Lukewarm bid for Media Circle site highlights developer caution

The site only attracted three bids.

The URA tender for the residential with commercial at 1st storey site, Media Circle Parcel A attracted only three bids, highlighting cautious selectiveness amongst developers, analysts say.

Tricia Song, CBRE Head of Research for Singapore and Southeast Asia, said 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 may also be wary of the ample new supply and potential competition from the sold and yet-to-launch Media Circle site 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,” Song said.

Leonard Tay, Head, Research at Knight Frank Singapore said 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 zone

In contrast, Mark Yip, CEO at Huttons Asia, said the bids reflect the developer's confidence in demand for homes in this unique location.

“If awarded, the developer will have influence over the supply and pricing of new homes in Media Circle. Developers are drawn to this unique location with lush greenery and the colonial black & white bungalows,” Yip said.

Justin Quek, CEO, of OrangeTee & Tie, the three bids for the plot ‘may be considered quite healthy’. He cited that the highest bid was from CNQC Realty (Bloomsbury) Pte. Ltd., Forsea Residence Pte. Ltd. and Hoovasun Holding Pte. Ltd. at a bid price of $315m or around $1,037 psf ppr. This was 5.7% higher than the next highest bid from EL Development Pte Ltd, which was $298m or around $981 psf ppr.

“However, the bid prices were beneath our initial expectations, and also lower than the land rate of the previous neighbouring site,” Quek said.

Wong Siew Ying, Head of Research and Content at PropNex agreed with Quek that bids seem to be lower than other nearby GLS site.

“The measured tender response may be partly due to the site being some distance from the MRT station. The closest MRT station is the one-north station on the Circle Line which is over 1 km from the plot. In addition, there are not many primary schools nearby which may potentially weigh on homebuying interest from families with young children. That being said, we think a thriving R&D sector in one-north and the government’s commitment towards investing and strengthening R&D infrastructure may benefit new housing in Media Circle,” Wong said.