The recent tender for the Marina Gardens Lane Government Land Sales (GLS) site concluded with only one bid from EL Development, amounting to $450.1m. This translates to approximately S$1,243 per square foot per plot ratio (psf ppr), which is notably lower than the anticipated range of S$1,400 to S$1,500 psf ppr. This bid also represents an 11.3% discount compared to the S$1,402 psf ppr achieved by the first Marina Gardens Lane site awarded in 2023.
If awarded, the second Marina South project could launch with prices ranging from S$2,700 to S$2,900 psf, contingent on market conditions and product positioning. The solitary bid contrasts with the four bids received in the previous 2023 tender, indicating developers’ hesitance to invest in the undeveloped residential area. Developers appear to be reserving their resources for more established neighbourhoods where demand from upgraders and right-sizing homebuyers is more predictable.
The outcome mirrors the sentiment observed at the nearby Marina Gardens Crescent site, which also received a single bid when its tender closed in January 2024. Factors such as ongoing construction cost pressures, a substantial future residential pipeline, and uncertainty regarding the district’s maturation pace may have contributed to the tepid response. According to Leonard Tay, Head of Research at Knight Frank Singapore, “The tender outcome suggests that developers are currently differentiating between confidence in Marina South’s long-term vision and the more conservative pricing they are prepared to underwrite today.”
The tender results highlight developers’ cautious approach towards Marina South, despite the positive sales performance of One Marina Gardens.
