A consortium led by GuocoLand, run by Malaysian billionaire Kwek Leng Chan, has submitted the only bid for a prime site in the Marina South area, making housing in Singapore more affordable amid rising interest rates and government real estate curbs. There are further signs that demand is softening.
GuocoLand is a joint venture between Hong Leong Holdings’ Intrepid Investments, run by Mr Quek’s Singaporean billionaire cousin Kwek Leng Beng, and Hong Leong and Japan’s Mitsui Fudosan. The partnership has offered to buy a 17,319sq m site in Marina Gardens Crescent for S$770.5 million ($574 million), the Urban Redevelopment Authority announced late Thursday.
The so-called White Site, which could be developed as a mixed-use property with 775 residential units alongside 6,000 square meters of commercial space, is one of the few plots of land the government is selling to private developers in the Marina South area, directly across the street. It is one. From Marina Bay financial district.
The overwhelming response from developers is that government housing regulations, including an increase in Additional Buyer Stamp Duty (ABSD) rates for foreign buyers, have combined with softening economic conditions to boost Singapore’s once resilient economy. This comes amid signs that the real estate market is starting to weigh on the market. Government data released this week showed developers sold just 6,671 homes in 2023, the lowest number in 15 years.
“Developers may have been wary of the high rate of ABSD among foreigners, which could reduce demand,” OrangeTee & Tie CEO Justin Quek said in an email. There is,” he said. Other developers may have chosen not to bid because the large land area would require large sums of money, while others may be waiting for other parcels in the area to become available. There may be.
Guocoland’s bid equates to S$984 per square foot per plot, which was announced in July last year by a consortium led by Kingsford Huray Development (led by Singaporean naturalized Chinese businessman Cui Zhengfeng). That was modest compared to the S$1,402 interest paid a month. nearby site.
Another site auctioned by the government in the One North business district in Queenstown, a town in the west of Singapore, is home to Singapore-based company Forsea Residences, which is backed by China’s Qingjian Group and Chinese state-owned company China Communications Construction. Three companies submitted bids for the joint venture. —Highest bid of S$395.3 million.
“We expect developers to be more selective and cautious in bidding for sites,” Vijay Natarajan, an analyst at Singapore’s RHB Bank, said in an email. “Given that increased supply provides more options, this should lead to softer land prices and a modest increase in overall prices.” RHB expects Singapore house prices to fall by 1-4% this year. Expect.
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