Site near Gardens by the Bay is now on the URA list of protected areas (Getty Images)
For the first time in 12 years, Singapore’s Urban Redevelopment Authority (URA) has rejected the award of a parcel of land offered under the government’s land sale programme, rejecting a solo bid by a GuocoLand-led consortium for the city-state’s Marina South site. ignored. The area was rated as “too low”.
Malaysia’s GuocoLand, together with Singaporean affiliate Hong Leong Holdings and Hong Leong’s TID Residential in partnership with Japan’s Mitsui Fudosan, has invested S$770.5 million (5.5 million yen) for the 1.73 hectare (4.3 acre) Marina Garden Crescent site. The company made a bid of $74 million. It closed last month.
The offer is equivalent to S$984 per square foot of built-up area, which is 30 per cent lower than the price won in July for the adjacent Marina Gardens Lane site, and URA is now considering the Marina Gardens Crescent project. is on the reserve list. In the first half of this year, interested developers will be able to “submit applications to sell their sites at the lowest price acceptable to the government”.
Despite being the first URA sale to fail since 2011, analysts are predicting the bid will fall apart given its low price and prime location in Singapore’s central business district. Ta.
Luxury housing loses momentum
The Marina Gardens Crescent parcel, which has a 99-year lease, will include up to 782,978 square feet (72,741 square meters) of land, consisting of 775 condominiums, 64,580 square feet of retail space, and at least 5,380 square feet of childcare center floor space. Approved for development.
URA Chief Executive Officer Lim Eng Hwee
The Marina Crescent site is the highest-profile of URA’s current government land sales, as it has the potential to be connected to an MRT station and is only the second plot to be sold in the Marina South precinct. It was considered one of the divisions. program.
The last time URA canceled a state-owned land tender was in November 2011, refusing to award commercial land in Paya Lebar to the sole bidder, UOL Group and its Singaporean land subsidiary.
As for the Marina Gardens Crescent site, Propnex Realty’s head of research and content, Wong Shu Ying, said the project could be marketed quickly given the current city center luxury housing market. He said he did not think he would be returned to the United States.
“Given the upcoming supply of new housing in the area, we believe this location may not be built.” [for sale] Immediately,” Wong said. “An estimated 790 new homes could be built on the adjacent Marina Gardens Lane GLS site. [and] There are several development sites in the city that have not yet been sold. Abundant supply could put pressure on developers’ confidence in housing development sites in the city. ”
GuocoLand, Hong Leong and Mitsui & Co. had not commented on the change in the bidding status by the time of publication.
Media circle site receives award
Mr Wong said Singapore’s additional buyer stamp duty for foreigners, which increased to 60 per cent from 30 per cent in April last year, and the lack of schools in Marina South had dampened demand for luxury homes in the area. He said that there is a possibility that
In the same announcement on Thursday, URA awarded the site in Queenstown’s One North district to a joint venture between the highest bidder, China’s Qingjian Group, and Singapore-based company Forsea Residences, backed by Chinese state-run construction giant CCCC.
The joint venture is offering S$395.3 million for the mixed residential and commercial use, which works out to S$1,191 per square foot of gross floor space, 21 per cent higher than the rejected Marina South bid. become.