_Knight Frank Commentary (GLS Tender Closing of Media Circle Parcel A)

Tender Closing for GLS Site

Media Circle

There were three bidders for the Media Circle Parcel A site, signalling that developers remain selective when participating in government tenders. Most developers continue to be mindful of development costs that constitute land and construction costs, as well as taxes, and others might be keeping their powder dry for other sites in established residential areas rather than those in business zones.

The top bid of S$315 million reflects a land rate of S$1,037 psf ppr is about 13% less than the S$1,191 psf ppr for an earlier Media Circle site that was awarded in February 2024 to CNQC Realty (Clementi) Pte. Ltd. (Qingjian Group) and Forsea Residence Pte Ltd, a joint venture that is almost similar in composition to the top bidder, CNQC Realty (Bloomsbury) Pte Ltd, Forsea Residence Pte Ltd and Hoovasun Holding Pte Ltd at today’s tender close. The top bid for Media Circle Parcel A in today’s tender is also about 16.8% lower than the winning bid of S$1,246 psf ppr at Slim Barracks (Parcel A), and around 14.3% lower than the winning bid of S$1,210 psf ppr at Slim Barracks (Parcel B). The tenders for both the Slim Barracks parcels closed on 28 September 2021, and both were awarded on 11 October 2021.

At a land rate of S$1,037 psf ppr, the selling prices at launch could possibly start from S$2,300 psf and average around S$2,400 psf depending on the design and finishes of the project. However, this Media Circle Parcel A is located in a quieter section of one-north business park, but is within walking distance to the specialised media enclave of 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.