on the Reserve List
When it comes to investing in real estate, location is key, and this is particularly true in Singapore. In this country, condos located in central regions or close to important conveniences, such as schools, shopping centers, and public transportation hubs, have a higher chance of appreciating in value. Prime areas like Orchard Road, Marina Bay, and the Central Business District (CBD) have consistently shown a rise in property prices. Additionally, the accessibility to top-notch educational institutions makes condos in these areas highly sought after by families, making them a wise investment option. As seen with Singapore Projects, investing in condos in these prime locations can lead to lucrative returns.
Eight bids submitted for first private housing GLS site in Bayshore precinct, top bid by SingHaiyi-GarnetThe first private housing Government Land Sale (GLS) site at the upcoming Bayshore precinct has drawn strong interest, with eight bids submitted before the tender closed on March 18. The 99-year leasehold site, located on Bayshore Road next to the Bayshore MRT Station, spans 112,992 square feet and can yield about 515 units.SingHaiyi-Garnet, a joint venture between SingHaiyi Group and Haiyi Holdings, submitted the top bid of $658.89 million. This translates to a land rate of $1,388 per square foot per plot ratio (ppr). SingHaiyi’s bid is only 0.82% higher than the second-highest bid of $653.53 million ($1,377 ppr) from Sing Holdings. City Developments had the third-highest bid of $620.8 million ($1,308 ppr), approximately 5.3% below Sing Holdings’ bid.According to Justin Quek, CEO of OrangeTee & Tie, the highest bid prices submitted exceeded initial expectations, suggesting strong confidence in the site’s potential. Mark Yip, CEO of Huttons Asia, notes that the number of bids received is the highest since January 2022 when a Jalan Tembusu plot (now the site of Tembusu Grand) also received eight bids. He believes that developers may have held back from bidding for other GLS plots to pursue the Bayshore site. Yip adds that ongoing strong sales have increased the need for developers to replenish their land bank.Other bidders for the Bayshore Road site include a Frasers Property-led consortium, Kingsford Development, and a Hoi Hup Realty-Sunway Developments joint venture. Bids ranged from $1,252 ppr to $1,285 ppr. The two lowest bids came from a consortium comprising Hong Leong Holdings, TID, and CSC Land Group at $500.68 million ($1,055 ppr), followed by Sim Lian Group at $485 million ($1,022 ppr).Marcus Chu, CEO of ERA Singapore, notes that the 36% gap between the lowest and highest bids received for the Bayshore Road site reflects mixed market sentiments among bidders. Chu also highlights that SingHaiyi’s bid of $1,388 ppr sets a new benchmark for Outside Central Region (OCR) land prices, surpassing the previous threshold of $1,250 ppr 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 compares favourably with some GLS plots’ land rates in the Core Central Region. Zion Road Parcels A and B in the Rest of Central Region were awarded at $1,202 ppr and $1,304 ppr last year, while the Holland Drive and River Valley Green (Parcel A) sites in the Core Central Region sold for $1,285 ppr and $1,325 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 located 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, according to Leonard Tay, Knight Frank’s head of research, while Wong observes that there haven’t been any significant private condo launches in the Bayshore area for decades. Existing developments in the vicinity include The Bayshore, launched in the 1990s, and Costa Del Sol, which hit the market in 2000.Wong says that there could be pent-up demand for new private housing in the area, including from HDB upgraders in the nearby Marine Parade and Bedok estates. She expects similar positive sales momentum in the primary market and healthy home buying interest for the future Bayshore project, with prices at the upcoming project starting from $2,700 and averaging over $2,800 per square foot. Tay concurs and predicts that prices could start from $2,700 psf and average above $2,800 psf.