Government Land Sale (GLS) Site Analysis – Bayshore Road

Government Land Sale Site Analysis – Bayshore Road 

URA has launched the tender for the Government Land Sale (GLS) parcel at Bayshore Road. The tender for sale closed at 12 noon on 18 March 2025.

 

Site Details 

Table 1: Details of Bayshore GLS Site

Source: URA

 

Map of Bayshore Road

Source: URA, ERA Research and Market Intelligence

 

Site and Locational Attributes

This Bayshore Road site will be the first development in the new Bayshore estate. This gives both the developer and buyers the first-mover’s advantage. It will also be the development located nearest to Bayshore MRT Station. Moreover, units facing East Coast Park could have unobstructed sea views. Such homes can command a price premium.

 

Masterplan

Bayshore will be a new housing estate, planned as an extension of Bedok town. It is located along East Coast Park, with two MRT Stations (Bayshore and Bedok South) within the estate. Designated as a car-lite district, there will be a transit proximity corridor that acts as a community spine with sheltered walkways and cycling paths. The entire estate will inject approximately 10,000 new homes, of which around 30% is meant for private housing.  Bayshore is zoned as a car-lite precinct.

The Masterplan for Bayshore area is set to enhance overall connectivity and increase the availability of amenities in the area for residents, both existing and new. As a new estate, there will be smart and sustainable features, while the living environment will encourage active lifestyles and healthy living.

The plot is the first private residential site in the up-and-coming Bayshore precinct and an inaugural project under the Bayshore Master Plan.

 

Transport and Connectivity

The Bayshore MRT Station will serve residents, located just across the road. Being on the Thomson-East Coast Line (TEL), commuters can travel directly to Marina Bay, Orchard, Upper Thomson and Woodlands.

For drivers, there is direct access to major roads such as the East Coast Parkway (ECP) Expressway which directly connects to central Singapore within a 15-minute commute time and Changi Airport.

Additional cycling networks will be developed in-line with the government’s vision to develop a car-lite neighbourhood, while connecting Bayshore with Round Island Route and the upcoming corridor from East Coast Park to Changi Beach.

 

Amenities

Residents can also look forward to new commercial and community facilities, park spaces and convenient access to East Coast Park.

In the future, once the estate is developed, there will be a variety of amenities such as shops, eateries, supermarkets, and medical and health facilities. Sports and recreational facilities, as well as resting spots, will also be provided.

Families with children may appreciate the site’s convenient location in proximity to a variety of educational institutions within 2km.

 

Table 2: Schools within 2km of the Bayshore Road site

Source: Google Maps, ERA Research and Market Intelligence

By 2026, another three stations (Bedok South, Sungei Bedok and Xilin) will be completed. This will provide residents with rail access to the Singapore University of Technology and Design (SUTD), the only university in the east.

 

Price and Market Trends

From 2020 to 2024 September, the median price psf of non-landed homes in Bayshore, District 16 and OCR have increased by 29.7%, 30.5% and 24.7% respectively. The growth in all areas are relatively paced at the same rate, with District 16 leading the increase in prices.

 

Table 3: Prices and Rents of All Private Homes in the Vicinity

Source: URA as at 24 October 2024, ERA Research and Market Intelligence

However, prices in District 16 could have been propped up by new launches in the area, whereas median prices in Bayshore are based on recorded resale transactions given the lack of new projects.

 

Potential Demand/Buyer Profile

With the Bayshore area being largely undeveloped since existing projects launched more than two decades ago, the addition of 515 out of an estimated 3,000 new private homes leads major initiatives in rejuvenating the area.

The site could also potentially attract HDB upgraders given that an estimated 2,012 flats will also fulfil their MOP within the next two years. The median price of 5-room and 4-room flats of less than 15 years transacted in Bedok at $976,500 and $815,000 respectively from January 2024, which could contribute to the down payment for a new home in Bayshore.

The Bayshore area is located in proximity to numerous private landed housing enclaves, such as the Kew and Sennett Estates. Demand could come from the sizable population of landed home owners, with older owners seeking to right-size their homes, or from larger families who want to live in the same project.

