Singapore’s GLS policy may help stabilise residential market; private home prices forecast to rise 5% in 2024 Updated:Tender for first private housing site in Bayshore precinct draws strong response.The tender for the first private housing site in the Bayshore precinct closed on March 18, attracting a total of eight bids. The 99-year leasehold site, located on Bayshore Road next to the Bayshore MRT Station, covers a land area of 112,992 square feet and has a potential yield of about 515 units.SingHaiyi-Garnet, a joint venture between SingHaiyi Group and Haiyi Holdings, emerged as the top bidder with a bid of $658.89 million. This translates to a land rate of $1,388 per square foot per plot ratio (psf ppr). SingHaiyi’s bid was just 0.82% higher than the second-highest bid of $653.53 million (or $1,377 psf ppr) submitted by Sing Holdings. City Developments came in third with a bid of $620.8 million (or $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,” explained Justin Quek, CEO of OrangeTee & Tie. According to Mark Yip, CEO of Huttons Asia, the number of bids received for this private housing GLS site is the highest since January 2022, when another site in Jalan Tembusu (which is now Tembusu Grand) also received eight bids. He believes that developers may have held back from bidding for other GLS sites in order to pursue the Bayshore site. “The strong sales over the past few months have also increased the need for developers to replenish their land bank,” he added.Other bidders for the Bayshore Road site include a consortium led by Frasers Property, Kingsford Development, and a joint venture between Hoi Hup Realty and Sunway Developments. Their bids ranged from $1,252 to $1,285 psf ppr. The two lowest bids came from Hong Leong Holdings, TID, and CSC Land Group at $500.68 million (or $1,055 psf ppr), followed by Sim Lian Group at $485 million ($1,022 psf ppr).The significant difference of 36% between the lowest and highest bids reflects the mixed market sentiments among participating bidders, according to Marcus Chu, CEO of ERA Singapore. He also pointed out that SingHaiyi’s bid sets a new benchmark for Outside Central Region (OCR) land prices at $1,388 psf ppr. This surpasses 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, head of research and content at PropNex, added that this new OCR benchmark is comparable to the land rates of some GLS sites in the Central Region. For instance, Zion Road Parcels A and B in the Rest of Central Region were awarded at $1,202 and $1,304 psf ppr respectively last year, while the Holland Drive and River Valley Green (Parcel A) sites in the Core Central Region sold for $1,285 and $1,325 psf ppr respectively.The upcoming project at the Bayshore Road site will be the first private residential development in the new Bayshore precinct, a 60-hectare estate situated between East Coast Parkway (ECP) and Upper East Coast Road. About 10,000 homes have been earmarked for the area, with 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,” said 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, according to Leonard Tay, Knight Frank Singapore’s head of research.According to Wong from PropNex, there have been no significant private condo launches in the Bayshore area for decades. Existing condos in the vicinity include The Bayshore, which 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. “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 added. She predicts that the future development at the Bayshore Road site could see an average selling price of over $2,600 psf, considering the top bid of $1,388 psf ppr. Meanwhile, Knight Frank’s Tay believes prices at the upcoming project could start from $2,700 psf and average above $2,800 psf.