tender
On March 18, the tender for the first private housing Government Land Sale (GLS) site in the upcoming Bayshore precinct closed, attracting eight bids. Situated next to the Bayshore MRT Station, the 99-year leasehold site is located on Bayshore Road and spans 112,992 sq ft, with the potential to yield approximately 515 units.
The top bid of $658.89 million, translating to a land rate of $1,388 psf per plot ratio (ppr), was submitted by SingHaiyi-Garnet, a joint venture between SingHaiyi Group and Haiyi Holdings (a Celine and Gordon Tang-controlled entity that holds a majority shareholding in SingHaiyi). This bid was just 0.82% higher than the second-highest bid submitted by Sing Holdings, which put in a bid of $653.53 million ($1,377 psf ppr). City Developments also participated in the tender, submitting a bid of $620.8 million ($1,308 psf ppr), 5.3% lower than Sing Holdings’ bid. Justin Quek, CEO of OrangeTee & Tie, remarks that the highest bid prices received have exceeded initial expectations, potentially indicating a strong confidence in the site’s potential.
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, and that the strong sales in recent months have increased the need for developers to replenish their land banks.
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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 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). Marcus Chu, CEO of ERA Singapore, notes that the sizable 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 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 this new OCR benchmark rivals the land rates of some GLS plots in the Central Region. In 2024, 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. About 10,000 homes have been earmarked for Bayshore, with 30% designated for private housing. Huttons’ Yip observes that the site is probably the best in the Bayshore precinct as it offers a sea view and doorstep access to Bayshore MRT Station. In addition to various new amenities that will be constructed in the neighborhood, 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, says Wong. 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 little wonder that developers were out in droves for this GLS tender – perhaps also hoping to gain a first-mover advantage in that area. 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.