Qingjian Realty and Forsea Residence emerged victorious in a government land sale tender for a coveted residential plot in one-north, submitting a winning bid of S$395 million. Despite being lower than some recent nearby bids, the offer reflects Qingjian’s confidence in the demand for homes in the vibrant tech hub.

The joint venture’s bid of S$1,191 per square foot per plot ratio (psf ppr) sits within analyst expectations but is 4.4% lower than the S$1,246 psf ppr paid for a nearby site in 2021. This lower offer, alongside just three bids compared to ten for similar sites the previous year, suggests cautiousness among developers due to rising costs and tighter market regulations.

However, the one-north location remains a draw for buyers and investors. The Media Circle GLS site, with an estimated yield of 355 residential units, is close to key office clusters and offers convenient access to the MRT. This proximity to employment hubs and potential rental income opportunities make the future development appealing, as PropNex head of research Wong Siew Ying points out.

The top bid also indicates continued confidence in one-north’s residential demand. Despite launching after the latest ABSD hike, nearby Blossoms By The Park has sold over 85% of its units, demonstrating strong interest in the area.

While JLL estimates the breakeven cost for the project at around S$2,000 psf, analysts expect launch pricing to be slightly lower than Blossoms By The Park due to its distance from the MRT. This could offer potential buyers a more attractive entry point into the sought-after one-north district.

Key Takeaways:

• Qingjian Realty and Forsea Residence win Media Circle GLS site in one-north with S$395 million bid.
• Offer falls within analyst expectations but lower than recent nearby bids.
• Three bids received, compared to ten for similar sites in 2021, reflecting developer caution.
• One-north location seen as attractive despite high construction costs and cooling measures.

Qingjian’s acquisition of the Media Circle site highlights the enduring appeal of one-north despite a cautious developer landscape. With its prime location and strong potential, the future development is poised to benefit from the thriving tech hub’s continued growth.

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