The Marina View site has been awarded to IOI Properties Group, a unit of Malaysia’s company, for a staggering $1.508 billion.
The bid of $1,508,000,101 was only slightly above the minimum price of $1.508 billion that led to the launch of the 99-year leasehold plot, as announced by the Urban Redevelopment Authority on Wednesday (Sept 29). According to analysts, the land rate is calculated to be $1,379 per square foot per plot ratio (psf ppr).
W Residences Marina View white site was made available through the reserve list of the first-half 2021 Government Land Sales programme. It is designed for a mixed-use development, offering options for residential, hotel, commercial, and/or serviced apartments. It has the potential to generate 905 private homes, 2,000 sq m in gross floor area (GFA) of commercial space, and 540 hotel rooms.
Experts observed the lone bid and indicated that developers have become more careful because of the high expenses associated with the land and development of the site. Additionally, there is uncertainty surrounding the office and hotel sectors in the Central Business District (CBD).
“This tender award demonstrates that the (Government) is willing to grant a site as long as the developer meets its criteria and minimum reserve price, regardless of the level of competition,” commented Ismail Gafoor, CEO of PropNex Realty.
This site’s location offers a unique chance for the tenderer to take advantage of the scarcity of residential units in this highly sought-after area. According to Mr. Gafoor, there were fewer than 700 unsold units from four projects in the downtown core as of the end of the second quarter.
According to analysts, the selling price of private residential units in the new development is projected to exceed $2,600 per square foot.
According to Mr Wong Xian Yang, head of research for Singapore at Cushman & Wakefield, the development aligns with the goal of revitalising the CBD by incorporating a greater variety of uses.
According to the speaker, the most recent significant development in District 1 is Marina One Residences, which has seen impressive sales with over 90% of units sold.
According to Mr Mark Yip, the CEO of Huttons Asia, the government likely took into account the larger goal of enhancing the residential aspect of the “work live play” concept in the CBD. They are fully committed to making this a reality. This has the potential to completely transform the entire CBD.
According to Nicholas Mak, the head of ERA research and consultancy, the developer might prioritise constructing apartments due to the difficulties currently faced by the hospitality sector.
“The developer will need to sell a significant number of units – specifically, between 1,250 and 1,300 units,” he added.
IOI Properties, known for its developments in Malaysia, Singapore, and Xiamen, is currently working on a new project in Central Boulevard. The company acquired the site for $2.57 billion in November 2016, after initiating its release with a minimum bid of $1.536 billion. The land rate came to $1,689 per square foot per plot ratio.
The group possesses a substantial development landbank spanning approximately 4,000 hectares. IOI oversees a vast portfolio of 6.7 million square feet of lettable area, which includes a diverse range of properties such as shopping malls, retail spaces, and offices.