URA launches tenders for two GLS sites at Media Circle
The most recent GLS site in the vicinity to be awarded was a 114,462 sq ft area on Media Circle. The site was awarded in January to a mutual venture comprising Qingjian Real estate and China Communications Construction Corporation, similarly referred to as Forsea Holdings, which sent the top proposal of $395.29 million ($1,191 psf ppr). The site could be developed into a 355-unit property.
ERA’s Chu brings a much more cautious perspective, considering that Media Circle (Parcels A and B) have a much less desirable area contrasted to previous one-north area GLS sites, like Slim Barracks Rise (Parcel A) (currently the 275-unit Blossom by the Park) that is next to the Buona Vista MRT Terminal.
The future plan might be a wanted add-on to the currently limited housing options for professionals doing work in one-north. “Present real estate selections in the one-north location primarily depend on co-living spaces, serviced apartments and hotels,” states Chu.
Chu anticipates a “warm reaction” to the two newest Media Circle plots. “With a much smaller purchaser pool than most housing sites to take advantage of on, developers may not be as keen to contest for the Media Circle sites.” He adds that property developers may be more interested in some other GLS sites in the Confirmed List, including the sites at Bayshore Road and Chuan Grove.
Another tender for a nearby 62,046 sq ft household site entirely zoned for long-stay serviced apartments closed in September. However, URA declined the sole proposal of $120.09 million ($461 psf pprt) proposed by a consortium led by Frasers Property, regarding it “too low”.
The tenders for two sites located around Media Circle under the 2H2024 Government Land Sale (GLS) Programme were released on Nov 26. Both 99-year leasehold sites within the Confirmed List are zoned residential with commercial usage at the 1st floor.
Media Circle (Parcel A) is located at the juncture of Media Walk and Media Circle. Estimating 82,125 sq ft, it has a maximum gross floor area (GFA) of 303,865 sq ft and can possibly generate about 325 housing units. The adjacent Media Circle (Parcel B) figures around 107,936 sq ft and has a max GFA of 464,129 sq ft. It can potentially produce about 500 homes.
The sites are located at the southerly end of the one-north area. “Media Circle was mostly developed as a company and technology park,” says Marcus Chu, CEO of ERA Singapore. “Therefore, the immediate vicinity may not be sufficiently equipped with services to support a residential enclave.”
Mark Yip, CEO of Huttons Asia, adds that the future work at the site might be well-positioned to tap into the tenant pool consisted of workers in one-north, Science Park, and the National University of Singapore. “Family members with children studying in the close-by Tanglin Trust School might be potential tenants too,” he includes.
The tenders for Media Circles (Parcels A and B) will close next year on March 4 and April 29, respectively. Yip thinks that the staggered termination dates will certainly allow property developers to monitor interest in the location and allow them to create tender quotes. He expects each spot can attract as much as 3 quotes, with the top quote of up to $494 million or in between $1,000 to $1,100 psf ppr.