Developers Shun Residential Site Near Singapore’s One North Amid Growing Uncertainty

The latest tender for a residential plot in Singapore’s One-North R&D hub closed Tuesday with no bids, as economic jitters and the site’s own negatives proved a deal-breaker for the city-state’s cautious developers.

The Urban Redevelopment Authority announced the news in a release after having launched the tender for Media Circle Parcel B five months ago. The site, which can yield 500 homes, is the first tendered plot under the Government Land Sales programme to receive zero bids since last June, when an exercise for the northern region’s Upper Thomson Road (Parcel A) fell flat.

Several factors could explain the lack of interest in Media Circle Parcel B after two nearby sites were recently awarded, including the plot’s distance from the MRT system and proximity to a highway interchange, said Wong Siew Ying, head of research and content at local broker PropNex Realty.

“In addition, developers may also have been more cautious in acquiring development sites, given that the evolving US trade tariffs situation may bring greater uncertainty to the global economy,” Wong said. “Developers are likely to be more selective, gravitating towards plots that have excellent location attributes, such as being near to the MRT station and amenities, as well as schools.”

Media Circle’s Mixed Bag

The last GLS site awarded in Media Circle was Parcel A in March of this year, with the winning bid representing a rate of S$1,037 ($791.71) per square foot of built area. Another plot just north of Parcel A was awarded in February 2024 for S$1,191 per square foot and is now under development as Bloomsbury Residences. Both sites were won by consortiums led by China’s Qingjian Group.

A fourth Media Circle site was not awarded last year after a sole bid of S$461 per square foot by Frasers Property was deemed too low. That plot, like Upper Thomson Road (Parcel A), included a requirement for construction of long-stay serviced apartments. The site has been placed on the GLS reserve list for the first half of this year.

Tricia Song, head of research for Singapore at CBRE, said builders were likely also discouraged by the lacklustre launch performance this month at Bloomsbury Residences, which sold 90 units (25 percent of the project’s total) at an average price of S$2,474 per square foot.

“In addition, there is still ample new supply and potential competition from the remaining unsold inventory at existing launches Blossoms by the Park (275 units) and The Hill @ One-North (142 units), which are located nearer to the One-North MRT station and are 93 percent and 46 percent sold respectively,” Song said.

Troublesome Tariffs

Huttons Asia CEO Mark Yip said the tariffs may have made developers more circumspect and selective of sites despite the level of unsold units in the market having dropped to a low of 18,270 units at the end of March.

The tariffs are not expected to return to zero and will likely lead to higher consumer costs, which in turn could trigger interest rate hikes to tackle inflation, Yip said, adding that the economic backdrop may be influencing market sentiment at the moment.

“There may be more clarity in the next three months as negotiations kick off and confidence will return after that,” he said.