The tender for the first private housing Government Land Sale (GLS) site in the upcoming Bayshore precinct closed on March 18, drawing eight bids. The 99-year leasehold site is located on Bayshore Road, next to the Bayshore MRT Station. Spanning 112,992 sq ft, the plot can yield about 515 units.
SingHaiyi-Garnet, a joint venture between SingHaiyi Group and Haiyi Holdings (the Celine and Gordon Tang-controlled entity that holds majority shareholding in SingHaiyi), submitted the top bid of $658.89 million, translating to a land rate of $1,388 psf per plot ratio (ppr).
SingHaiyi’s bid is just 0.82% more than the second-highest bid of $653.53 million ($1,377 psf ppr) submitted by Sing Holdings. City Developments had the third-highest bid of $620.8 million ($1,308 psf ppr), some 5.3% below Sing Holdings’ bid. “The highest bid prices submitted exceeded our initial expectations, which may indicate strong confidence in the potential of this site,” remarks Justine Quek, CEO of OrangeTee & Tie.
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 attracted eight bids. He believes that developers may have held back from bidding for other GLS plots to pursue the Bayshore site. ‘The strong sales for the past few months have also increased the need [for developers] to replenish their land bank,” he adds.
Other tenderers for the Bayshore Road site include a Frasers Property-led consortium, Kingsford Development and a Hoi Hup Realty-Sunway Developments joint venture. The tenderers 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).
The sizeable gap of 36% between the lowest and highest bids received for the Bayshore Road site reflects the mixed market sentiments among participating bidders, comments Marcus Chu, CEO of ERA Singapore. He also highlights that SingHaiyi’s bid of $1,388 psf ppr sets a new benchmark for Outside Central Region (OCR) land prices, beating 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.
Wong Siew Ying, PropNex’s head of research and content, adds that the new OCR benchmark rivals 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. About 10,000 homes have been earmarked for Bayshore, with some 30% designated 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,” observes Huttons’ Yip. In addition to various new amenities that will be constructed in the neighbourhood, the area also stands to benefit from long-term development plans, such as the Long Island coastal protection project that will add reservoirs and parks fronting the Bayshore area, says Leonard Tay, Knight Frank Singapore’s head of research.
According to PropNex’s Wong, there have been no significant private condo launches in the Bayshore area for decades. Existing condos in the vicinity include The Bayshore, which launched in the 1990s and Costa Del Sol, which hit the market in 2000.
Consequently, the area may have pent-up demand for new private housing, including demand from HDB upgraders in the nearby Marine Parade and Bedok estates, Wong says. “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 out in droves for this GLS tender – perhaps also hoping to gain a first-mover advantage in that area,” she adds.
Taking into account the top bid of $1,388 psf ppr, she predicts 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.
