Penrith Margaret Drive Upcoming New Condo by Guocoland
Penrith Condo SINGAPORE – On May 30, the Urban Redevelopment Authority (URA) launched two residential sites — one at Margaret Drive and another at Media Circle — for sale under the first half of the 2024 Government Land Sales (GLS) programme.
Analysts note that developers are expected to adopt a cautious approach in bidding for these plots, reflecting recent trends amid a cooling property market.
Both sites are part of the confirmed list, which means they are released for sale according to a predetermined schedule, regardless of interest. In contrast, reserve list sites are only made available when a developer submits an acceptable bid.
The 9,522.3 sq m site at Margaret Drive, located in the Queenstown area, is slated to yield approximately 460 private residential units. It has a maximum gross floor area (GFA) of 39,994 sq m, which includes a mandatory 500 sq m allocation for a childcare centre. The site comes with a 99-year lease.
The second parcel, situated along Media Circle in the Buona Vista area, will be launched for tender as a dedicated long-stay serviced apartment development, featuring a commercial component on the ground floor. This site has a 60-year lease.
Covering 5,764.3 sq m with a maximum GFA of 24,211 sq m, the Media Circle plot is expected to accommodate around 520 long-stay serviced apartments. This rental category, introduced in 2023, aims to address short-term housing supply needs.
Of the two sites, Ms Wong Siew Ying, head of research and content at PropNex, anticipates greater interest in the Margaret Drive plot, citing its prime location within a well-established residential estate on the city fringe as a key draw.
Ms Wong also highlighted that this is the first residential site in the area to be launched under the GLS programme since 2017. The previous site was at Stirling Road, where the 99-year leasehold Stirling Residences now stands. That tender attracted 13 bids, with the winning offer exceeding $1 billion and a land rate of $1,051 per sq ft per plot ratio (psf ppr).
ERA chief executive Marcus Chu noted that the Margaret Drive plot Penrith Floor Plans presents “relatively lower development risks for developers” due to its “manageable size and regular shape.”
As a result, market observers expect the Margaret Drive Condo site to attract around three bids, with the top offer ranging between $494 million and $537 million, translating to a land rate of $1,150 to $1,250 per sq ft per plot ratio (psf ppr).
In contrast, the Media Circle site is expected to see subdued interest, likely drawing just one or two bids in the range of $222 million to $261 million, or about $850 to $1,000 psf ppr, according to Ms Wong.
Mr Ngiam Juyong, project director at Huttons Asia, attributed this cautious outlook to the unique requirement for the site to be developed solely as long-stay serviced apartments—a relatively new business model. He noted that such developments typically take longer for developers to recoup their initial investments.
Ms Wong also referenced the recent tender for Zion Road (Parcel A), the Government’s pilot project for this asset class, which attracted only one bid in April—from a City Developments and Mitsui Fudosan partnership—at $1.1 billion, or $1,202 psf of gross floor area.
Despite the slower response, she highlighted some benefits of the new asset type: “In addition to securing recurring rental income, developers are not burdened with selling individual units or meeting the five-year deadline to avoid additional buyer’s stamp duty,” she said.
Mr Justin Quek, CEO of OrangeTee & Tie, added that the Media Circle site could appeal to a large tenant base, including professionals and students in the area. “This could translate into steady rental returns for landlords,” he noted. With upcoming government initiatives to expand business activity in one-north, the area could see a growing workforce.
Mr Marcus Chu also pointed out that many land parcels in one-north are still under more detailed government planning. “We may see more high value-added companies moving into Media Circle, which would further support demand for housing in the area,” he said.