The first private housing Government Land Sale (GLS) site in the upcoming Bayshore precinct has closed on March 18, receiving a total of eight bids. Located on Bayshore Road next to the Bayshore MRT Station, the 99-year leasehold site spans 112,992 sq ft and can yield about 515 units.
The top bid of $658.89 million was submitted by SingHaiyi-Garnet, a joint venture between SingHaiyi Group and Haiyi Holdings, the Celine and Gordon Tang-controlled entity that holds a majority shareholding in SingHaiyi. This translates to a land rate of $1,388 psf per plot ratio (ppr), just 0.82% higher than the second-highest bid of $653.53 million ($1,377 psf ppr) from Sing Holdings. City Developments submitted the third-highest bid of $620.8 million ($1,308 psf ppr), which was 5.3% lower than Sing Holdings’ bid.
CEO of OrangeTee & Tie, Justin Quek, remarks that the highest bid prices exceeded initial expectations, possibly indicating strong confidence in the potential of the site. Mark Yip, CEO of Huttons Asia, notes that the number of bids received is the highest for a private housing GLS site since January 2022, when a Jalan Tembusu plot (now the site of Tembusu Grand) also received eight bids. He believes that developers may have held back from bidding for other GLS plots to focus on the Bayshore site and its potential. He adds, “The strong sales for the past few months have also increased the need for developers to replenish their land bank.”
Other bidders for the Bayshore Road site include a Frasers Property-led consortium, Kingsford Development, and a Hoi Hup Realty-Sunway Developments joint venture. The bids submitted ranged between $1,252 psf ppr and $1,285 psf ppr. The two lowest bids were from a consortium comprising Hong Leong Holdings, TID, and CSC Land Group at $500.68 million ($1,055 psf ppr) and Sim Lian Group at $485 million ($1,022 psf ppr).
ERA Singapore CEO, Marcus Chu, comments on the significant gap of 36% between the lowest and highest bids, reflecting mixed market sentiments among the bidders. He also points out that SingHaiyi’s bid of $1,388 psf ppr sets a new benchmark for Outside Central Region (OCR) land prices, surpassing the previous threshold of $1,250 psf ppr paid by MCL Land and CSC Land Group in November 2023 for the site of the recently-launched Elta, located at Clementi Avenue 1.
Head of research and content at PropNex, Wong Siew Ying, adds that the new OCR benchmark rivals some GLS plot land rates in the Central Region. Last year, Zion Road Parcels A and B in the Rest of Central Region were awarded at $1,202 psf ppr and $1,304 psf ppr, respectively, while Holland Drive and River Valley Green (Parcel A) sites in the Core Central Region sold for $1,285 psf ppr and $1,325 psf ppr, respectively.
The future project at the Bayshore Road site will be the first private residential development in the new Bayshore precinct, a 60-ha estate situated between East Coast Parkway (ECP) and Upper East Coast Road. This area has been earmarked for about 10,000 homes, with 30% designated for private housing.
CEO of Knight Frank Singapore, Leonard Tay, notes that the new project has a sea view and doorstep access to Bayshore MRT Station, making it the most favorable site in the Bayshore precinct. He adds that it will also benefit from long-term development plans, including the Long Island coastal protection project that will add reservoirs and parks to the Bayshore area.
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PropNex’s Wong says that there have been no significant private condo launches in the Bayshore area for decades, with only two existing condos, The Bayshore in the 1990s and Costa Del Sol in 2000. This may result in pent-up demand for new private housing, including demand from HDB upgraders in the nearby Marine Parade and Bedok estates. “Riding on the recent positive sales momentum in the primary market and the anticipation of healthy home buying interest for the future Bayshore project, it is no wonder that developers were eager to secure this GLS tender, possibly hoping to gain a first-mover advantage in the area,” she adds.
Taking into account the top bid of $1,388 psf ppr, Wong estimates that the future development at the Bayshore Road site could see an average selling price of over $2,600 psf. Meanwhile, Tay believes prices could start from $2,700 psf and average above $2,800 psf.