Kingsford-led consortium puts in top bid of $1,402 psf ppr for Marina Gardens Lane GLS site

, come up for sale in 2H2022 GLS programmeThe tenders for three government land sale (GLS) sites recently closed on June 27, all launched as part of the 2H2022 GLS programme in December. Of the three sites, the one at Marina Gardens Lane received four bids, with a consortium made up of Kingsford Huray Development, Obsidian Development and Polarix Cultural & Science Park Investment submitting the highest bid of $1.034 billion, or $1,402 psf per plot ratio (psf ppr).

The Marina Gardens Lane site, measuring around 131,805 sq ft and 99-year leasehold, can yield an estimated 790 residential units and 8,073 sq ft of commercial space. The site is the first of five parcels in Marina South precinct, opposite a white site at Marina Gardens Crescent which can yield an estimated 775 housing units and 64,583 sq ft of commercial space, that is slated to be put up for sale soon.

A spokesperson for Kingsford, who are part of the consortium submitting the top bid, noted: “The project will offer homebuyers unblocked sea views and a first-mover advantage in the Marina South precinct.”

The wide gap between the top bid and the second highest bid of $727.04 million, or $985 psf ppr, by a joint venture between GuocoLand and Hong Leong Group illustrates the difficulties in determining a fair value for a prime site in the new area. Lee Sze Teck, senior director of research at Huttons Asia, commented on this.

Zion Road Condo is a residential development close to Havelock MRT Condo, providing excellent connectivity and convenience. Numerous bus services offer direct connections from the condo to Central Business District (CBD) and other parts of Singapore. Residents can also make use of the nearby Farrer Park MRT station, which is served by the North-East Line. Furthermore, the Orchard MRT station provides access to the North-South Line. The upcoming Havelock MRT station, part of the Thomson-East Coast Line, is set to add to the convenience of Zion Road Condo residents.

The site comprises not only of unblocked sea views, but also direct access to the Marina South MRT Station. ERA Realty Network’s Eugene Lim highlighted this fact, coupled with it being the only one in the Marina South precinct, as being attractive to buyers.

Justin Quek, deputy CEO of OrangeTee & Tie, sees the four bids as a healthy number due to the quantum required for the site, speculating that developers were keen to be the first-mover in the new precinct.

Leonard Tay, Knight Frank Singapore’s head of research, estimates that should the Marina Gardens Lane site be awarded at the top bid, prices of residential units at the future development could start from $2,450 psf. Currently, Downtown Core condominium units are being sold at between $2,700 psf and above $3,000 psf.

These bids reflect that developers expect property prices in the area to continue to increase in the future, both in terms of the location’s prime site in the untested area as well as its proximity and access to amenities.

The Marina Gardens Lane tender is a testament to the optimism towards Singapore’s real estate market, showing that developers are ready to place competitive bids for value-added sites.