Qingjian Realty joint venture tops the bids for Media Circle

Bids submitted for Media Circle were significantly higher than that of the GLS’s other site, which was only offered Thursday (18th Jan). One bid was received for the Marina Gardens Crescent, a prime white site. The offer came from a GuocoLand/Hong Leong Group Consortium at S$770.5M or S$984psfppr.

Today’s result of the tender shows that developers are more cautious about large sites, and tend towards smaller plots. They do this to minimize risks in a market which is uncertain and marked by increasing costs and shrinking profitability margins.

Smaller sites need a smaller capital outlay. This allows developers to minimize costs, mitigate risks and stay agile.

This could be a result of a continuous fear of taking risks among developers due to high interest rates, macroeconomic headwinds as well as cooling measures.

Qingjian Realty and Forsea Residence came out on top in the bids for a residential lot in one-north, winning with a S$395,000,000 bid.

Media Circle can provide 355 residential homes, with a commercial unit on the top floor. The 99 year leasehold site in the Rest of Central Region is 10632.1 sqm with a gross floor area maximum (GFA) 30834 sqm.

The bid was within expectations but 4.4 per cent less than the S$1,246 psf ppr EL Development received for a similar site at Slim Barracks where they are building Blossoms In The Park.

The Hill@One North is expected to be constructed on a plot of land that was paid for by Gao Xiuhua. The sites for both condominiums are in Slim Barracks. Both were sold in 2020.

The bids made by Qingjian and Forsea Residence fall within the S$1,050-1,250 psf range expected by most analysts surveyed by The Business Times. Most market observers expected to see up to six offers.

Developers are confident in One-North demand, as reflected by the high bidder on Media Circle.

Pinetree Hill Pricing

Blossoms, launched after the April 2014 increase to Additional Buyer’s stamp duty (ABSD), has sold 74.5 percent or 205 apartments of its 275 at a S$2,427 median price psf.

This unit has already sold more than 85% of the total number.

Those working at Science Park, or those looking to rent out apartments in this employment hub could find that the future development is attractive.

In 2021 both Slim Barracks sited attracted ten bids each.

Qingjian jointly venture’s S$1,191psfppr offer for Media Circle site was closely matched by the S$385million bid (S$1,160psfppr) from another joint venture between Intrepid Investments and Hong Leong Holdings.

CEL Development’s and Singhaiyi Property Development’s joint bid was S$321m, or S$967psfppr.

Break-even cost for the latest project may be S$2,000/sqft. Analysts anticipate that the price of launch could be in the range of S$2,300-2,400 psf. This will be lower than Blossoms In The Park due its distance to MRT.

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