The last new launch at Siglap Road (Seaside Residences) in April 2017 saw 70% of  released units sold at launch. With 60% of the buyers identified from the East, the new launch with an attractive location and pricing highlights the pent-up demand in the area.

Buyers who see owning a private property as a long-term investment may see this Bayshore development as a viable option. Although future HDB estates nearby in Bayshore are likely to be classified as Plus, they could still generate upgrader demand. This provides a potential exit strategy in the future, as they could then right-size if they choose to.

While we can expect strong demand for this estate, developers having a strategic unit mix will be crucial for Bayshore Road’s eventual developer to address the diverse needs of different buyer segments. This includes catering to investors seeking rental opportunities, landed property owners right-sizing from nearby enclaves like the Kew and Sennett estates, and families (including HDB upgraders) relocating from nearby Tampines and Bedok.

With the right unit mix and pricing, we can expect the future development to be poised to draw significant buyer interest from aspiring first-movers, as well as upgraders. Homeowners from the many nearby projects, which are at least 20 years old, may consider moving to a brand-new development with the same locational attributes and a refreshed lease.

 

Multitude of Opportunities to be Leveraged on by Developers

Older condos along East Coast Parkway have significant en bloc potential, however, they could be unsuccessful due to the development’s large size. Previous en-bloc efforts of Laguna Park have failed, with the most recent tender in 2019 at $1.48 billion closing with no applicants. Mandarin Gardens had also failed to secure the required 80% threshold. A successful en bloc launch of the development could have seen reserve price of $2.88 billion ($953 psf ppr).

The last GLS site along East Coast Parkway at Siglap Road (Seaside Residences) was awarded at $624 mil ($858 psf ppr) to the highest of eight bids in 2017. The site’s premium location boasting the unique characteristic of sea views could have attracted developers to contend for the site.

Bayshore Road site is one of the more attractive sites on the 2024 GLS Confirmed List. Having observed lukewarm responses for previous sites, developers could have withheld bids to attempt competing for Bayshore.

The palatable size of the development could also be an attractive attribute for smaller developers, which they can leverage on to place competitive bids with lower risks.

 

Developers Could Compete for First-Mover Advantage in New Township

The Bayshore Road site marks the first GLS site in Bedok since 2020 and Bayshore area since 1997, highlighting the scarcity of new private residential homes. Given its prime location next to an MRT station, developers could be more willing to fork out a premium to secure the attractive site.

 

Table 4: Existing Developments in Bayshore

Source: URA as of 16 December 2024, ERA Research and Market Intelligence

 

The upcoming Bayshore estate also draws similarities to the township development in Lentor whereby new launches in the area consecutively set the bar for future launch prices. It will be in the developers’ best interest to leverage on first-mover advantage in penetrating the market for private residential homes in Bayshore.

The wave of new launches in November garnered overwhelming response. Emerald of Katong achieved a record-high with 99% of the development sold, along with Chuan Park with 76% sales during its launch weekend. This strong indication of homebuyer optimism could translate to strong developer confidence in future GLS performance.

 

Conclusion

The Bayshore Road GLS site attracted strong developer interest, with eight bidders competing in a highly competitive round. Sing-Haiyi Garnet had the highest bid of $658.8 million ($1,388 psf ppr), narrowly edging out the next highest bidder by 0.8%.

Despite headwinds faced by developers in the market, the Bayshore site is one of the land parcels many developers have been waiting for this year. The site’s allure and expected pent-up demand from buyers could give them confidence and provide the impetus for the aggressive bidding. Moreover, the plot’s palatable size could be draw for smaller-scale developers which resulted in the strong interest.

While bids amongst the top four bidders were aggressive, with a difference of 8%, there was a significant 35.9% gap between the lowest and highest bids. This reflects mixed market sentiments and the buying appetite of future buyers. Nonetheless, this site sets a new OCR land price benchmark, surpassing previous records in Clementi (now Elta) while being similar to Toa Payoh (now The Orie) in the RCR.

 

Disclaimer

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