First Marina South white site and one-north state land site released for sale

SINGAPORE – Two 99-year leasehold government land sites, in Marina Gardens Crescent – the second plot to kick-start development of the 45ha Marina South precinct – and Media Circle in one-north, have been released for sale via public tender.

Together, the white site in Marina Gardens Crescent – intended for a mixed-use development with residential, commercial and/or serviced apartments – and a plot that has been zoned for residential with commercial at first-storey use in Media Circle can yield a total of 1,130 residential units.

These are part of the 4,090 residential units under the confirmed list of the Government Land Sales (GLS) Programme for the first half of 2023, the Urban Redevelopment Authority announced on Friday.

Including the second half of 2023 supply, the confirmed list supply of 9,250 units for the whole of this year will be at its highest level in a decade.

The tenders for both sites will close at noon on Jan 18, 2024.

Land banking interest is still strong, but developers are cautious about large sites amid higher interest rates, a weaker economic outlook and several rounds of cooling measures.

A case in point is Marina Gardens Lane, the first plot in the Marina South precinct that attracted just four bids, including a top bid of $1.034 billion or $1,402 per sq ft per plot ratio (psf ppr), when the tender closed on Tuesday.

Following the latest round of property curbs, “developers now prefer locations that attract buyers who are least or not affected” by the curbs, noted Ms Tricia Song, CBRE’s head of research for South-east Asia.

Ms Song said the Marina Gardens Crescent plot may secure a lower bid price of $1 billion or $1,300 psf ppr, because it “has a lower plot ratio and may not have full unblocked views of Gardens by the Bay”.

Developers may be cautious in bidding also because the higher additional buyer’s stamp duty rates for foreigners and a lack of schools in the vicinity may affect demand, PropNex Realty head of research and content Wong Siew Ying said.

The Marina Gardens Crescent site, which can yield 775 residential units and a maximum of 6,000 sq m of commercial space, is near the Marina Gardens Lane plot. Up to 30 per cent of total gross floor area can be serviced apartments, and office use, if proposed, shall not exceed 5,000 sq m, CBRE noted.

As this is the first white site launched in the Marina South precinct, it will have first-mover advantage in providing amenities there, OrangeTee & Tie deputy chief executive Justin Quek said.

“The future supply of homes and amenities in the Marina South precinct will depend on how fast the Government aims to develop the area. No new plots were announced for sale in that precinct in the second half of 2023 GLS programme, meaning that it may be some time before the next plot is launched for tender,” he said.

But developers will also take into consideration supply from nearby upcoming new projects such as Newport Residences, Skywaters Residences and Marina View Residences, he added.

Those reluctant to take on the development risks of larger sites may be drawn to the Media Circle plot in Mediapolis – a hub for media outfits – that can potentially yield 355 homes and 400 sq m of commercial space, analysts say.

New private housing supply is still fairly limited in the vicinity, despite the launch of Blossoms by the Park and the upcoming The Hill @ One North in Slim Barracks Rise, Ms Wong said.

Reflecting healthy demand in one-north are strong sales at Blossoms by the Park, which sold over 70 per cent of its 275 units at its April launch at an average of $2,423 psf just days after the April 27 round of cooling measures.

ERA Realty Network key executive officer Eugene Lim said the future project in Media Circle will likely attract Housing Board upgraders from Queenstown, which is among the top five HDB towns with the highest number of million-dollar resale flat transactions.

“With substantial resale flat proceeds, we expect good demand from HDB upgraders in the future launch of Media Circle. For example, 28 per cent of buyers of Blossoms by the Park have HDB addresses,” said Mr Lim.

Also appealing to investors is the site’s proximity to notable employment hubs such as one-north, National University Hospital, National University of Singapore and Science Park, which will attract tenants.

Expatriates with children enrolled in the nearby Tanglin Trust School may also contribute to rental demand, Mr Quek said.

Although the site does not offer doorstep access to an MRT station, it is located about 1km from one-north and Commonwealth MRT stations, said Mr Nicholas Mak, chief research officer of Mogul.sg.

PropNex’s Ms Wong said the top bid for the Media Circle plot could come in at about $332 million to $365 million ($1,000 to $1,100 psf ppr) and may attract five to six bids.

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