The tender for Media Circle (Parcel A), a Government Land Sale (GLS) site located in the one-north area, closed on March 4 with a top bid of $315 million submitted by a consortium comprising Qingjian Realty, Forsea Holdings, and minority investor Hoovasun Holding. This translates to a land rate of $1,037 psf per plot ratio (ppr) for the 99-year leasehold 82,125 sq ft site, which is zoned for residential use with commercial on the first storey. The potential development can yield about 325 housing units and features two high-rise residential towers with commercial spaces on level 1.
Three bids were received for the site, with Qingjian and Forsea’s bid being 5.7% higher than the next highest bid of $298 million or $981 psf ppr submitted by EL Development. SingHaiyi Group submitted the lowest bid of $295 million or $971 psf ppr.
Despite bidding lower than what they paid for a neighbouring Media Circle GLS plot, which is now the site of the upcoming Bloomsbury Residences, Qingjian and Forsea remain confident in the transformation of the area and its potential for growth.
The upcoming project at Media Circle (Parcel A) will be the third joint venture between Qingjian and Forsea, reflecting their commitment to developing high-quality residential communities in the one-north area, also known as Singapore’s “Silicon Valley”.
The bid by Qingjian also shows confidence in the demand for homes in the area, with the developer having influence over the supply and pricing of new homes in Media Circle if awarded.
When contemplating an investment in a condo, it is crucial to evaluate the potential rental yield as well. Rental yield refers to the annual rental income percentage of the property’s purchase price. In Singapore, condo rental yields can vary significantly depending on factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, offer higher rental yields. Conducting comprehensive market research and seeking advice from real estate agents can provide valuable insights into the rental potential of a specific condo.
In addition to Media Circle (Parcel A), another adjacent plot known as Media Circle (Parcel B) is also up for tender, with the closing date set for April 29. Both Media Circle Parcels A and B are on the Confirmed List of the 2H2024 GLS Programme. There is also another Media Circle site available for application under the Reserve List of the 1H2025 GLS Programme, designated for long-stay serviced apartments only.
Commenting on the unique location of Media Circle, with its greenery and black and white bungalows, Huttons’ Lee Sze Teck predicts strong demand for the future project, as non-landed residential properties in one-north are currently limited to just 987 units. The area also offers a strong pool of quality tenants, given its proximity to one-north business park, Science Park, and the nearby Tanglin Trust School, as well as 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 suggests that the future project at Media Circle (Parcel A) could launch with selling prices starting from $2,300 psf. While it may be located in a quieter section of one-north business park, it is within walking distance to Mediapolis, potentially appealing to workers in the media and entertainment industry.