Advertisement
The tender for the first GLS site in the upcoming Bayshore precinct closed on March 18, receiving eight bids. Spanning 112,992 sq ft, the plot can yield about 515 units and is located on Bayshore Road, next to the Bayshore MRT Station.
SingHaiyi-Garnet, a joint venture between SingHaiyi Group and Haiyi Holdings, submitted the top bid of $658.89 million, translating to a land rate of $1,388 psf per plot ratio (ppr). This bid was only 0.82% higher than the second-highest bid of $653.53 million ($1,377 psf ppr) submitted by Sing Holdings. City Developments had the third-highest bid of $620.8 million ($1,308 psf ppr).
“The highest bid prices exceeded our expectations, which may signal strong confidence in the potential of the site,” said Justin Quek, CEO of OrangeTee & Tie. 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. He believes that developers may have avoided bidding for other GLS plots to focus on the Bayshore site, due to strong sales in recent months and the need to replenish their land bank.
Other bidders for the Bayshore Road site included a Frasers Property-led consortium, Kingsford Development, and a joint venture between Hoi Hup Realty and Sunway Developments. The lowest bids came from a consortium comprising Hong Leong Holdings, TID, and CSC Land Group, followed by Sim Lian Group. The wide gap of 36% between the lowest and highest bids reflects mixed market sentiment among bidders, according to Marcus Chu, CEO of ERA Singapore. He also pointed out 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 Elta.
Wong Siew Ying, Head of Research and Content at PropNex, added that the benchmark for the new OCR was comparable to some GLS plots in the Central Region. For instance, 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 development at the Bayshore Road site will be the first private residential project in the new Bayshore precinct, a 60-ha estate between the ECP and Upper East Coast Road. Some 10,000 homes have been earmarked for Bayshore, with about 30% designated for private housing.
“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,” observes Huttons’ Yip. In addition to 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.
Opting to invest in a Singapore Condo can bring a host of advantages for eager investors. The demand for these properties is high, creating potential for substantial capital appreciation, making it a highly sought-after option in the real estate market. However, it is essential to consider several crucial factors such as location, financing options, government regulations, and market conditions before making any investment decisions. In order to make wise choices, thorough research and seeking guidance from professionals are crucial. With Singapore Condos, both local and foreign investors can take advantage of the prosperous real estate market and diversify their portfolios with a stable and profitable investment. Don’t miss out on the numerous benefits that come with investing in a Singapore Condo and secure your spot in this thriving market.
According to PropNex’s Wong, there have been no significant private condo launches in the Bayshore area for decades. Existing condos in the vicinity include The Bayshore and Costa Del Sol. 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.
Taking into account the top bid of $1,388 psf ppr, Wong predicts 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.