SINGAPORE (EDGEPROP) - The government land sales (GLS) residential site at Media Circle closed on September 19 with only one bid of $120.09 million or $461 psf per plot ratio (ppr). The bid was submitted by a consortium led by Singapore-listed property group Frasers Property with Padawan MC and Empire One North Property.

The site within District 5’s one-north is zoned for long-stay serviced apartments (at least three months’ stay) with commercial use on the first storey. It occupies 62,046 sq ft and has a maximum gross floor area of 260,605 sq ft. It has a 60-year lease and is expected to yield 520 units.

The Media Circle site is the first GLS residential site released for sale that is fully zoned for long-stay serviced apartments.

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The site is close to Mediapolis, the headquarters of Mediacorp, the headquarters of companies such as Grab, Razer and Equinix data centre. Schools nearby include the British international school Tanglin Trust School, INSEAD and the National University of Singapore.

Mark Yip, CEO of Huttons Asia says that tenant demand has always been strong in one-north. However, he notes the lack of enthusiasm from developers for long-stay serviced apartments. “This may indicate that the market is not yet ready to embrace this product. This could be due to the higher risks of building an untested product and longer time to recoup the capital,” he observes.

Wong Siew Ying, head of research and content at PropNex says the muted interest for the site may be due to its location that is not particularly near any MRT station. “Developers may also anticipate more private residential developments to be built in the Media Circle area, providing more options for renters,” Wong adds.

The upside for developers, she notes, is that the long-stay serviced apartments offer recurring income and are not subject to the five-year additional buyer’s stamp duty deadline.

The last residential GLS site in Media Circle was sold in February to a joint venture between Chinese developers Qingjian Realty and Forsea Holdings for $395 million ($1,191 psf ppr). The site occupies 114,462 sq ft and is zoned for residential use with commercial use on the first floor. It is expected to yield up to 355 units.