The recent competition for the Bayshore GLS site has captured significant attention in the real estate market, showcasing a hotbed of developer interest and strategic bidding. Launched by the Urban Redevelopment Authority on November 26, 2024, this prime plot located at Bayshore Road spans 112,914 square feet, with a maximum gross floor area of 474,247 square feet. The site is projected to yield approximately 515 residential units, making it an attractive proposition for developers eyeing the 10,000 new homes rising East Coast market.
What makes this site even more appealing is its proximity to the Bayshore MRT station, just a stone's throw away, and the convenience of a 15-minute drive to the Central Business District via the East Coast Parkway. With the added allure of potential sea views for some units, it's no wonder that a total of eight bids were submitted by enthusiastic developers. The development is also strategically located near educational institutions, enhancing its overall attractiveness to potential residents.
The SingHaiyi Group emerged as the frontrunner with a remarkable bid of $658 million, translating to a hefty $1,388 per square foot per plot ratio. The second-highest bid, from City Developments, came in at $1,350 psf ppr, creating a nail-biting gap of less than 3%. This competitive bidding occurs despite the government's implementation of various cooling measures aimed at preventing market overheating in Singapore's property sector.
Analysts had initially anticipated only four to six bids, predicting a top bid range between $1,050 and $1,200 psf ppr. However, the actual top bid exceeded expectations by a notable 15.7% to 32.2%. This indicates a strong confidence among developers, despite headwinds in the market.
Comparative transactions in the area show that the recent bids for the Bayshore site reflect a staggering 61.8% premium over previous East Coast land prices. This bold competition sets a new benchmark for future land sales and may trigger price increases for existing properties nearby.
Developers' interest not only speaks to the location's desirability but may also lead to further residential developments in the vibrant Bayshore precinct, symbolizing an undeniable demand for well-positioned residential sites.
