Qingjian Realty And Forsea Holdings Submit Top Bid 1037 Psf Ppr Media Circle Parcel Gls Site
The bidding for the tender of Media Circle (Parcel A), a Government Land Sale (GLS) site located in the one-north area, has finally closed on March 4th. The top bid of $315 million came from a consortium of Qingjian Realty, Forsea Holdings, and minority investor Hoovasun Holding, making them the proud owners of the 99-year leasehold site. The site, which is zoned for residential use with commercial space on the first storey, measures 82,125 sq ft and has a potential yield of about 325 housing units. The maximum gross floor area is estimated to be 303,865 sq ft. In a press statement, Qingjian and Forsea have revealed their plans to feature two high-rise residential towers with commercial spaces on the first level in the future development.
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Media Circle (Parcel A) received a total of three bids, with the Qingjian-Forsea consortium’s bid being 5.7% higher than the next bid of $298 million from EL Development. SingHaiyi Group has submitted the lowest bid of $295 million, making the Qingjian-Forsea consortium the clear winner. However, their bid is lower than the land rate they paid for a neighboring Media Circle GLS plot, which is now the site of the upcoming Bloomsbury Residences with 358 units. In January 2019, the Qingjian-Forsea consortium had acquired the 114,462 sq ft site for $395.28 million or $1,191 psf ppr. “We are confident in the upcoming transformation of Media Circle, supported by a well-designed master plan and the government’s continued investment in the one-north precinct as announced in the 2019 budget,” says Du Dexiang, Managing Director of Qingjian Realty. Wang Xin, Director at Forsea Holdings, also adds, “This project marks another important step in our commitment to developing high-quality residential communities that align with the growth of one-north, which is akin to Singapore’s ‘Silicon Valley’.”
This project marks the third joint venture between Qingjian and Forsea, with the latest one being the executive condominium site at Jalan Loyang Besar, which they were awarded in August 2019. Their bid of $557 million, which translates to $729 psf ppr, was the highest and can potentially yield up to 710 new homes. According to Lee Sze Teck, Senior Director of Data Analytics at Huttons Asia, Qingjian’s latest bid for Media Circle (Parcel A) reflects their confidence in the demand for homes in the area. “If awarded, the developer will have influence over the supply and pricing of new homes in Media Circle,” he adds.
The Media Circle (Parcel A) site was launched for sale in November 2019, together with Media Circle (Parcel B), an adjacent plot that can potentially yield about 500 residences. The tender for Parcel B will close on April 29th. Both Media Circle Parcels A and B are on the Confirmed List of the 2H2019 GLS Programme. Additionally, there’s another Media Circle site available for application under the Reserve List of the 1H2019 GLS Programme. The 60-year leasehold site, with a retail space capped at 4,306 sq ft, is designated for long-stay serviced apartments only and can potentially yield around 520 units.
Home sales in the one-north area are expected to remain robust, given the high number of foreigners working in one-north, Science Park, and the nearby Tanglin Trust School. With the area’s limited supply of non-landed residential properties, there are currently only 987 units, with less than 100 new homes remaining unsold. “The Media Circle area is a unique location within one-north, framed by greenery and black and white bungalows. There are only two precincts with land set aside for homes – one at Slim Barracks Rise and one at Media Circle,” explains Lee.
Knight Frank Singapore’s Head of Research, Leonard Tay, predicts that the Media Circle (Parcel A) project could launch with selling prices starting from $2,300 psf. Although the site is located in a quieter section of the one-north business park, it is within walking distance to Mediapolis. “A residential project, or a mix of residences for sale together with serviced apartments for lease, could appeal to workers in the media and entertainment industry,” Tay adds.