Drawing eight offers, the tender for the first private housing Government Land Sale (GLS) property in the forthcoming Bayshore district concluded on March 18. Beside the Bayshore MRT Station on Bayshore Road, the 99-year leasehold land is Comprising 112,992 square feet, the land can produce around 515 units.
With a combined offer of $658.89 million, SingHaiyi-Garnet—a joint venture between SingHaiyi Group and Haiyi Holdings—the Celine and Gordon Tang-owned companDrawing eight offers, the tender for the first private housing Government Land Sale (GLS) property in the forthcoming Bayshore district concluded on March 18. with most investment in SingHaiyi—translates a land rate of $1,388 psf per plot ratio.
Just 0.82% higher than the second-highest offer of $653.53 million ($1,377 psf ppr), SingHaiyi’s proposal is Some 5.3% behind Sing Holdings’ proposal, City Developments had the third-highest bid of $620.8 million ($1,308 psf ppr). “The highest bid prices submitted exceeded our initial expectations, which may indicate strong confidence in the potential of this site,” notes OrangeTee & Tie CEO Justin Quek.
The largest number of proposals received for a private housing GLS site since January 2022, when a Jalan Tembusu plot—now the location of Tembusu Grand—also drew eight bids, observes Mark Yip, CEO of Huttons Asia. He thinks developers could have refrained from competing for other GLS sites to seek the Bayshore location. “The great sales for the past few months have also raised developers’ need to restitute their land bank,” he says.
Other visitors to the Bayshore Road property include a combined venture between Hoi Hup Realty-Sunway Development and Kingsford Development under Frasers Property. The tenderers sent in proposals ranging from $1,252 psf pr to $1,285 psf pr.
Following Sim Lian Group at $485 million ($1,252 psf pr), the two lowest offers came from a consortium including Hong Leong Holdings, TID and CSC Land Group at $500.68 million ($1,055 psf ppr).
Comments Marcus Chu, CEO of ERA Singapore, the large discrepancy of 36% between the lowest and highest offers submitted for the Bayshore Road property indicates the diverse market attitudes among the bidders involved. He also underlines that SingHaiyi’s bid of $1,388 psf ppr sets a new benchmark for Outside Central Region (OCR) land prices, surpassing the previous threshold of $1,250 psf paid by MCL Land and CSC Land Group for the site of the recently-launched Elta, situated at Clementi Avenue 1.
The head of research and content for PropNex, Wong Siew Ying, notes that the new OCR standard surpasses several GLS plot land prices in the Central Region. 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 pr respectively, Zion Road Parcels A and B in the Rest of Central Region were awarded last year at $1,202 psf ppr and $1,304 psf ppr respectively.
Situated between East Coast Parkway (ECP) and Upper East Coast Road, the 60-ha estate known as Bayshore Road site will be the first private residential development in the newly created Bayshore area. About 10,000 houses have been set aside for Bayshore, about 30% for individual residences.
“[The Bayshore Road GLS site] is most likely the best site in the Bayshore precinct since it provides a sea view and doorstep access to Bayshore MRT Station,” says Yip of Huttons. Apart from several new facilities built in the neighbourhood, the area gains from long-term development plans including the Long Island coastal protection project, which will add parks and reservoirs fronting the Bayshore area, claims Leonard Tay, head of research for Knight Frank Singapore.
Wong of PropNex claims that for decades the Bayshore region has not seen any noteworthy private condo developments. Among the current condominiums in the area are Costa Del Sol, which went on sale in 2000, and The Bayshore, which debuted in the 1990s.
As a result, the region could have pent-up demand for fresh private property, including demand from HDB upgraders in the surrounding Marine Parade and Bedok estates, Wong notes. “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-moved advantage in that area,” she notes.
Considering the maximum offer of $1,388 psf, she projects average selling price of nearly $2,600 psf in future construction at the Bayshore Road site. Knight Frank’s Tay, meanwhile, thinks the project’s pricing would start around $2,700 psf and average at $2,800 psf.
