The government recently launched two sites for developers to bid on, located in the Media Circle and Margaret Drive areas, with a total of 980 residential units. This move has garnered widespread attention, especially for the Margaret Drive site, which is highly regarded for its prime location and development potential.
Spanning 5,764 square meters with a 60-year lease, the Media Circle site is the first to be designated solely for the construction of long-stay serviced apartments. Adjacent to Mediapolis at one-north, it has a maximum gross floor area of 24,211 square meters, allowing for an estimated 520 long-stay serviced apartment units to be built. Mr. Jack Chua, CEO of ERA Singapore, indicated that this site may primarily attract developers with expertise in operating serviced apartments or partnerships with experienced operators.
Ms. Wong Siew Ying, Head of Research and Content at Propnex, believes that the Media Circle site is primarily appealing to developers with experience in the hotel industry. She predicts that there may be up to two bidders, with bidding prices ranging from $220 million to $261 million, equivalent to $850 to $1,000 per square foot. Meanwhile, Mr. Steven Tan, CEO of OrangeTee & Tie, holds a more optimistic view of the site, anticipating two to three bidders with bidding prices ranging from $1,000 to $1,100 per square foot.
In contrast, the Margaret Drive site with a 99-year lease is more favored by the market. Located near Queenstown Primary School, it occupies 9,522 square meters with a maximum gross floor area of 39,994 square meters, allowing for the construction of 460 private residential units. Market observers generally believe that this site, due to its proximity to the MRT station and major commercial areas, is expected to attract bids from two to five parties.
shicheng.news
Mr. Tan pointed out that the Margaret Drive area has seen no new projects launched since 2018, and pent-up demand may have formed. Coupled with the resilience of resale prices for Queenstown HDB flats, with several units selling for over a million dollars, it demonstrates the desire of local residents for property upgrades. He expects the price per square foot for this site to range between $1,200 and $1,300.
Ms. Wong believes that the site's moderate size and the number of units to be built are appealing to developers. She expects bids from two to three parties, with the highest bid ranging from $474 million to $517 million, equivalent to $1,100 to $1,200 per square foot.
Mr. Chua emphasized that the site's proximity to major commercial and creative hubs, such as one-north, Science Park, Alexandra, and the Central Business District, makes it highly attractive to investors.
The bidding deadlines for the two sites are August 1 (Margaret Drive site) and September 19 (Media Circle site), with developers required to submit their proposals before then. The launch of these two sites signifies new development hotspots in the future Singapore real estate market, attracting more investor attention.
While the Media Circle site is positioned for long-stay serviced apartments and may attract fewer bidders, its prime location and long-term leasing potential should not be underestimated. With the ongoing development of Mediapolis, the increasing working population in the vicinity will drive demand for long-stay serviced apartments.
On the other hand, the Margaret Drive site is highly favored by homebuyers and investors due to its prime location and excellent educational resources. Its proximity to Queenstown Primary School and the MRT station's convenience make it a prime location with immense future development potential.
