The first private housing Government Land Sale (GLS) site in the upcoming Bayshore precinct saw a total of eight bids when the tender closed on March 18. The 99-year leasehold site, located on Bayshore Road next to the Bayshore MRT Station, spans 112,992 sq ft and is estimated to yield around 515 units.
SingHaiyi-Garnet, a joint venture between SingHaiyi Group and Haiyi Holdings, submitted the highest bid of $658.89 million, translating to a land rate of $1,388 psf per plot ratio (ppr).The bid was just 0.82% higher than the second-highest bid of $653.53 million ($1,377 psf ppr) submitted by Sing Holdings. City Developments placed third with a bid of $620.8 million ($1,308 psf ppr), which was 5.3% lower than Sing Holdings’ bid. “The highest bid prices exceeded our initial expectations, which could indicate strong confidence in the site’s potential,” said Justin Quek, CEO of OrangeTee & Tie.
Mark Yip, CEO of Huttons Asia, noted that the number of bids received was the highest for a private housing GLS site since January 2022 when the Jalan Tembusu plot, now the site of Tembusu Grand, also attracted eight bids. He believes that developers may have held back on bidding for other GLS plots to pursue the Bayshore site due to its potential. “The recent strong sales have increased the need for developers to add to their land bank,” he added.
Other tenderers for the Bayshore Road site included a Frasers Property-led consortium, Kingsford Development, and a Hoi Hup Realty-Sunway Developments joint venture. These bidders submitted bids ranging between $1,252 psf ppr to $1,285 psf ppr.
The two lowest bids came from a consortium comprising Hong Leong Holdings, TID, and CSC Land Group at $500.68 million ($1,055 psf ppr), followed by Sim Lian Group at $485 million ($1,022 psf ppr). This 36% difference between the lowest and highest bids reflects the mixed market sentiments among participating bidders, according to Marcus Chu, CEO of ERA Singapore. He also highlighted that SingHaiyi’s bid set a new benchmark for Outside Central Region (OCR) land prices at $1,388 psf ppr, surpassing the previous record of $1,250 psf ppr set by MCL Land and CSC Land Group in November 2023 for the site of the recently-launched Elta at Clementi Avenue 1.
Wong Siew Ying, PropNex’s head of research and content, added that this new OCR benchmark was comparable to the land rates of some GLS plots 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 the 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. Around 10,000 homes have been designated for Bayshore, with 30% of them planned for private housing.
“The Bayshore Road GLS site is probably the best site in the Bayshore precinct as it offers a sea view and doorstep access to Bayshore MRT Station,” observed Huttons’ Yip. In addition to new amenities being constructed in the area, it stands to benefit from long-term development plans like the Long Island coastal protection project, which will add reservoirs and parks fronting the Bayshore area, said Leonard Tay, Knight Frank Singapore’s head of research.
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PropNex’s Wong noted that there have been no significant private condo launches in the Bayshore area for decades. Existing condos in the vicinity include The Bayshore and Costa Del Sol, which launched in the 1990s and 2000, respectively. As such, there may be pent-up demand for new private housing in the area, including 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 homebuying interest for the future Bayshore project, it is little wonder that developers were eager for this GLS tender, perhaps also hoping to gain a first-mover advantage in that area,” she added.
Based on the top bid of $1,388 psf ppr, Wong predicts that the future development at the Bayshore Road site could see an average selling price of over $2,600 psf. Meanwhile, Knight Frank’s Tay believes prices at the upcoming project could start from $2,700 psf and average above $2,800 psf.