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CDL, MCL Land jointly tender for site in Tengah Digital District
The recent tender for a 99-year private housing Government Land Sale (GLS) site in the upcoming Bayshore precinct has attracted strong interest, with a total of eight bids being submitted by the closing date on March 18. The highly sought-after plot, located on Bayshore Road next to the upcoming Bayshore MRT Station, spans 112,992 sq ft and is expected to yield around 515 residential units.
SingHaiyi-Garnet, a joint venture between SingHaiyi Group and Haiyi Holdings, submitted the top bid of $658.89 million, which translates to a land rate of $1,388 per square foot per plot ratio (ppr). This bid was just 0.82% higher than the second-highest bid of $653.53 million (or $1,377 psf ppr) submitted by Sing Holdings. The third-highest bid of $620.8 million (or $1,308 psf ppr) was submitted by City Developments, which was 5.3% lower than Sing Holdings’ bid. Justin Quek, CEO of OrangeTee & Tie, notes that the highest bid prices exceeded initial expectations, indicating strong confidence in the site’s potential.
Mark Yip, CEO of Huttons Asia, states 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 refrained from bidding on other GLS sites in order to focus on the Bayshore site. “The strong sales in recent months have also increased the need for developers to replenish their land bank,” he adds.
Other bidders for the Bayshore Road site included a consortium led by Frasers Property, Kingsford Development, and a joint venture between Hoi Hup Realty and Sunway Developments. The bids submitted by the various parties ranged from $1,252 psf ppr to $1,285 psf ppr. The two lowest bids were submitted by a consortium consisting of Hong Leong Holdings, TID, and CSC Land Group 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 significant 36% gap between the lowest and highest bids received for the Bayshore Road site reflects mixed market sentiments among potential bidders. He also highlights that SingHaiyi’s bid of $1,388 psf ppr sets a new benchmark for land prices in the Outside Central Region (OCR), 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, head of research and content at PropNex, adds that this new OCR benchmark rivals the land rates of some GLS sites in the Core 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 on the Bayshore Road site will be the first private residential project in the new Bayshore precinct, which is a 60-hectare estate situated between East Coast Parkway (ECP) and Upper East Coast Road. Around 10,000 homes have been designated for the Bayshore area, with approximately 30% of them allocated for private housing.
Huttons’ Yip observes that the Bayshore Road GLS site is likely the best site in the Bayshore precinct, given its sea views and doorstep access to Bayshore MRT Station. Additionally, the neighborhood will benefit from various new amenities, as well as long-term development plans such as the Long Island coastal protection project, which will add reservoirs and parks in the Bayshore area, according to Leonard Tay, Knight Frank Singapore’s head of research.
PropNex’s Wong notes that there have been no significant private condo launches in the Bayshore area for decades. Existing condos in the vicinity include The Bayshore, 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, the experts say. “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,” adds Wong.
Based on the top bid of $1,388 psf ppr, Wong predicts that the future development on the Bayshore Road site could fetch an average selling price of over $2,600 psf. Meanwhile, Knight Frank’s Tay estimates that prices at the upcoming project could start from $2,700 psf and average above $2,800 psf.