BATender for private housing GLS site in Bayshore precinct draws 8 bids
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The recent tender for the first private housing Government Land Sale (GLS) site in Bayshore precinct has closed on March 18, attracting a total of eight bids. Located on Bayshore Road next to the Bayshore MRT Station, the 99-year leasehold site spans 112,992 sq ft and has the potential to yield about 515 units.
Among the bidders, SingHaiyi-Garnet, a joint venture between SingHaiyi Group and Haiyi Holdings, which holds majority shareholding in SingHaiyi, submitted the highest bid of $658.89 million. This translates to a land rate of $1,388 psf per plot ratio (ppr). Sing Holdings came in second with a bid of $653.53 million ($1,377 psf ppr), while City Developments placed third at $620.8 million ($1,308 psf ppr). According to Justin Quek, CEO of OrangeTee & Tie, the high bid prices show strong confidence in the potential of this site.
Mark Yip, CEO of Huttons Asia, notes that this is the highest number of bids received for a private housing GLS site since January 2022, when a Jalan Tembusu plot (now the site of Tembusu Grand) also received eight bids. He believes that developers may have held back from bidding for other GLS sites to focus on the Bayshore site due to its potential. Yip also adds that the strong sales in the past few months have increased the need for developers to replenish their land bank.
Other bidders 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 developers ranged between $1,252 psf ppr to $1,285 psf ppr. The lowest bids were 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).
According to Marcus Chu, CEO of ERA Singapore, the considerable gap of 36% between the lowest and highest bids reflects mixed market sentiments among the bidders. He also highlights 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 ppr paid by MCL Land and CSC Land Group in November 2023 for the site of the recently-launched Elta 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. 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 were 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 between East Coast Parkway (ECP) and Upper East Coast Road, with 10,000 homes earmarked. According to Huttons’ Yip, this site offers a sea view and doorstep access to Bayshore MRT Station. In addition to the new amenities in the neighborhood, it also benefits from long-term development plans, such as the Long Island coastal protection project that will add reservoirs and parks to the Bayshore area.
PropNex’s Wong notes that there have been no significant private condo launches in the Bayshore area for decades, with The Bayshore launching in the 1990s and Costa Del Sol in 2000. She believes that there may be pent-up demand for new private housing in the area, including demand from HDB upgraders in nearby Marine Parade and Bedok estates. Wong also adds that developers were eager to participate in the GLS tender, hoping to gain a first-mover advantage in the area.
Based on the top bid of $1,388 psf ppr, Wong 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.