SINGAPORE (EDGEPROP) - URA has launched the tender for a residential site at Media Circle under the Confirmed List of the 1H2024 Government Land Sales (GLS) programme. The tender was launched at the same time as a residential site at Margaret Drive.

The GLS site at Media Circle is within one-north in District 5. The 62,046 sq ft site has a maximum gross floor area of 260,605 sq ft and is designated for long-stay serviced apartments. It is expected to yield 520 units.

According to ERA Singapore CEO Marcus Chu, it is the first site to be entirely designated for long-stay serviced apartments since the new property classification was announced in November last year.

Read also: Government launches tender for mixed-use GLS site at Tampines St 94

Previously, URA launched land tenders for the Upper Thomson Road (Parcel A) and Zion Road (Parcel A) mixed-use residential sites. The Upper Thomson Road site can yield up to 640 units, including 100 serviced apartments, while the Zion Road site can house up to 1170 units, including 435 serviced apartment units.

The  Zion Road (Parcel A) site drew only one bid when its tender closed in April. The tender for the Upper Thomson (Parcel A) site closes in June.

The introduction of serviced apartments with a minimum three-month stay will cater to the high rental demand from expats working in the neighbouring multinational firms, he adds.

The site is close to many biomedical and information technology firms, as well as notable educational institutions, including the British international school Tanglin Trust School and the National University of Singapore.

“As the site is still some distance away from the one-north MRT station, the new serviced apartments will offer convenient, nearby housing for those working in the area,” Chu says.

He expects the site to attract developers with specialised expertise in serviced apartments or have partners that possess the relevant operating capabilities.

Read also: Government releases 19 sites under 2H2024 GLS Programme

The last residential GLS site in Media Circle was sold to a joint venture between Chinese developers Qingjian Realty and Forsea Holdings for $395.29 million ($1,191 psf per plot ratio (ppr)) in February. The 114,462 sq ft site is zoned for residential development with commercial use on the first storey and can yield up to 355 units.

Ngiam Juyong, project director at Huttons Asia, says that since the site may require a longer period to recoup the capital, he anticipates a bid lower than $1,191 psf ppr. “The site may attract a top bid of not more than $1,100 psf ppr and may only get one bid,” he adds.

The benefit of the long-stay serviced apartments is that developers do not have to worry about marketing and selling any residential units or falling foul of the five-year additional buyer’s stamp duty deadline, says Wong Siew Ying, head of research and content at PropNex.

Wong expects the GLS site to draw one or two bids from developers with hospitality experience. She projects the top bid to come in at around $222 million to $261 million, or a land rate of between $850 and $1,000 psf ppr.

Justin Quek, CEO of OrangeTee & Tie, expects two to three bidders for the plot, with the highest bid price ranging from $1,000 to $1,100 psf ppr

The tender for the Media Circle site will close on Sept 19, together with a commercial and residential site at Tampines Street 94.

Read also: Wing Tai Holdings submits top bid of $1,325 psf ppr for residential GLS site at River Valley Green