Qingjian Realty joint-venture tops bids on Media Circle with S$395M or S$1,191psf/ppr
Today’s results from the tenders show that developers tend to be more cautious with large sites, and are inclined towards smaller plots as a way to mitigate risk in a market markedly uncertain by rising costs and shrinking profits. A smaller site requires a lower capital investment, which allows developers to remain agile, minimize costs, and mitigate risk.
The highest bidder for the Media Circle Site reflects developer confidence in demand for one-north homes.
Blossoms By the Park was launched in April last year, just after the last increase in Additional Buyers Stamp Duty rates (ABSD). It sold 74.5 percent or 205 units out of its total 275 units for a median price S$2,427/sqf. The company has sold over 85 percent of its units.
Investors and those working in Science Park could find the new development attractive because of its proximity to these employment centers.
Qingjian Realty and Forsea Residence, with a bid of S$395,000,000, won the government land tender for a plot of residential land in one-north. They beat two other groups.
The bid by the joint venture of S$1,191 psf ppr, while in line with expectations, is 4.4 % lower than that paid by EL Development at Slim Barracks for a nearby plot on which they are building Blossoms In The Park.
The plot for The Hill @ One North, which is currently under construction, was purchased by Gao Xiuhua of Kingsford Development at S$1,210 psf ppr. The two condominiums are both located in Slim Barracks. They were sold in the year 2021.
Bids on the Media Circle site were unexpectedly higher than a single bid made for the GLS site that was tendered Thursday (Jan. 18). A GuocoLand/Hong Leong Group group made an offer for the Marina Gardens Crescent White site at S$770.5 Million or S$984 PSF ppr.
Developers continue to be risk averse in the face of high interest rates and macroeconomic headwinds, as well as the cooling measures.
Media Circle in the Rest of Central Region is estimated to yield 355 residential apartments, with commercial spaces on the ground floor. This 99-year leasehold is located near one-north’s office clusters. It measures 10,632.1 sqm and has a maximum permitted gross floor surface (GFA).
The Business Times polled most analysts and found that they expected a bid of between S$1,050 and S$1,250 for a psf. The Business Times polled analysts who expected to see up to six offers.
In 2021, each of the Slim Barracks locations received 10 bids.
Qingjian Joint Venture’s bid of S$1,191 for Media Circle was closely followed with a S$385 Million (S$1,160) bid by a joint-venture between Intrepid Investments(Hong Leong Holdings), Garden Estates(Hong Realty), TID Residential (Hong Leong Holdings & Mitsui Fudosan).
CEL Development & Singhaiyi Property Development jointly bid S$321M, or S$967psfppr.
The latest project’s breakeven cost could be approximately S$2,000 psf. Analysts predict that launch pricing will be between S$2,300-S$2,400 on average psf, a little lower than Blossoms At The Park, due to the distance from MRT.
