Marina South: The Next Chapter in Developing Singapore’s CBD

Previously, we touched on how the extension of the Central Business District Incentive (CBDI) and Strategic Development Incentive (SDI) schemes matter in the CBD’s revival, serving as catalysts for the redevelopment of older buildings in the city. In much the same way, we believe that Marina South – the extension to Singapore’s CBD – will play a pivotal role in transforming our country’s landscape.

The evolution of the CBD

1800s
Singapore’s first commercial district traces its humble beginnings to the early 19th century, where it took shape along the banks of the Singapore River. Strategically located along the Maritime Silk Road, the Singapore River quickly established its presence as one of the important free ports facilitating trades between China, India and Southeast Asia.
During this period, shophouses were built along Boat Quay, Clarke Quay, and Raffles Place to support the thriving trade and growing business community. Banks and related businesses gravitated towards the area, shaping it into Singapore’s first commercial district.

Source: Kouo Shang-Wei Collection, PictureSG, National Library, Singapore

By the early 1900’s, Singapore’s growing importance as a major port led to overcrowding in its commercial district. A lack of urban planning saw shops, houses, and factories all cramped into the same area. This led to issues like road congestion and pollution that gave rise to health and environmental concerns.

This slew of problems prompted the Singapore Government to undertake a major urban renewal program in the 1960’s and 70’s, aimed at creating a more systematic approach towards transforming Singapore’s built environment.
Through the Land Acquisition Act and the Government Land Sales (GLS) or Sale of Sites programme introduced in 1966 and 1967 respectively, the Singapore government was able to address the issues of fragmented land ownership and the need for a more regulated process for land acquisition by the private sector. Together, these changes set the stage for the development of our modern CBD.

Rethinking CBD with modern skyscrapers

With the government’s urban planning efforts laying the foundation, the next phase of development focused on modernising the CBD with high-rise office buildings. Hong Leong Building (1976), OCBC Centre (1976), UOB Plaza (1972) and Singapore Land Tower (1980) were some of the first skyscrapers in Singapore’s CBD that are still standing to this very day.

Far beyond shaping Singapore’s skyline, these office buildings played a pivotal role in meeting the real estate demands essential for supporting the growth of Singapore’s financial centre.

In the early 2000’s, Singapore continued to solidify its status a regional financial hub, leading to a significant increase in demand for office space since. As demand for offices grew, commercial properties have reported a strong growth trajectory amid tight vacancies. These assets have also proven to be valuable investment opportunities for institutional investors and private entities seeking stable returns and long-term capital appreciation.

Beyond offering excellent office infrastructure, the CBD is also supported by an extensive transport network that reaches all parts of Singapore. More importantly, it plays the role of a hub that serves Singapore’s business ecosystem by facilitating networking and trade.

In the 2024 Global Financial Centre Index, Singapore placed fourth out of 133 global financial centres, cementing its status as one of the world’s leading financial hubs. This could drive the demand for more office space within the CBD. With office space in the existing CBD becoming increasingly constrained and demand for sustainable developments rising, Marina South presents a timely expansion for Singapore’s business district.

Marina South: Birth of Singapore’s new sustainable mixed-use neighbourhood

Source: URA

Source: URA

Marina South is set to evolve into a mixed-use residential neighborhood, featuring retail, hotels, offices, and amenities, all within a 10-minute walk. Through the GLS programme, Marina South is currently undergoing a Master Plan transformation in the hands of URA.

In 2023, a consortium led by developer Kingsford Group put in a top bid of $1,402 per square foot per plot ratio (psf ppr) for a site at Marina Gardens Lane, which will be developed into a new residential project. Set to yield approximately 790 units, the development is expected to launch in 2025, thus setting the stage for one of Marina South’s pioneering projects.

Source: Kingsford

Subsequently, in January 2024, a white site at Marina Gardens Crescent received a single bid from a GuocoLand-led consortium at $984 psf ppr. URA rejected the bid, opting instead to hold onto the site for a fair price instead of accepting an undervalued offer.

This decision reaffirms URA’s commitment towards upholding and preserving the value of Singapore’s land.

In Conclusion

As Singapore continues to draw international businesses and talent, Marina South will play a pivotal role in shaping the future of Singapore’s urban landscape. Offering more than just a modern, sustainable, and people-
centric environment that supports our city-state’s economic growth, Marina South also sets the stage for a vibrant new residential district – one that Singaporeans can be the first to call home.

Interested to know more about what the estate offer to prospective homeowners and tenants? Speak to any ERA Trusted Advisor today to find out more!

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