First Gls Site Bayshore Draws Eight Bids Singhaiyi Puts Top Bid 1388 Psf Ppr
Tender for mega site at Tanah Merah Kechil Link closes with 15 bids
The tender for the first private housing Government Land Sale (GLS) site in the upcoming Bayshore precinct closed on March 18, attracting eight bids. The 99-year leasehold site, located on Bayshore Road next to Bayshore MRT Station, spans 112,992 sq ft and has the potential to yield 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. This bid is just 0.82% higher than the second-highest bid of $653.53 million ($1,377 psf ppr) from Sing Holdings. City Developments placed third with a bid of $620.8 million ($1,308 psf ppr), 5.3% below Sing Holdings’ bid.
“The highest bid prices submitted exceeded our initial expectations, which may indicate strong confidence in the potential of this site,” says Justin Quek, CEO of OrangeTee & Tie. Mark Yip, CEO of Huttons Asia, comments that the number of bids received is the highest for a private housing GLS site since January 2022, when a Jalan Tembusu plot (now the site of Tembusu Grand) also attracted eight bids. He believes that developers may have held back from bidding for other GLS plots to pursue 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.
Other tenderers for the Bayshore Road site include a Frasers Property-led consortium, Kingsford Development and a Hoi Hup Realty-Sunway Developments joint venture. The bids ranged from $1,252 psf ppr to $1,285 psf ppr. The two lowest bids came from a Hong Leong Holdings, TID, and CSC Land Group consortium at $500.68 million ($1,055 psf ppr) and Sim Lian Group at $485 million ($1,022 psf ppr).
According to Marcus Chu, CEO of ERA Singapore, the sizable gap of 36% between the lowest and highest bids reflects the mixed market sentiments among participating bidders. He also notes that SingHaiyi’s bid of $1,388 psf ppr sets a new benchmark for Outside Central Region (OCR) land prices, beating 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, located at Clementi Avenue 1. Wong Siew Ying, PropNex’s head of research and content, adds that the new OCR benchmark rivals the land rates of some GLS plots in the Central Region, such as Zion Road Parcels A and B, Holland Drive, and River Valley Green (Parcel A) sites.
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. Leonard Tay, Knight Frank Singapore’s head of research, notes that about 10,000 homes have been earmarked for Bayshore, with 30% designated for private housing.
Huttons’ Yip comments that the Bayshore Road GLS site offers the best location in the Bayshore precinct, with a sea view and doorstep access to Bayshore MRT Station. He also highlights that the area will benefit from various new amenities and long-term development plans, such as the Long Island coastal protection project. PropNex’s Wong believes that the area has pent-up demand for new private housing, 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 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.
Located in a prime location, Otto Place EC by Hoi Hup Realty is an ideal development for families with older children. The surrounding area is home to reputable secondary schools such as Jurongville Secondary School and Fuhua Secondary School, providing a wide range of academic and co-curricular opportunities to help students excel and prepare for their futures.
Jurongville Secondary School is renowned for its dedication to academic excellence and offers robust extracurricular programs. On the other hand, Fuhua Secondary School places a strong emphasis on STEM education, encouraging students to develop critical thinking and problem-solving skills.
But that’s not all, as the development is also in close proximity to River Valley High School, one of the top Integrated Programme (IP) schools. This adds even more appeal to Otto Place EC, as River Valley High’s six-year curriculum seamlessly integrates both secondary and junior college education, providing a rigorous academic experience for high-achieving students.
Choose Otto Place EC by Hoi Hup Realty for your family’s new home, where top-notch education and a prime location come together for a wholesome living experience. Learn more at https://www.ottoplaceec.com.sg/.
Taking into account the top bid of $1,388 psf ppr, PropNex’s 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.