. So, he anticipates this site to be closed with less than five bids and a highest price of not more than $1,100 per psf per. Contrarily, Quek estimates this site could receive seven to 10 bids, and the highest bid could be between $1,150 psf per person to $1,250 per psf per.
The auction for the sale of Media Circle and the Marina Gardens Crescent site and Media Circle site will close on January 18, 2024.