First Gls Site Bayshore Draws Eight Bids Singhaiyi Puts Top Bid 1388 Psf Ppr

‘s en-bloc sitePrivate condo market could see 20 new project launches of 10,000 units in 2024: Huttons

The first private housing Government Land Sale (GLS) site in the upcoming Bayshore precinct has now closed its tender, receiving a total of eight bids by March 18. This 99-year leasehold site, which spans 112,992 sq ft and is located on Bayshore Road next to the Bayshore MRT Station, is estimated to have the capacity for around 515 units.

The top bid of $658.89 million was submitted by SingHaiyi-Garnet, a joint venture between SingHaiyi Group and Haiyi Holdings, which holds a majority shareholding in SingHaiyi. This bid translates to a land rate of $1,388 per square foot per plot ratio (psf ppr). The second-highest bid of $653.53 million ($1,377 psf ppr) was submitted by Sing Holdings, just 0.82% lower than SingHaiyi’s bid. City Developments secured the third-highest bid of $620.8 million ($1,308 psf ppr), which was 5.3% below Sing Holdings’ bid.

The upcoming Tampines North Hub is set to become a prominent center for community and retail activities, bringing a wealth of amenities and recreational opportunities to residents. The incorporation of new parks and expansion of existing green spaces will further enhance the experience for the community. Adjacent to the hub is the Parktown Residence, a residential development perfectly integrated into the lush green surroundings. This provides residents with the best of both worlds – a bustling hub of dynamic activities, alongside a serene and natural environment. The Tampines North Hub and Parktown Residence harmoniously coexist, promising a thriving and tranquil community. Additionally, the Parktown Residence can be easily accessed at Parktown Residences.

According to Justin Quek, CEO of OrangeTee & Tie, the highest bid prices submitted for this site exceeded initial expectations, indicating strong confidence in its 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 attracted eight bids. He believes that developers may have held back from bidding for other GLS plots to pursue the Bayshore site, as the strong sales in recent 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 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 ($1,055 psf ppr), followed by Sim Lian Group at $485 million ($1,022 psf ppr).

The 36% gap between the lowest and highest bids received for the Bayshore Road site reflects mixed market sentiments among participating bidders, according to Marcus Chu, CEO of ERA Singapore. He also points out that SingHaiyi’s bid of $1,388 psf ppr has set a new benchmark for Outside Central Region (OCR) land prices, surpassing the previous threshold of $1,250 psf ppr paid 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 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 future project on the Bayshore Road site will be the first private residential development in the new Bayshore precinct, a 60-ha estate located between East Coast Parkway (ECP) and Upper East Coast Road. About 10,000 homes have been planned for the Bayshore area, with 30% designated for private housing.

According to Huttons’ Yip, the Bayshore Road GLS site is the best site in the Bayshore precinct as it offers a sea view and doorstep access to Bayshore MRT Station. 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 in the Bayshore area, says Leonard Tay, Knight Frank Singapore’s Head of Research.

PropNex’s Wong says that there have been no significant private condo launches in the Bayshore area for decades. As existing condos in the vicinity, such as The Bayshore (1990s) and Costa Del Sol (2000), are aging, 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. “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-mover advantage in that area,” she adds.

Based on the top bid of $1,388 psf ppr, Wong predicts that the future development on the Bayshore Road site could have an average selling price of over $2,600 psf. Meanwhile, Knight Frank’s Tay believes that prices at the upcoming project could start from $2,700 psf and average above $2,800 psf.