Billion-Dollar Bids For Two Government Land Sales Sites
Tender results for two 99-year state land parcels in Singapore for private housing were announced on Tuesday, 28 Jun 2023. Bidding for these prime locations was intense, with both sites fetching billion-dollar bids.
Difference in Bid Price %
Marina Gardens Lane
Tampines Avenue 11
UOL-Singland & CapitaLand
The Marina Gardens Lane site attracted considerable interest, with a top bid of $1.034 billion. This bid was submitted by a consortium led by Kingsford, a prominent real estate developer.. Their joint partners are Obsidian Development and Polarix Cultural & Science Park Investment. The Marina Gardens Lane site is located in a highly sought-after area, surrounded by lush greenery and offering stunning views of the marina. It presents an excellent opportunity for developers to create a premium residential development.
Similarly, the Tampines Avenue 11 site also garnered significant attention, receiving a top bid of $1.206 billion. Joint venture developers UOL-SingLand consortium and CapitaLand Development secured the top bid for Tampines Avenue 11’s mega mixed-use site. The consortium submitted the highest bid of $1.135 billion for the 99-year leasehold site that has a gross floor area of 1.76 million square feet. The site will be developed into a mega commercial and residential complex., a reputable real estate firm. The Tampines Avenue 11 site is situated in a vibrant and well-established neighbourhood, offering residents a wide range of amenities and conveniences.
The strong competition and high bids for these land parcels reflect the confidence and optimism in Singapore’s property market. Investors and developers recognize the long-term potential and value of these prime locations. The government’s decision to offer these state land parcels for private housing has opened up opportunities for the creation of high-quality residential developments that will cater to the growing demand for housing in Singapore.
The successful bidders, Kingsford and UOL-Singland in joint venture with CapitaLand, have demonstrated their commitment to delivering exceptional projects in Singapore. With their expertise and resources, they are well-positioned to transform these land parcels into desirable residential communities that will enhance Singapore’s urban landscape.
The sale of these two land parcels marks another milestone in Singapore’s real estate sector, showcasing the city-state’s attractiveness as a prime investment destination. The billion-dollar bids for the Marina Gardens Lane and Tampines Avenue 11 sites highlight the robust demand for quality housing in Singapore and the willingness of developers to invest in its future growth.
As the development plans for these sites take shape, Singaporeans can look forward to the emergence of new, well-designed residential projects that will elevate the standard of living in the city. The successful bids for these land parcels underscore the confidence in Singapore’s property market and its prospects for continued growth and development.
A third plot, located in Plantation Close in Tengah, has garnered significant attention due to its attractive features. This plot, which is an
executive condominium (EC) site, comprises a total of 495 units. The high level of interest in this particular site can be attributed to two main factors: Anglo-Chinese (Pri) School, slated to relocate to Tengah by 2030, and the limited supply of ECs on the market attracted the investors.
The second-half 2022 confirmed list in the Government Land Sales (GLS) programme included these three sites.
Plantation Close Executive Condo Land Parcel:
The scarcity of executive condominiums in the market has contributed to the immense interest in the Plantation Close site. ECs, which offer a hybrid of public and private housing, are highly sought after due to their unique eligibility criteria and attractive pricing. As a result, the 495-unit executive condo site in Plantation Close has attracted a significant number of potential buyers who are looking for a balance between affordability and exclusivity.
Another key factor that has fueled the interest in this plot is its proximity to the popular Anglo-Chinese (Primary) School. This renowned educational institution is well-regarded for its academic excellence and holistic development approach. With its planned relocation to Tengah in 2030, families who are keen on securing a unit in the executive condominium will have the added advantage of having their children attend this esteemed school conveniently.
In conclusion, the 495-unit executive condominium site in Plantation Close, Tengah, has generated massive interest among developers and homebuyers due to the limited supply of ECs in the market and its proximity to the highly-regarded Anglo-Chinese (Primary) School, which will be relocated to Tengah in 2030. Its inclusion in the Government Land Sales (GLS) programme’s second-half 2022 confirmed list further emphasizes its potential and desirability.
Billion-Dollar Bids: Marina Gardens Lane Land Parcel:
This prime site, boasting stunning sea views and overlooking the iconic Gardens by the Bay, presents a lucrative opportunity for development. With a potential yield of 790 residential units, along with a substantial 8,073 square feet of commercial space, this location offers a diverse range of possibilities.
This site will be conveniently connected to the rest of the city by the forthcoming Marina South MRT station. The development will undoubtedly be more attractive and valuable due to this accessibility.
The breathtaking sea views and the captivating scenery of Gardens by the Bay will undoubtedly be major selling points for the residential units. Potential buyers and tenants will be drawn to the allure of waking up to such picturesque vistas every day.
Moreover, the substantial commercial space available on the site offers an excellent opportunity for businesses looking to establish a presence in this sought-after location. The 8,073 square feet of commercial space can be customized to suit the specific needs of various enterprises, ranging from retail outlets to offices and restaurants.
Overall, this highly desirable development site with its sea views, proximity to Gardens by the Bay, and easy access to the future Marina South MRT station, presents an excellent investment opportunity. With the potential to accommodate 790 residential units and a significant amount of commercial space, this development is poised to attract both residents and businesses alike.
Mogul.sg Chief Research Officer Nicholas Mak said, in order to cover the land cost, a developer would need to launch the project at a price per square foot (psf) ranging from $2,680 to $2,800. This is based on a land rate of $1,401.52 psf per plot ratio (ppr). The land cost is a crucial factor that developers consider when determining the selling price of a project. By launching the project at the recommended psf range, the developer can ensure that they are able to cover the land cost while also making a profit. It is important for developers to carefully analyze the market conditions and pricing strategies to determine the optimal selling price for their projects.
Billion-Dollar Bids: Tampines Avenue 11 Mega Land Parcel:
The future integrated development at the Tampines Avenue 11 mega site is expected to bring about significant changes and improvements to the suburbs. With a planned bus interchange and other amenities, this development will not only enhance the overall infrastructure but also provide much-needed new housing supply. Analysts suggest that this development will cater to the demand from upgraders in Tampines, Bedok, and Pasir Ris.
The previous private non-EC residential project launch in Tampines was the impressive Treasure at Tampines, which consisted of a staggering 2,203 units. This mega project was unveiled in March 2019 and showcased the increasing interest in the Tampines area.
With the launch of the upcoming development at Tampines Avenue 11, there is a renewed excitement in the real estate market. The integration of a bus interchange and other amenities will not only provide convenience for residents but also attract potential buyers and investors. The additional supply of 1,190 units will help meet the demand from those looking to upgrade their homes in the Tampines, Bedok, and Pasir Ris regions.
Overall, the future integrated development at Tampines Avenue 11 is anticipated to have a positive impact on the suburbs by injecting new supply and meeting the demand from upgraders. This development, coupled with the previous successful launch of Treasure at Tampines, reflects the growing attractiveness of the Tampines area as a desirable residential location.
With so many different and exciting new condo launches in the Singapore property market, it will not be easy for you to decide which new launch condo is suitable for your purchase. Allow us to help you assess your finances, plan your priorities and determine your best options. Thereafter, we will go and view the list of developments that you have shortlisted.
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