First Gls Site Bayshore Draws Eight Bids Singhaiyi Puts Top Bid 1388 Psf Ppr
The recent tender for the first private housing Government Land Sale (GLS) site in the upcoming Bayshore precinct closed on March 18 with a total of eight bids received. The 99-year leasehold site, located on Bayshore Road next to the Bayshore MRT Station, spans 112,992 sq ft and has the potential to yield about 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 company controlled by Celine and Gordon Tang who hold a majority shareholding in SingHaiyi. This 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 submitted the third-highest bid of $620.8 million ($1,308 psf ppr), 5.3% lower than Sing Holdings’ bid.
Justin Quek, CEO of OrangeTee & Tie, remarked that the highest bid prices received surpassed their initial expectations, which could be a sign of the strong confidence in the potential of the site. 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 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 significant gap of 36% between the lowest and highest bids received for the Bayshore Road site reflects the mixed market sentiments among participating bidders, commented Marcus Chu, CEO of ERA Singapore. He also highlighted that SingHaiyi’s bid of $1,388 psf ppr set a new benchmark for Outside Central Region (OCR) land prices, beating the previous record 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, added that this new OCR benchmark rivaled 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 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 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. In addition to the 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, adds Leonard Tay, Knight Frank Singapore’s head of research.
PropNex’s Wong notes that 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. “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,” she adds.
Taking into account the top bid of $1,388 psf ppr, she 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.
