URA launches three sale sites at Media Circle, Bayshore Road

The Urban Redevelopment Authority (URA) unveiled three residential land parcels on November 26, 2024, under the second half of the Government Land Sales (GLS) programme for 2024. These sites include a residential plot on Bayshore Road, as well as two plots at Media Circle (Parcel A and Parcel B), which are zoned for residential use with commercial spaces on the first floor. All three sites are part of the confirmed list.

The 7,629.7-square-meter plot at Media Circle (Parcel A) is expected to yield 325 residential units, with a maximum gross floor area (GFA) of 28,230 square meters. Meanwhile, the 10,027.6-square-meter plot at Media Circle (Parcel B) could accommodate about 500 residential units, with a maximum GFA of 43,119 square meters. The 10,497.3-square-meter plot at Bayshore Road has a maximum GFA of 44,089 square meters and could provide 515 residential units. All three sites are on 99-year leases. These sites are part of a total of 5,050 residential units that will be made available through the confirmed list of the H2 2024 GLS programme.

Mark Yip, CEO of Huttons Asia, anticipates greater interest in the Bayshore Road site, noting its appealing location near the East Coast. He pointed out that this is the first private residential site in the upcoming Bayshore precinct. The most recent GLS site sold along the East Coast was Seaside Residences, which went for S$858 per square foot per plot ratio (psf ppr).

ERA Singapore CEO Marcus Chu mentioned that the Bayshore area remains “largely undeveloped,” and noted that current residents of older developments in the area might consider upgrading to the new units. Additionally, the site could attract HDB upgraders, particularly as around 2,012 flats will fulfill their minimum occupancy period in the next two years. Chu also mentioned that the “palatable size” of the development could appeal to smaller developers, offering them an opportunity to make competitive bids with lower risks.

PropNex CEO Ismail Gafoor pointed out that there might be some pent-up demand from HDB upgraders in nearby Marine Parade and Bedok, given the absence of large private condo launches near the site since the 1990s. He also highlighted the site's proximity to the Bayshore MRT station, which is a key factor for today’s buyers.

Market analysts expect the Bayshore Road site to attract four to six bids, with the top bid ranging between S$500 million and S$570 million, based on a land cost of S$1,050 to S$1,200 psf ppr.

In contrast, the Media Circle sites are likely to see a more muted response, with just one to three bids expected. Chu noted that the location of the Media Circle parcels is less attractive compared to other nearby sites in the one-north area, which benefit from better transportation and amenities. For instance, Blossoms by the Park is a five-minute walk from the Buona Vista MRT station, while the nearest amenities to Media Circle are within a 2-km radius, requiring a longer commute. Chu believes developers may prefer the Lentor Gardens site, which has less competition and will be the last GLS site in that area.

Between the two Media Circle parcels, Chu feels developers are likely to prefer Parcel A due to lower developmental risks and reduced capital costs. Yip also noted that the staggered closing dates for the Media Circle parcels would allow developers to monitor interest in the area and adjust their tender bids accordingly, potentially ensuring a well-spaced supply of new homes.

The tender for the Media Circle (Parcel A) site closes on March 4, 2025, while the Media Circle (Parcel B) site tender will close on April 29, 2025. The tender for the Bayshore Road plot will close on March 18, 2025.