The tender for Parcel A at Media Circle, a prime government land sale (GLS) site located in the bustling one-north area, closed on March 4. The top bid of $315 million was submitted by a consortium comprising Qingjian Realty, Forsea Holdings, and Hoovasun Holding for the 99-year leasehold site, which has been zoned for residential use with commercial space on the first level.
The successful bid by the Qingjian-Forsea consortium translates to a land rate of $1,037 per square foot per plot ratio (psf ppr) for the 82,125 square foot site. It has the potential to yield around 325 housing units, with a maximum gross floor area of 303,865 square feet. According to a press statement by Qingjian and Forsea, the development will comprise of two high-rise residential towers with commercial spaces on the first level.
The site attracted a total of three bids, with the Qingjian-Forsea consortium’s bid being 5.7% higher than EL Development’s next bid of $298 million or $981 psf ppr. The lowest bid of $295 million or $971 psf ppr was submitted by SingHaiyi Group.
However, the top bid by Qingjian-Forsea is lower than the land rate paid for a neighboring Media Circle GLS site by the same partners. In January 2019, Qingjian and Forsea were awarded a 114,462 square foot site for $395.28 million or $1,191 psf ppr, which is now the site for the upcoming 358-unit Bloomsbury Residences.
According to Du Dexiang, managing director of Qingjian Realty, the company is confident in the upcoming transformation of Media Circle, with the government’s continued investment in the one-north precinct, as announced in the 2025 budget. Wang Xin, director at Forsea Holdings, adds that this project marks another milestone in their commitment to developing high-quality residential communities in alignment with the growth of one-north, often referred to as Singapore’s ‘Silicon Valley’.
This will be the third joint venture between Qingjian and Forsea, with the prior two being for residential developments as well. In August 2019, the partners were awarded an executive condominium site at Jalan Loyang Besar after submitting the highest bid of $557 million ($729 psf ppr). This site has the potential to yield up to 710 new homes.
Lee Sze Teck, senior director of data analytics at Huttons Asia, observes that Qingjian’s latest bid for Media Circle (Parcel A) reflects its confidence in the demand for homes in the area. If awarded, the developer will have control over the supply and pricing of new homes in Media Circle, he adds.
The tender for Parcel A was launched for sale in November 2019, along with Parcel B, an adjacent plot measuring 107,936 square feet, which can potentially yield around 500 residences. The tender for Parcel B will close on April 29. Both parcels are on the confirmed list of the 2H 2020 GLS Programme.
In addition, under the Reserve List of the 1H 2025 GLS Programme, there is another Media Circle site available for application. This 60-year leasehold site is zoned for residential with commercial space on the first level and is designated for long-stay serviced apartments, with the potential to yield around 520 units, along with retail space of up to 4,306 square feet.
According to Lee, the Media Circle area is a unique location within one-north, with lush greenery and black and white bungalows framing it. There are only two precincts in the area with land set aside for homes – one at Slim Barracks Rise, and another at Media Circle. He notes that there are currently only 987 non-landed residential units in one-north, with less than 100 new homes still unsold.
Moreover, with a high proportion of foreigners working in one-north, Science Park, and Tanglin Trust School nearby, Lee believes the area offers a strong pool of quality tenants. It is also in close proximity to various retail and dining options such as Anchorpoint Shopping Centre, Alexandra Central Mall, and Timbre+ One North.
Knight Frank Singapore’s Head of Research, Leonard Tay, believes that the future development at Media Circle (Parcel A) could launch with selling prices starting from $2,300 psf. Though it is situated in a quieter section of the one-north business park, it is within walking distance to Mediapolis, making it an ideal location for a residential project or a mix of residences for sale, together with serviced apartments for lease, which could appeal to workers in the media and entertainment industry.