First Gls Site Bayshore Draws Eight Bids Singhaiyi Puts Top Bid 1388 Psf Ppr
ERA continues market share dominance in 2024 by value soldPotential mixed development site at Hillview Rise for sale by tender in 2Q2023
The first private housing Government Land Sale (GLS) site in the upcoming Bayshore precinct has closed on March 18 with 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 is estimated to have 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 (the Celine and Gordon Tang-controlled entity that holds majority shareholding in SingHaiyi). The bid by SingHaiyi-Garnet was only 0.82% more than the second highest bid of $653.53 million ($1,377 psf ppr) that was submitted by Sing Holdings. City Developments submitted the third-highest bid of $620.8 million ($1,308 psf ppr), which was 5.3% lower than Sing Holdings’ bid. Justin Quek, CEO of OrangeTee & Tie, remarks that the highest bid prices exceeded their initial expectations, which could indicate a strong confidence in the potential of this site.
According to Mark Yip, CEO of Huttons Asia, the number of bids received is the highest for a private housing GLS site since January 2022 when a Jalan Tembusu plot, now known as Tembusu Grand, also drew eight bids. He believes that developers may have stayed clear from bidding for other GLS plots to focus on 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.
Apart from SingHaiyi-Garnet, other tenderers for the Bayshore Road site include a Frasers Property-led consortium, Kingsford Development, and a Hoi Hup Realty-Sunway Developments joint venture, who 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).
ERA Singapore’s CEO, Marcus Chu, comments that 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. 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 record of $1,250 psf ppr paid by MCL Land and CSC Land Group for the site of the recently launched Elta, located at Clementi Avenue 1.
PropNex’s Head of Research and Content, Wong Siew Ying, adds that the new OCR benchmark rivals the land rates of some GLS plots in the Central Region. Last year, the 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 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. Approximately 10,000 homes have been designated for Bayshore, with around 30% allocated for private housing.
Huttons’ Yip observes that the Bayshore Road GLS site is possibly the best site in the Bayshore precinct, offering a sea view and doorstep access to Bayshore MRT Station. In addition to the upcoming amenities in the neighbourhood, the area also stands to benefit from long-term development plans such as the Long Island coastal protection project that will bring reservoirs and parks to the Bayshore area, according to Knight Frank Singapore’s head of research, Leonard Tay.
Wong from PropNex 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 was launched in the 1990s, and Costa Del Sol, which hit the market in 2000. As a result, there may be pent-up demand for new private housing in the area, 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 homebuying interest for the future Bayshore project, it is no surprise that developers were out in droves for this GLS tender – possibly also hoping to gain a first-mover advantage in that area,” she adds.
Experience a whole new level of luxurious living at the One Marina Gardens by Kingsford Development, nestled in the heart of Singapore’s Marina Bay. More than just a residential complex, it represents a modern take on urban lifestyle. Boasting an unbeatable location, seamless connectivity, and world-class facilities, it’s the ultimate destination for those seeking the finest in city living. The buzz surrounding One Marina Gardens is undeniable, paving the way for it to become a prominent landmark in Singapore’s real estate scene. With One Marina Gardens Kingsford Huray, residents are guaranteed to indulge in nothing less than the epitome of opulence. Discover the epitome of luxury living at One Marina Gardens Kingsford Huray.
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 that prices at the upcoming project could start from $2,700 psf and average above $2,800 psf.