The Urban Redevelopment Authority (URA) has just closed the tender for a land parcel zoned for Long Stay Serviced Apartment (SA2) use at Media Circle. The site was launched for tender on 30 May 2024, and can yield around 520 SA2 units. This site will be the first to fully offer SA2 units within the development.
The number of bidders was below our expectations, with just one bid submitted. The sole bid came from FCL Land Pte. Ltd., Padawan MC Pte. Ltd. and Empire One North Property Pte. Ltd. at a bid price of S$120,088,888, or approximately S$461 psf ppr.
The SA2 model is still largely untested, as only one site with a smaller SA2 component at Zion Road (Parcel A) was sold earlier this year. There were no bids for a site at Upper Thomson (Parcel A) which had an SA2 element as well, which may reflect some hesitation on this new residential model. Moreover, there are already a handful of hospitality-related developments in Queenstown, including a serviced apartment at Citadines Fusionopolis, co-living space at lyf@one-north, and the hotel Citadines Connect Rochester which are nearer to public transport options, retail, and dining establishments compared to this site. Coupled with the shorter 60 years lease, these factors may have been priced into the sole submitted bid.
Nonetheless, being located within the one-north business precinct, and being in close proximity to NUH, NUS, and the Science Park business area, may provide some demand for the future SA2 apartments here, especially with the plans to establish even more business spaces in the vicinity. The small commercial element at the 1st storey of this development may also add some amenities to the future residents here and in the vicinity.