Property Market Signals Amid Trade War Concerns: Developers Play It Safe

Media Circle Parcel B tender draws no bids as developers turn cautious

On 29 April, the Urban Redevelopment Authority (URA) announced that the Government Land Sales (GLS) tender for the Media Circle (Parcel B) site in one-north closed without receiving any bids. This is the fourth land parcel launched for tender within Media Circle in recent years and one of the rare private residential sites to attract zero developer bids, signalling that developers are becoming increasingly selective amidst prevailing macroeconomic uncertainties.

Far from MRT and adjacent to expressway, site lacks locational appeal

Media Circle Parcel B is a 99-year leasehold site zoned for residential with commercial at first storey use, spanning a site area of approximately 107,936 sq ft that can yield around 500 residential units. Market analysts pointed out that the parcel is situated relatively far from MRT stations and sits directly adjacent to an expressway, rendering its location less attractive than the previously sold Parcel A site or the Bloomsbury Residences plot.

In January 2024, Qingjian Realty and Forsea Holdings acquired another Media Circle parcel at $1,191 per square foot per plot ratio (psf ppr), subsequently launching Bloomsbury Residences this month. The project sold 90 units over its launch weekend—a take-up rate of 25.1%—at an average price of $2,474 psf. While the response was decent, there remains unsold inventory in Media Circle across projects including Bloomsbury Residences, The Hill @ One-North, and Blossoms by the Park.

Prudent investment approach as developers keep powder dry for better opportunities

The lack of bids for Parcel B highlights that developers are turning more conservative in the face of global economic uncertainties fueled by trade tensions. Squeezed by high land prices, construction costs, and tax burdens, developers now prefer to preserve capital and prioritise sites with superior attributes and stronger buyer demand.

Even though unsold inventory in the private housing market hovered at a low level of 18,270 units as of the end of March 2025, escalating trade frictions have led developers to exercise greater prudence, refraining from committing capital rashly even within the traditionally sought-after one-north precinct.

Demographics lean towards expatriates, weaker local owner-occupier demand

While the Media Circle site sits within the heart of the one-north innovation and R&D hub, the immediate vicinity lacks an established residential community and essential neighbourhood amenities—such as major shopping malls, hawker centres, coffeeshops, and local schools—making it less appealing to most local families.

The area appeals primarily to expatriate professionals and young white-collar workers, a demographic that accounts for a smaller proportion of overall local home-buying demand.

Implications for the market: developers prioritise location and sales velocity

Previously, the nearby Media Circle Parcel A site was awarded to Qingjian Realty and Forsea Holdings at $1,037 psf ppr, with plans for 325 units, while the Bloomsbury Residences site was awarded at $1,191 psf ppr. The bidless tender for Parcel B marks a watershed in how developers assess a site's marketability and salability.

Looking ahead, analysts anticipate developers will concentrate their resources on bidding for prime sites boasting distinct competitive edges—such as direct MRT connectivity, mature estate locations, or proximity to popular schools. As global economic volatility persists, conservative bidding and highly selective site acquisition will remain the prevailing strategy for developers.