Commentary on URA tender closing at Media Circle Parcel A

By Tricia Song (宋明蔚), Head of Research, Southeast Asia, CBRE

Developers displayed cautious selectiveness, with lukewarm participation observed at the close of today’s URA tender for the residential with commercial at 1st storey site, Media Circle Parcel A (325 units). This is despite the robust showing at January’s new launches and healthy participation with a top bid above expectations for the land parcel at River Valley Green (Parcel B) last month. Developers are likely to remain selective in view of more attractive upcoming sites under the GLS programme, economic uncertainty, heightened construction costs and financing costs.

Media Circle Parcel A 

The plot at Media Circle Parcel A (325 units) drew 3 bids, and a top bid price of $315.00 mil or $1,037 psf ppr, slightly below our expectations, submitted by a consortium between Qingjian Realty, China Communications Construction Co. and Siong Construction & Engineering Pte Ltd, which is seen to be consolidating their foothold in this location.  

This land rate is 13% below the adjacent site at Media Circle (355 units) which also saw 3 bids and was awarded for S$1,191 psf ppr in Feb 2024 to a JV between Qingjian Realty and China Communications Construction Co.

The top bid is 6-7% above the next highest bids submitted by EL Development’s $981 psf ppr and Sing-Haiyi’s $971 psf ppr.  

Another nearby but unawarded site was the pure SA2 site at Media Circle (520 units) on a 60-year leasehold which received 1 bid from a consortium between Frasers Centrepoint Limited, Boustead Projects, Sunray Group Holdings at $461 psf ppr on its tender close in Sep 2024 but was not awarded as the bid was assessed to be too low.

Other comparables in the vicinity include Slim Barracks Parcels A & B which were awarded in Oct 2021 for $1,246 psf ppr and $1,210 psf ppr respectively, 20% and 17% higher than the top bid for Media Circle Parcel A. These sites located closer to one-north MRT drew 10 bids each and were awarded back when market sentiment was better, prior to multiple rounds of cooling measures. Projects on the 2 plots — Blossoms by the Park (275 units) and The Hill @one north (142 units) — have since been launched. Blossoms by the Park launched in Apr 2023, sold 29 units at a median price of $2,562 psf in 2024 and is now 93% sold and The Hill @one north (142 units) launched in Apr 2024, sold 55 units at a median price of $2,595 psf in 2024 and is 41% sold.

The one-north cluster is a non-mature estate without a significant residential catchment but is a strategic research and development (R&D) hub for the biomedical science, infocomm technology, media, and engineering sectors. Such a location would appeal more to expats and young working professionals. The lack of HDB upgraders in the locality, comprehensive amenities such as schools, childcare, large retail malls, hawker centres / coffee shops make this location less attractive to local owner-occupiers.

Developers may also be wary of the ample new supply and potential competition from the sold and yet-to-launch Media Circle site (355 units) which is slated to launch soon as Bloomsbury Residences, as well as the remaining unsold inventory at Blossoms by the Park and The Hill @one north. There is another upcoming plot at Media Circle Parcel B (500 units) currently also up for tender with tender closing on 29 Apr 2025. The earlier unawarded SA2 site has been re-introduced in the Reserve List for 1H 2025 and could be triggered for sale or brought back into Confirmed List in the future.

Given it is a 12-15 min walk away from the nearest MRT station, and at this top bid price of $1,037 psf ppr, we expect the future average launch price of this Media Circle project to be around S$2,350-2,450 psf, lower than $2,562 psf at Blossoms by the Park and $2,595 psf at The Hill @one north which are nearer to the MRT station.