Only one developer submitted a bid for a mixed-use government land sale (GLS) site at Marina Gardens Lane in District 1, when the public tender closed on October 15.
EL Development submitted the sole bid of $450 million for the 64,700 sq ft site, and the bid price translates to a land rate of $1,243 psf per plot ratio (ppr).
The site, which is zoned 'Residential with Commercial at 1st storey', has a plot ratio of 5.6 and a total allowable gross floor area of 362,100 sq ft. If developed, the site could result in a mixed-use project with about 390 condo units and over 1,600 sq ft of commercial space.
The tepid response to this GLS site in the Marina South precinct, a 45ha mixed-use area next to the Central Business District (CBD) and the landmark Gardens By The Bay, reflects an underlying hesitation among most developers towards this new precinct.
In fact, the low turnout in developer participation in this GLS tender, as well as the bid price, is far below initial market expectations by market analysts before the close of this tender.
Leonard Tay, Head of Research at Knight Frank Singapore, notes that the bid price of $1,243 psf ppr by EL Development is below the $1,400 to $1,500 psf ppr price range that he had expected prior to the tender closing.
He adds that it is also a notable discount of 11.3% to the $1,402 psf ppr which was achieved by the first Marina Gardens Lane GLS site after it was awarded in 2023. That site was eventually awarded to a consortium of developers led by Kingsford Group, who put in the winning bid of $1.034 billion. In addition, that tender drew four different bids.
The Kingsford-led consortium of developers is developing that site into the 937-unit One Marina Gardens, which launched for sale in April 2025. At the time, the average selling price of the new condo was about $2,950 psf.
However, there is a chance that the new project by EL Development could launch at an average price of $2,700 psf to $2,900 psf, depending on market conditions at launch and the eventual product positioning, says Tay.
The low developer participation in this GLS tender signals that most developers are not yet ready to place confidence into this undeveloped residential neighbourhood.
He reckons that most developers prefer to "reserve their gunpower" for GLS sites in more established built-up residential neighbourhoods, where the catchment of upgrader and right-sizing homebuyer demand is more likely.
The Marina South precinct was first introduced by URA as part of the 2013 Draft Master Plan. The reclaimed land next to the CBD is envisioned as a sustainable, car-lite, mixed-use residential district. But the development of this waterfront precinct is still in its early stages.
One Marina Gardens, which is still under construction, is the only new private residential development there. Moreover, Marina South MRT station on the Thomson-East Coast Line (TEL), which is supposed to support the planned population, is not in operation.
The government says that the station will remain closed until the surrounding residential and commercial developments are completed, in order to avoid under-utilisation.
That is not to say that there have been no new developments at Marina South. The Singapore Tourism Board awarded a tender to Therme Group Singapore to develop and operate a 4ha wellness attraction along the Marina South waterfront.
Marina Bay Sands is also constructing a new fourth tower to complement the existing landmark integrated development. The new 55-storey tower will feature 570 luxury hotel suites, a 15,000-seat live entertainment arena, and new retail and conference facilities.
Nevertheless, it seems that this is not enough to convince developers on the buying demand for new condos this close to the central area.
In fact, the tender for the latest Marina Gardens Lane GLS site mirrors sentiments previously observed at the nearby Marina Gardens Crescent site. That tender closed in January 2024 and also attracted one bid.
A joint venture (JV) comprising GuocoLand, Hong Leong Holdings, and TID, submitted the only bid for the Marina Gardens Crescent site. But their bid price of $770.46 million ($984 psf ppr) was ultimately rejected by URA, which had deemed it 'too low'.
For context, the successful bid from the Kingsford-led consortium is about 30% more than the bid price submitted by the GuocoLand-led JV.
Some property analysts saw the bid by EL Development as low but not unreasonably so, and expressed that it left the door open enough for URA to possibly accept the bid price.
They also pointed to the fact that the bid price of $1,243 psf ppr is still below the land prices that have been awarded for other city-fringe sites this year, which range from $1,415 psf ppr to $1,612 psf ppr.
This is also seen in the slightly bigger Berlayar Drive site, which also received just one bid at $1,515 psf ppr in Aug 2026, said CBRE.
Market Watchers Were Split on how to Interpret this Single-Bid
Market analysts like Tricia Song, Head of Research, Singapore and Southeast Asia, at CBRE, say that the tender also reflects continued developer caution for residential and mixed-use development sites in and around the CBD amid uncertain demand.
Their concerns largely stem from the hefty ABSD which has dampened foreign buyer and investment purchases for centrally located condos, which previously made up a large portion of the buyers in this segment.
In the end, it is possible that URA might be keen to award the site to EL Development in order to advance the development of the area, especially considering the higher sales risk for the CBD location and abundant future competitive supply from a developers’ point of view, says Song.
However, Mohan Sandrasegeran, Head of Research & Data Analytics at SRI, believes that a sole bid does not guarantee that URA will award the site. He also reiterates that the relatively low bid price need not necessarily be interpreted as a weakening of the private residential market in Marina South.
"The tender outcome may reflect a more selective approach towards land acquisition, particularly within a precinct that is still undergoing progressive development," he says.
"A combination of ongoing construction cost pressures, the large future residential pipeline planned for Marina South, and uncertainty over the pace at which the district will mature could have contributed to the restrained response," says Tay of Knight Frank.
He adds that 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.
How does this tender compare to other GLS sites so far this year?
The opportunity to secure one of the first few development sites in Marina South would certainly be enticing to some developers, since it would give them a strong foothold into the new precinct and launch a project that would allow future residents to enjoy a waterfront precinct close to the CBD.
However, the subdued participation might underscore a recurring trend for centrally located GLS sites like this. Some market commentators concurred that developers might be antsy about putting down a bid because they don't see a clear target buyer profile.
Most GLS tenders so far this year have drawn an average of four to seven bids. City-fringe sites have also fetched strong land bid prices, such as the Peck Hay Road GLS site achieving a top bid of $1,865 psf ppr, while a GLS site on Dunearn Road managed to pull in an impressive bid of $1,625 psf ppr.
Even the handful of GLS tenders which also drew just one bid pushed up price expectations, such as the Holland Plain GLS site ($454 million, $1,491 psf ppr) and Berlayar Drive ($576 million, $1,515 psf ppr).
Foreigners, who once bought many of these units, have been taxed out of the market by the 60% ABSD. Local buyers, meanwhile, tend to prefer established neighbourhoods with schools and amenities. Marina South has neither yet, and CBRE notes there’s no primary school within 1km of the site.
Sandrasegeran adds that a recent increase in residential GLS land supply might also provide developers with a wider range of land acquisition opportunities contributing to a more selective approach towards land bidding.
From a macroeconomic perspective, developers are certainly being tighter about their liquidity and more selective when it comes to deploying capital. The environment across the economy is increasingly risk-averse, looking ahead to expectations of higher interest rates.
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