The government land sale (GLS) tender for a prime site along Bayshore Road in Singapore closed on March 18, 2025, drawing significant interest from property developers and setting a record land price for a 99-year leasehold site in the suburbs. The plot, located adjacent to Bayshore MRT station and capable of yielding approximately 515 private homes, attracted eight bids, demonstrating developers' confidence in the site's potential and the recovering sentiment in the private housing market.

Fierce Bidding and Record Land Price

The highest bid of S$658.9 million came from a consortium comprising SingHaiyi Group and Haiyi Holdings, part of the Gordon and Celine Tang business empire. This translates to S$1,388 per square foot per plot ratio (psf ppr), exceeding analysts' expectations of S$1,000 to S$1,400 psf ppr. The competition was intense, with the second-highest bid by Sing Holdings coming in at S$1,377 psf ppr, just 0.8% lower. Other notable bids included City Developments at S$1,308 psf ppr, while the lowest bid of S$1,022 psf ppr came from a partnership between Sim Lian Land and Sim Lian Development.

This level of participation is the highest seen in a GLS tender for a private residential site since January 2022, when a plot in Jalan Tembusu also garnered eight bids. 

Benchmark Land Price for Suburban Sites

At S$1,388 psf ppr, the Bayshore Road site now holds the record for the highest land price achieved for a suburban site at a state tender, surpassing the previous benchmark of S$1,250 psf ppr set in November 2023 for a site in Clementi Avenue 1. The bid even exceeded recent land rates for residential plots in more central regions. For instance, Zion Road Parcels A and B in the Rest of Central Region (RCR) fetched S$1,202 psf ppr and S$1,304 psf ppr, respectively, while Core Central Region (CCR) plots in Holland Drive and River Valley Green (Parcel A) were awarded at S$1,285 psf ppr and S$1,325 psf ppr, respectively.

This trend indicates a diminishing price gap between different market segments, with developers placing greater emphasis on site attributes rather than strict regional classifications.

Strong Location and Demand Drivers

The Bayshore Road site boasts several compelling attributes that contributed to the strong bidding interest:

• Excellent Connectivity: Located adjacent to Bayshore MRT station on the Thomson-East Coast Line, providing seamless transport links. The site is also near the East Coast Parkway, enhancing accessibility for private vehicle owners.
• Proximity to Amenities: The site is within 1 km of Temasek Primary School, a sought-after educational institution. Additionally, a future mixed-use development above Bedok South MRT station, just one stop away, will enhance retail and lifestyle offerings.
• Scenic Views: Certain units in the future development are expected to enjoy waterfront views of East Coast Park, adding to the site’s appeal.
• Pent-Up Demand: The Bayshore area has seen limited new private housing launches since the 1990s, with Costa Del Sol being the last major project in 2000. This suggests strong demand from HDB upgraders in nearby estates such as Marine Parade and Bedok.

The most recent comparable GLS transaction in the area was the 2016 sale of the Siglap Road site, now home to Seaside Residences. That site was awarded at S$858 psf ppr, with its 841 units launching in 2017 and selling out by 2021.

Implications for the Market and Future Launch Pricing

Property analyst at PropertyForSale predicts that with a land rate of S$1,388 psf ppr, launch prices for the new development could start from S$2,500 psf.

The Bayshore precinct is set to become a vibrant waterfront neighborhood, with plans for 10,000 new homes—3,000 private residences and 7,000 HDB flats. The site tendered by the Urban Redevelopment Authority (URA) sits at the western edge of the precinct, near the first two Build-To-Order (BTO) projects, Bayshore Vista and Bayshore Palms, launched in October 2024.

Conclusion

The overwhelming interest in the Bayshore Road GLS site underscores the site's attractiveness and the broader optimism among developers about Singapore’s private housing market. As the Bayshore precinct develops into a prime residential enclave, future homebuyers can expect high-quality housing options with excellent connectivity and amenities. The record land bid also signals developers’ willingness to invest in well-located sites with strong demand potential, setting the stage for an exciting new chapter in Singapore’s property market.