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(SINGAPORE) There is 310 ha (3.1 million sq m) of land at Marina South - and plans are under way to release it over time.

Minister for National Development Mah Bow Tan said yesterday the Urban Redevelopment Authority (URA) is working with other agencies to seek investor feedback and interesting business concepts and ideas for three sites there.

'We will also identify other sites in the Marina Bay area for office and housing development and release them over time to meet demand,' he said.

The three sites under review are for an international passenger terminal, a public attraction and a possible boutique hotel. No time-frame has been set for the release of the sites.

Speaking at the Singapore Institute of Architects 45th annual dinner, Mr Mah said a site next to the Garden at Marina South and the Marina Bay Sands would be ideal for a boutique hotel. The site will be connected to the integrated resort via walkways and to an adjacent future MRT station.

URA and Singapore Tourism Board (STB) are also studying a site at the southern end of Marina South for an international passenger cruise terminal and, depending on interest from developers, it could be complemented by a hotel, retail and entertainment facilities.

The third site is for a low-rise public attraction like a museum at the promontory in front of the upcoming Business Financial Centre (BFC).

Yesterday's revelations took some property analysts by surprise. 'There was no indication that the government even had these sites in mind,' said Nicholas Mak, director of research and consultancy at Knight Frank. 'Perhaps the authorities are experimenting with a new way to sell land.'

Recalling that the BFC site was initially made available for sale around 1998 but not sold until 2005, Mr Mak said releasing a site that garners no interest could have a negative effect.

He reckons a consultative approach to land sales is positive, but believes the industry, especially developers, would be concerned if it signals that more sites will be put on the confirmed list of the Government Land Sales programme.

Colin Tan, head of research at Chesterton International, said: 'The invitation for concepts is probably the URA's way of helping to decide if it should be more or less prescriptive in their release of sites and as to what can or cannot be done.' But a degree of control is required, Mr Tan said. 'Developers react to profits, and market forces may be such that only a single segment of the market may be adequately catered for. Who is going to cater to the other segments then?'

Notably, the suggested uses for the three sites would likely be less profitable than office or residential development.

Looking at the possible hotel site, Wallace Chu, head of research at Savills Singapore, said there is still huge potential for growth in this sector and the proposed site would suit a high-end branded establishment like the new Armani or Bulgari Hotels. 'We don't expect it to be big competition to the current players in the Marina area,' he added.

As for putting a price on the sites, Mr Chu said: 'The IR is the important factor in determining price movement in the central area for all property sectors. Whatever the price tag for the site, it will factor the effect of the IR.'

The site for the international passenger terminal could have more takers, as Genting International and Star Cruises are already said to be in talks with The Singapore Cruise Centre for such a development.

Based on the increasing number of cruise passengers, Mr Chu even thinks the market can support two terminals - one at Marina South and the other around Sentosa. The promontory is perhaps the least attractive site, and Mr Chu thinks it would be attractive only if the government provided some form of support. This might be developing plot ratio incentives or even financial support. The upcoming Singapore Flyer, where STB is the landlord, could be a possible precedent.

The three sites are, of course, just pieces of a bigger picture. Lui Seng Fatt, regional director (investment sales) at Jones Lang LaSalle, said: 'The equilibrium of supply and demand will not be under threat if the growth projection of tourists' arrival is achieved according to STB's projection and the supply is phased to meet the demand of arrival over time.'

'With all these developments it is logical to expect more sites to be released over time to complete the development of Marina Bay as the future hub of business and entertainment.'

Mr Mah also announced other attractions like the floating platform for next year's National Day Parade and new areas for water sports yesterday. He said: 'Marina Bay is Singapore's city of the future.'