EL Development puts in sole bid for Marina Gardens Lane site at S$450 million or S$1,243 psf ppr
It is below estimates from market watchers for a top offer of S$1,350 to S$1,500 psf ppr
[SINGAPORE] A state land site for a 390-unit residential project in Marina South fetched just one bid at tender close on Thursday (Oct 15) from local developer EL Development.
Its bid of S$450.1 million works out to S$1,243 per square foot per plot ratio (psf ppr) for the 99-year leasehold site in Marina Gardens Lane, the third plot released in the new precinct.
Market watchers polled ahead of the tender closing had anticipated up to six bidders, given its attractive location and “palatable” size as the smallest of three parcels released for sale in the area so far. But EL Development’s offer for the prime District 1 site fell below forecasts of S$1,350 to S$1,500 psf ppr for the top bid.
The muted response also contrasted with that of another Marina Gardens Lane site, where the 937-unit One Marina Gardens now sits. It drew four bids and a top offer of S$1,402 psf ppr from Kingsford Group in July 2023.
Across the road, a Marina Gardens Crescent white site drew a single bid of S$984 psf ppr from a consortium comprising GuocoLand, Hong Leong and Mitsui Fudosan when its tender closed in April 2024.
The offer was rejected by authorities for being “too low”, and the site placed on the reserve list.
Nicholas Mak, Mogul.sg chief research officer, said that EL Development’s offer was the second-lowest land rate among the 13 private residential government land sales (GLS) tenders that closed in 2026, excluding executive condominium sites.
It is also well below the S$1,415 to S$1,612 psf ppr fetched by other city fringe residential sites awarded in 2026, said Tricia Song, CBRE’s head of research for Southeast Asia and Singapore.
This includes the Berlayar Drive site, which received a single bid of S$1,515 psf ppr in August.
Wong Siew Ying, PropNex head of research and content, said the weaker-than-expected showing suggests that developers remain cautious about Marina South, even as its first private residential project makes “steady progress” in sales.
The adjacent One Marina Gardens has sold about 72 per cent or 672 of its 937 units since it launched in April 2025. Units transacted at an average price of S$2,970 psf.
Thursday’s tender result also reflects a recurring trend for Central Business District GLS sites, said Huttons Asia CEO Mark Yip.
Since 2021, three of four tenders in the area have drawn a single bid.
“In an increasingly risk-averse environment due to geopolitical uncertainties, developers are tightly managing liquidity and selective of sites,” Yip added.
Song attributed developers’ apprehension to “uncertain end-user demand”, as hefty additional buyer’s stamp duty continues to deter foreign buyers and investors.
“It is also in a relatively new location with limited amenities and upgrader buyers’ pool,” she said.
Mak noted that the absence of primary and secondary schools nearby could limit the site’s appeal to families.
Weak resale performance at some comparable Marina Bay projects may also weigh on sentiment, one consultant pointed out.
Marina One Residences, for instance, recorded 30 unprofitable transactions in 2025.
In the second quarter of 2026, a 2,379 square foot unit at Marina Bay Residences was among the top loss-making deals, changing hands at a loss of 19 per cent or S$1.4 million.
Leonard Tay, Knight Frank research head, said construction cost pressures and uncertainty over how quickly Marina South will mature may also have tempered interest.
“Developers are currently differentiating between confidence in Marina South’s long-term vision, and the more conservative pricing they are prepared to underwrite today.”
At the same time, a plethora of options remain in the market.
Mak pointed out that eight other GLS residential sites are still open for tender.
More than 10,000 new homes are also planned for the 45-hectare Marina South neighbourhood over the longer term.
“Most developers are not yet ready to place confidence into the undeveloped residential neighbourhood in the current season, preferring instead to reserve their gunpowder for more established built-up residential neighbourhoods where upgrader and right-sizing homebuyer movement is more likely,” Tay said.
Still, Wong expects interest to firm up as the precinct develops and more amenities come on stream.
“The lack of condominiums in this neighbourhood could (also) bode well for the successful bidder, who will face limited competition for the future development,” added Marcus Chu, ERA Singapore chief executive.
Based on the land rate of S$1,243 psf ppr, analysts expect the future development to sell at an average price of S$2,500 to S$2,900 or more.
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