Commentary on URA tender closing of Marina Gardens Lane (2)

By Tricia Song (宋明蔚), Head of Research, Singapore and Southeast Asia, CBRE

Amid expectations of higher interest rates and more lukewarm take-up at recent new launches, the tender for the palatably sized Residential with commercial at first storey site at Marina Gardens Lane (2) (390 units) saw muted interest from developers, receiving just 1 bid at the lower end of our expectations, and a top bid price of $450.10 mil ($1,243 psf ppr) below expectations. This reflects continued developer caution for CBD sites amid uncertain end-user demand due to the hefty ABSD which has dampened foreigner and investment purchases. 

Today’s tender for the residential with commercial at 1st storey site at Marina Gardens Lane (2) (390 units) saw just 1 bid of $1,243 psf ppr from EL Development, below expectations. The sole bid is 11.3% lower than the $1,402 psf ppr paid for the adjacent Marina Gardens Lane site, which drew 4 bids and was awarded to Kingsford Group in Jul 2023 for $1.035 bn.

It is also 9.9% below the $1,379 psf ppr for the large white site at Marina View which was triggered for tender from the Reserve List by IOI Properties Group and awarded after receiving a sole bid from them in September 2021.

In January 2024, the white site at Marina Gardens Crescent (775 units) received just 1 bid from a consortium comprising GuocoLand, Hong Leong Holdings and Mitsui Fudosan for $770 mil ($984 psf ppr), but was not awarded after the government assessed the sole bid was too low.

While Marina Gardens Lane (2)’s lone bid is significantly higher than the rejected $984 psf ppr for the Marina Gardens Crescent site, it is still somewhat below the $1,415 – 1,612 psf ppr for other RCR sites awarded this year such as the slightly bigger Berlayar Drive which also received just one bid at $1,515 psf ppr in Aug 2026. Nonetheless, it may still warrant an award if URA is keen 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. 

Marina Gardens Lane (2) is the third site to be released in the Marina South precinct which has been earmarked for transformation into a sustainable, car-lite, mixed-use residential district under the 2025 URA Master Plan. 

Key draws of the site include:

• Prime location in the CBD offering proximity to workplaces
• Walking distance to Gardens by the Bay MRT (about 500m) and Marina South MRT station, which is currently under construction (about 300m)
• Potential unblocked views over Gardens by the Bay and the signature city skyline of Marina Bay and the CBD
• Regular-shaped plot

However, the location may not appeal to locals due to the absence of a primary school within a 1km radius, while foreigners are hindered by the 60% ABSD. It is also in a relatively new location with limited amenities and upgrader buyers’ pool. 

Nearby 99y-leasehold comparables 

Project	No. of units sold in 2026 YTD	Median price sold in 2026 YTD	Tenure	Year completed	Total no. of units in project
MARINA ONE RESIDENCES	37	$1,889	99 yrs from 01/07/2011	2017	1,042
V ON SHENTON	13	$1,829	99 yrs from 29/11/2011	2017	510
ONE SHENTON	6	$1,865	99 yrs from 14/10/2005	2011	341
MARINA BAY RESIDENCES	9	$2,480	99 yrs from 14/07/2005	2010	428
THE SAIL @ MARINA BAY	24	$2,100	99 yrs from 12/08/2002	2008	1,111
Uncompleted projects
W RESIDENCES MARINA VIEW	11	$2,646	99 yrs from 25/06/2025	Uncompleted	515
ONE MARINA GARDENS	115	$3,009	99 yrs from 09/10/2023	Uncompleted	937

Source: CBRE Research, realis, data downloaded as of 14 Oct 2026. We only include projects with at least 5 transactions in 2026. 

The nearest comparable is One Marina Gardens (937 units) located on the first Marina Gardens Lane site which launched in Apr 2025 and sold 353 units or 38% of its total units at an average price of $2,953 psf over its launch weekend. It has transacted at a median price of $3,009 psf in 2026 YTD and is currently 72% sold.

The Marina View white site, launched as branded residences W Residences Marina View in Jul 2025, has sold 15 units since launch at a median price of $2,660 psf.

Existing 99-year resale projects in the nearby Marina Bay and Shenton Way cluster traded at median prices of $1,829 – 2,480 psf. The oldest is The Sail @ Marina Bay, completed in 2008, and the newest are Marina One Residences and V on Shenton, completed in 2017.

If the tender gets awarded, at a top bid price of $1,243 psf ppr, we expect the developer could look to launch at an average price of $2,850 – 2,950 psf.