by OrangeTee & Tie Pte Ltd.

OrangeTee's comments on tender closing at Marina Gardens Crescent and Media Circle

Government Land Sales

The Urban Redevelopment Authority has closed the tender for two sites at Marina Gardens Crescent and Media Circle. Both parcels were released for sale on 30 June 2023 under the 1H 2023 Government Land Sales (GLS) programme.

Marina Gardens Crescent

There was a sole bidder for this parcel and the bid was S$770,456,256 or around S$984 psf ppr from GuocoLand (Singapore) Pte. Ltd., Intrepid Investments Pte. Ltd. and TID Residential Pte. Ltd.

This is the second parcel released for sale in the Marina South precinct. The White Site can yield an estimated 775 residential units alongside 6,000 sqm of commercial space. The most recent land parcel sold in the vicinity was the first Marina South parcel that was awarded in July 2023 to Kingsford Huray Development Pte. Ltd., Obsidian Development Pte. Ltd. and Polarix Cultural & Science Park Investment Private Limited at a land rate of around S$1,402 psf ppr.

As this is a new precinct, there are still four more sites zoned for Residential with Commercial at 1st Storey use, and numerous White Sites in the vicinity which will be released in the future. Some developers may be waiting to bid for other plots instead. Additionally, developers may have been cautious of the high ABSD rates for foreigners, which may reduce demand.  

The large land size of the parcel would also result in a considerable financial commitment, which may require developers to form consortiums in order to shoulder the financial commitment. White Sites are also more complex and less straightforward to build. Despite the good locational attributes of this parcel, not all developers have the track record of building such a development, which may also result in fewer bidders vying for this site.

Media Circle

There were three bidders for this parcel, and the highest bid price was S$395,288,889 or around S$1,191 psf ppr from CNQC Realty (Clementi) Pte. Ltd. and Forsea Residence Pte. Ltd. The highest bid was 2.7 per cent higher and 17.1 per cent higher than the next highest bid and the lowest bid received respectively.

This site received less bidders than the previous sites in the vicinity at Slim Barracks Rise and one-north Gateway. However, the bid price was within our expectations. Demand for homes in this area has been strong, with new launches selling well on their launch days. A nearby new launch, Blossoms by The Park has seen good take-up since its launch and is currently 83.3 per cent sold out (229 units sold out of 275 total units) as of December 2023’s Monthly Developer Sales data. The close proximity to various schools, NUS, NUH, the one-north business precinct, and the Science Park business area will also attract a large pool of potential tenants or buyers working or studying there.

There is still one unlaunched project nearby, The Hill @ One North, and developers may be waiting for other land parcels to be released from the 1H 2024 GLS programme instead.

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