7 bids for Pasir Ris GLS reserve list site with $1,300 psf ppr top bid
Eight bids have been received for the first private housing Government Land Sale (GLS) site in the upcoming Bayshore precinct, which closed on March 18. The 99-year leasehold site, located on Bayshore Road next to the Bayshore MRT Station, spans 112,992 sq ft and can yield approximately 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 was only 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), which was 5.3% below Sing Holdings’ bid.
Justin Quek, CEO of OrangeTee & Tie, comments that the highest bid prices exceeded initial expectations, which may indicate strong confidence in the potential of this site. 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 (now the site of Tembusu Grand) also drew 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 between $1,252 psf ppr and $1,285 psf ppr, with the two lowest bids coming from a consortium comprising 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).
Marcus Chu, CEO of ERA Singapore, points out the significant gap of 36% between the lowest and highest bids received for the Bayshore Road site, which indicates the mixed market sentiments among participating 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), 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. 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, 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. About 10,000 homes have been earmarked for Bayshore, with 30% designated for private housing.
Huttons’ Yip observes that 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. 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, says Leonard Tay, Knight Frank Singapore’s head of research.
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, which was launched in the 1990s and Costa Del Sol, which hit the market in 2000. 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, Wong says. “[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,” she adds.
Taking into account the top bid of $1,388 psf ppr, she predicts that the upcoming 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.