Qingjian Realty-Led Consortium Secures Prime Residential Plot in one-north with S$395 Million Bid

ingjian Realty, in collaboration with 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. The joint venture’s bid, standing at S$1,191 per square foot per plot ratio (psf ppr), signifies a strategic move within anticipated ranges. Despite being 4.4% lower than EL Development’s adjacent site bid, the developers exhibit confidence in one-north’s residential demand.

Key Highlights:

1. Winning Bid Details:
   • Qingjian Realty and Forsea Residence’s joint venture clinched the residential plot with a winning bid of S$395 million, translating to S$1,191 psf ppr.
2. Adjacent Site Comparison:
   • The successful bid, while 4.4% lower than EL Development’s nearby Slim Barracks site for Blossoms By The Park, showcases a calculated approach to the current market dynamics.
3. Market Sentiment:
   • The unexpected higher bids for the Media Circle site, compared to the Marina Gardens Crescent white site, indicate developers’ cautiousness toward larger plots amid market uncertainties, escalating costs, and tighter profit margins.
4. Site Potential:
   • The Media Circle site, situated in the Rest of Central Region, is poised to yield approximately 355 residential units, coupled with commercial spaces on the ground floor. Its strategic location near one-north’s office clusters enhances its appeal.
5. Interest and Expectations:
   • The joint venture’s bid aligns with analysts’ expectations of S$1,050 to S$1,250 psf ppr, although market observers anticipated a higher number of bids, reminiscent of the robust interest in Slim Barracks sites in 2021.
6. Competing Bidders:
   • Competing bids included a joint venture between Intrepid Investments, Garden Estates, and TID Residential, offering S$385 million (S$1,160 psf ppr), and CEL Development and Singhaiyi Property Development, placing a bid of S$321 million (S$967 psf ppr).
7. Breakeven Cost and Launch Pricing:
   • Analysts estimate the breakeven cost for the project to be around S$2,000 psf, with anticipated launch pricing in the range of S$2,300 to S$2,400 psf on average, slightly below Blossoms By The Park.
8. Developer Confidence:
   • The winning bid reflects developers’ confidence in the demand for residences in one-north, with past successes like Blossoms By The Park selling over 85% of its units despite the increased Additional Buyer’s Stamp Duty rates.
9. Strategic Appeal:
   • Proximity to Science Park and one-north positions the future development as an attractive choice for employees in these hubs and investors seeking rental opportunities.

As Qingjian Realty and Forsea Residence secure this prime plot, all eyes are on the forthcoming residential development in one-north, expected to contribute to the evolving landscape of Singapore’s real estate market.

The Business Times