_GLS Tender Closing - Marina Gardens Lane, Tampines Avenue 11 and Plantation Close

Leonard Tay June 28, 2023

Marina Gardens Lane

There were four bids for the residential site at Marina Gardens Lane, with a top bid of S$1.03 billion or S$1,402 psf per plot ratio (ppr) where the unit land price is within expectations. This was a significant 42.3% higher than the second highest bid of S$727 million or S$ 985 psf ppr, and almost 600% above the lowest bid of S$148 million or S$201 psf ppr.

The top bid for what can be regarded as a prime location is slightly higher than the Bukit Timah Link GLS site which was awarded for S$1,343 psf ppr in November 2022, as well as both the Dunman Road plot which was awarded for $1,350 psf ppr and Pine Grove (Parcel A) which was awarded for $1,318 psf ppr a year ago in June 2022.

The top bid at Marina Gardens Lane is also about 1.7% higher than the mixed hotel and residential white site at Marina View which was awarded for S$1,379 psf ppr in September 2021. The separation between the top bid and the rest suggest that developers were likely apprehensive over the substantial size of the Marina Gardens Lane parcel and the large development quantum, almost two months since the government announced increases in Additional Buyer’s Stamp Duty (ABSD) rates for most categories.

A developer who has any intent for such a development in the Marine South Planning Area would have to ask, “with the doubling of the ABSD rate for foreign buyers to 60%, will there be enough locals willing to fork out premium price to live in close proximity to the Downtown Core and Gardens-by-the-Bay. Or, will there be enough foreigners willing to pay the increased ABSD for a view of Marina Bay and Gardens-by-the-Bay?”

Notwithstanding the cooling measures as well as the current elevated interest rate environment, the location at Marina Gardens Lane is a unique and attractive one. Close to recreational greenery as well as Singapore’s commercial centre, the site would also be the first in the mixed-use Marina South that is planned as a 10-minute neighborhood, where daily needs can be accessed within a 10-minute walk.

Should this site be awarded at the top bid of S$1,402 psf ppr, prices of residential units at this development could start from S$2,450 psf, before moving up to average of around S$2,600 psf to S$2,700 psf. Currently, Downtown Core condominium units that are being sold at between S$2,700 psf and above S$3,000 psf for some of the prime units.

Tampines Avenue 11

Despite its size and development quantum where an outlay of above S$1 billion in land cost is needed to secure the site, homebuyer interest in mixed-integrated developments at main transport nodes remains firmly intact, as seen from the demand at The Reserve Residences. With the development of Tampines North MRT station on the Cross Island Line (CRL) as well as a bus interchange at the site, this developing locality within the established Tampines is set to burgeon into a new hive of housing and human activity.

The top bid of about S$1.2 billion or S$885 psf ppr is 13.9% above the second highest bid of S$1.1 billion or S$777 psf ppr, and 32.7% higher than the lowest bid of S$909 million or S$667 psf ppr. While the number of bids is within expectations, the top bid comes in under expectations at S$885 psf ppr. As such, the possible selling price for the residential units here when ready to launch could start from S$1,900 psf and average at around S$2,000 psf.

However, based on the attraction of mixed-use developments with a sizeable retail component that are coveted by homebuyers for their convenience of amenities, there is every chance that homebuyers today would be prepared to pay above S$2,100 psf, especially with prices at The Reserve Residences selling at an average of S$2,460 psf.

Potential homebuyers would be enticed by the site’s connectivity to public transport and relative proximity to the warehouse retail area where IKEA, Courts, and Giant are located. Furthermore, a new condominium project here can cater to the sizable pool of upgraders from Tampines, Bedok and Pasir Ris.

Plantation Close (Executive Condominium)

No comments for Plantation Close as it is a modified Concept and Price revenue tender system with no land tender prices were revealed.

_GLS Tender Closing - Marina Gardens Lane, Tampines Avenue 11 and Plantation Close

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