Singapore’s Marina Bay mixed-use site may attract bids in excess of US$800 million amid housing boom

The Urban Redevelopment Authority (URA) is to auction a prime waterfront residential and commercial lot on the edge of Singapore’s Marina Bay financial district amid surging real estate demand in the city-state.

The 12,245-square-meter lot on Marina Gardens Lane — which overlooks the Marina Reservoir and Singapore Strait — is open to development into a condominium project with up to 790 residential units and commercial space on the ground floor, URA said on Monday. The tender for the property ends in June 2023.

Based on the gross floor area of ​​68,573 square meters, real estate agent OrangTee & Tie estimates the site could attract bids between S$1.07 billion (US$790 million) and S$1.15 billion.

“We expect developers to show keen interest in the property as it is the first package to be launched in the Marina South district,” OrangeTee & Tie CEO Steven Tan said via email. “As the final asking price is likely to exceed S$1 billion, developers can form joint ventures to reduce the development risk of this site. There can be between two and five bidders for this parcel.”

The site is the latest property to be auctioned by URA in the Marina Bay district since it sold a hotel and residential property to Malaysian developer IOI Properties for S$1.5 billion in September 2021. The government is releasing more state-owned land for auction to private developers looking to replenish their land banks as Singapore’s property market braves a global property market downturn amid rising rents in the Lion City.

“This property is expected to be hotly contested in the bidding process,” Leonard Tay, director of research at Knight Frank Singapore, said via email. The project will have unobstructed views of the CBD, Gardens by the Bay, the Marina Reservoir and the sea, and will provide residents with front-row seats to the fireworks display at National Day events, at least before other sites are developed in the area, he added.

Home prices in the city-state hit a record high, rising 3.8% in the third quarter after rising 3.5% in the previous three months despite recent measures to cool housing. Due to robust demand, billionaire Kwek Leng Beng’s City Developments and its partner MCL Land, a unit of Hong Kong Land, sold all 639 units of the Copen Grand Executive condominium project in western Singapore a month after the project launch.

The Marina Gardens Lane property, located adjacent to the upcoming Marina South MRT station, is part of the 45-acre Marina South neighborhood — near Gardens By the Bay and the Marina Bay Sands casino and convention center — that the government has designated would like to develop a district with apartments, hotels, retail space and some office buildings. When fully developed, the district will have up to 10,000 residential units.

“Marina South is designed as a sustainable, low-car, community-focused neighborhood and will feature pedestrian-friendly streets, an extensive bike network, a pedestrian precinct and an underground pedestrian network connecting the two Thomson East Coast Line stations at Gardens by the Bay and Marina South” , the URA said. “A series of planned elevated pedestrian connections will seamlessly connect the neighborhood to Gardens by the Bay and the coast.”

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