Qingjian Realty tops Media Circle bids with S$395 million

Bids on the Media Circle site were unexpectedly higher compared to the single bid made for the GLS site Thursday (18 January). A GuocoLand/Hong Leong Group joint consortium made an offer of S$770.5m, or S$984psfppr for the Marina Gardens Crescent prime white site.

The tender results today show that developers prefer smaller plots in an uncertain marketplace marked by rising costs and shrinking profits.

Smaller sites are more cost-effective and allow developers to minimise risks, stay agile, and minimise costs.

This may be due in part to a lack of willingness among developers to take risks, especially given the current macroeconomic environment and high interest rates.

Media Circle is located in Rest of Central Region and can be estimated to have 355 units of residential housing with commercial units on first floor. The 99-year leasehold property is 10.632.1 sqm in size and can have a maximum GFA of 30.834 sqm. It is located close to the one-north clusters.

Qingjian Realty and Forsea Residence were the top bidders in an auction for government land to be sold in One-North, with their S$395million bid. Two other groups came in second and third.

The joint-venture’s bid, which is S$1,191 psf ppr and is within expectations is 4.4 percent lower than the S$1,246 psf ppr paid by EL Development to build Blossoms at The Park on a nearby site in Slim Barracks.

The Hill @ One North will be built on a plot purchased by Gao Xiuhua. Both condominium sites in Slim Barracks were sold by 2021.

Read more: The Hill One North

The bids by Qingjian and Forsea Residence are within the range most analysts polled in The Business Times predicted. However, market observers had expected up to 6 bids.

In 2021, each of the Slim Barracks sites received 10 bids.

Blossoms In The Park has sold a staggering 74.5 percent or 205 out of 275 units. This is at a median cost of S$2,427/sqft.

So far, more than 85 percent of all units have been sold.

Those who rent or work in Science Park and One-North may be interested in the future development because it is close to these employment hubs.

Qingjian’s joint venture’s offer of S$1,191/sqft/ppr for the Media Circle property was closely followed by an S$385m (S$1,160/sqft/ppr) joint bid from Intrepid Investments. (Hong Leong Holdings), Garden Estates. (Hong Realty), TID Residential. (Hong Leong Holdings. Mitsui Fudosan).

CEL Development (the third bidder) and Singhaiyi Property Development (the last bidder) jointly submitted a bid for S$321 Million, or S$967 PSF PPr.

The cost to break even for this latest project is estimated at S$2,000/sq.ft. Analysts estimate that the average launch price will be S$2,300 – S$2,400. This would be slightly less than Blossoms, By The Park’s due to its location away from the MRT.

The developers’ confidence that One-North will be a popular place to live is evident in the top bid on Media Circle.

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