With the recent launching of the tender for the White Site at Central Boulevard in Marina Bay, property experts see major developers taking the opportunity to bid given the scarcity of vacant plots available for the development of good grade modern offices in the city centre.
According to JLL Head of Research Tay Huey Ying, the city-state’s business district is already fully developed and land plots for the development of good grade office buildings are limited except in Marina Bay.
“The release of this land parcel for commercial development after a nine-year hiatus will likely see keen participation by major developers – both local and foreign, seeking to stake a claim on the Marina Bay CBD,” Tay said.
To recall, the last tender for land pilots in the Marina Bay locality for commercial development was nine years ago in 2007.
The tender for the white site was triggered when a developer committed to bidding at least $1.536 billion.
Intended primarily for office development, the 141,294 sqm parcel of land has a 99-year leasehold and has portions for other uses.
“They are likely to look past the current soft office demand and rental conditions and focus instead on the potential to ride on the expected market upturn that is underpinned by economic recovery and the tapering off of supply when the project is completed in 2020/21 in assessing their land bids,” Tay explained.
Major developers set to pounce hard on Marina Bay site tender