The recent closure of the tender for the first private housing Government Land Sale (GLS) site in the upcoming Bayshore precinct on March 18 has drawn significant interest from developers, with a total of eight bids being submitted. The 99-year leasehold site, located on Bayshore Road next to the Bayshore MRT Station, spans over 112,992 sq ft and is estimated to accommodate approximately 515 residential units.
SingHaiyi-Garnet, a joint venture between SingHaiyi Group and Haiyi Holdings, which holds a majority shareholding in SingHaiyi, has emerged as the top bidder with a bid of $658.89 million, resulting in a land rate of $1,388 psf per plot ratio (ppr). This bid was only slightly higher than the second highest bid of $653.53 million (or $1,377 psf ppr) submitted by Sing Holdings. City Developments also submitted a bid of $620.8 million (or $1,308 psf ppr), which was 5.3% lower than Sing Holdings’ bid. Justin Quek, CEO of OrangeTee & Tie, remarks that the top bid prices have exceeded initial expectations, indicating strong confidence in the potential of the site.
Mark Yip, CEO of Huttons Asia, notes that the number of bids received for this private housing GLS site is the highest 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 in order to pursue the Bayshore site. He also adds that the strong sales in recent months have increased the pressure for developers to replenish their land bank.
The other tenderers for the Bayshore Road site include a Frasers Property-led consortium, Kingsford Development, and a joint venture between Hoi Hup Realty and Sunway Developments. The bids submitted by these tenderers ranged from $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 (or $1,055 psf ppr), followed by Sim Lian Group at $485 million (or $1,022 psf ppr).
According to Marcus Chu, CEO of ERA Singapore, the significant gap of 36% between the lowest and highest bids received for the Bayshore Road site reflects the mixed market sentiments among participating bidders. He also highlights that SingHaiyi’s bid of $1,388 psf ppr sets a new OCR land price benchmark, 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. Wong Siew Ying, PropNex’s head of research and content, adds that this new benchmark in the OCR rivals the land rates of some GLS plots in the Core Central Region. In 2024, the 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 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 the Bayshore precinct, with 30% designated for private housing. Leonard Tay, Knight Frank Singapore’s head of research, mentions that the area stands to benefit from various new amenities that will be constructed in the neighbourhood, as well as long-term development plans, such as the Long Island coastal protection project, which will add reservoirs and parks fronting the Bayshore area.
Huttons’ Yip also observes that the Bayshore Road GLS site is probably the most desirable site in the Bayshore precinct, as it offers a sea view and is located right next to the Bayshore MRT Station. He also notes that there has been a lack of significant private condo launches in the Bayshore area for decades, with the only existing ones being The Bayshore and Costa Del Sol, launched in the 1990s and 2000, respectively. As a result, there may be pent-up demand for new private housing in the area, including demand from HDB upgraders in the nearby Marine Parade and Bedok estates. PropNex’s Wong predicts that the future project at the Bayshore Road site may see an average selling price of over $2,600 psf, while Knight Frank’s Tay believes prices could start from $2,700 psf and average above $2,800 psf.