China’s Qingjian, CCCC Make $234M Top Bid for Singapore Residential Site

A joint venture comprising China’s Qingjian Group and a unit of Chinese state-run construction giant CCCC placed the highest bid of S$315 million ($234.4 million) for a residential site in Singapore’s One-North R&D hub, according to public tender results out Tuesday.

The JV, which also included local investor Hoovasun Holding, overcame a S$298 million bid for Media Circle Parcel A by Singaporean builder EL Development and a S$295 million offer from a vehicle led by Gordon Tang’s SingHaiyi, the Urban Redevelopment Authority said.

Qingjian and the CCCC unit, Singapore-based Forsea Residence, last year won a Media Circle plot just north of Parcel A with a bid of S$395.3 million, or S$1,191 per square foot of gross floor area. This time, the partners’ tender for Parcel A came in nearly 13 percent lower at S$1,037. Both sites are zoned for residential with a first-storey commercial section.

The measured tender response to Parcel A could be due to the site’s distance of more than 1 kilometre (0.6 miles) from One-North MRT station and a shortage of primary schools in the area, said Wong Siew Ying, head of research and content at property agency PropNex.

“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.

Proceeding With Caution

Located in western Singapore’s Queenstown area, the 99-year leasehold Media Circle Parcel A can yield 325 private homes and 4,306 square feet (400 square metres) of commercial space. The decision on the tender award is to be announced at a later date.

In addition to Parcel A and the previously awarded site, two other Media Circle plots have been offered via tender under the URA’s Government Land Sales programme.

One site, dedicated to long-stay serviced apartments, was not awarded last year after a sole bid of S$120 million by Frasers Property was deemed too low. The other, Media Circle Parcel B, can yield 500 homes and is open for tender, with the exercise scheduled to close on 29 April.

“Although the market sentiment has improved, we expect developers to continue to be selective and cautious in their site acquisition strategy, keeping in mind the key locational attributes that will eventually drive end-user demand,” Wong said.

Three-Year Dip

Leonard Tay, head of research at Knight Frank Singapore, observed that the top bid for Media Circle Parcel A was 16.8 percent lower than the winning bid of S$1,246 per square foot for Slim Barracks Rise Parcel A and 14.3 percent lower than the winning bid of S$1,210 per square foot for Slim Barracks Parcel B — two nearby sites awarded more than three years ago.

Selling prices at the Media Circle project’s launch could start from S$2,300 per square foot and average S$2,400 per square foot, depending on the design and finishes of the project, Tay said.

He noted that Media Circle Parcel A is in a quieter section of the One-North business park but within walking distance to the Mediapolis production enclave.

“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,” Tay said.