Qingjian Realty, China Communications Construction defend turf in one-north
Their joint venture tops bids for Media Circle (Parcel A), at about S$1,037 psf ppr, 13% below what they paid for opposite plot last year
China Communications Construction Company’s unit Forsea Residence and Qingjian Realty are defending their turf in the Mediapolis area of the one-north precinct.
Their consortium placed the top bid for a second 99-year leasehold private housing site, Media Circle (Parcel A), in the locale at a state tender that closed on Tuesday (Mar 4).
Zoned residential with commercial at first storey, the plot can yield about 325 private homes. The commercial component is capped at 4,306 square feet gross floor area.
This time, their bid of S$1,036.64 per square foot per plot ratio (psf ppr) is about 13 per cent below the S$1,191 psf ppr they paid for a site across the road early last year.
For the latest bid, Qingjian and Forsea Residence took in a partner, Hoovasun Holding, which is fully owned by Singapore citizen Zhang Song, who has shareholdings in a string of Singapore-incorporated companies involved with the construction and related businesses.
Their bid for Media Circle (Parcel A) is about 5.7 per cent above the second-highest offer, of about S$981 psf ppr, from EL Development, at Tuesday’s tender. The only other bid, from a SingHaiyi Group and Haiyi Holdings tie-up, was close to S$971 psf ppr.
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The tender earlier last year for the first plot also drew three bids.
The nearly S$1,037 psf ppr top bid for Media Circle (Parcel A) is at the lower end of the S$1,000 to S$1,250 psf ppr forecast by most analysts polled by The Business Times earlier this week. However, the three offers received are at the higher end of the one to three bids the analysts expected.
Reflecting caution
Observers described the tender result as a reflection of caution and selectiveness among developers.
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This is partly due to the specific locale, which is more than 1 km from the closest MRT station, the one-north station on the Circle Line, according to Wong Siew Ying, head of research and content at PropNex.
Tricia Song, head of research for South-east Asia at CBRE, said: “The lack of HDB upgraders in the locality, comprehensive amenities such as schools, childcare, large retail malls, hawker centres/coffee shops makes this location less attractive to local owner-occupiers.”
She also pointed to other comparables in the vicinity: Slim Barracks Rise Parcels A & B which were sold in 2021 for S$1,246 psf ppr and S$1,210 psf ppr, respectively, or 20 per cent and 17 per cent higher than the top bid for Media Circle (Parcel A). “These two sites are closer to one-north MRT station. They drew 10 bids each at a time when market sentiment was better, prior to multiple rounds of cooling measures.” The two Slim Barracks Rise plots are also near the Buona Vista MRT station.
Projects on these two sites – the 275-unit Blossoms by the Park and The Hill @ One-North (with 142 units) – have since been launched.
Another reason for the muted response at Tuesday’s tender is that developers may be wary of the ample new supply and potential competition from Qingjian and Forsea’s soon-to-be-launched Bloomsbury Residences project, with more than 350 units, on the Media Circle plot they bagged last year, added Song. Also, there is unsold inventory remaining at Blossoms by the Park and The Hill @ One-North.
On top of that, the state tender for Media Circle (Parcel B), which can generate about 500 private homes, closes next month, on Apr 29.
There is also a long-stay serviced apartment site diagonally opposite Media Circle (Parcel A) that was not awarded last year and is now on the reserve list of the government land sales programme. “The plot could be triggered for sale or brought back into the confirmed list in future,” noted Song.
Wait-and-watch approach
All things considered, developers probably decided to wait for more plum sites that they will be able to bid for in the coming months at state tenders.
These include residential sites next to the Bayshore MRT station and near the Lorong Chuan and Lentor MRT stations. A commercial and residential site next to Hougang MRT station is also slated to be launched in May.
“Some developers may be keeping their powder dry for sites in established residential areas, rather than those in business zones,” said Knight Frank Singapore research head Leonard Tay.
The one-north research hub and business centre, master planned by JTC, focuses on knowledge-intensive activities in growth sectors such as the biomedical, info-communications and media industries.
The Urban Redevelopment Authority has envisaged Media Circle (Parcel A) as a way to inject vibrancy into the estate and bring homes closer to the workplaces and education institutions within one-north.
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