The regulations and limitations surrounding property ownership in Singapore must be carefully considered by foreign investors. These regulations are particularly strict for landed properties, but the purchase of condominiums is generally permitted without major obstacles. However, foreign buyers are required to pay an Additional Buyer’s Stamp Duty (ABSD) of 20% for their first property acquisition. Despite this added expense, the Singapore real estate market continues to attract foreign investments due to its stable and promising growth. A prime example is the interest garnered by Singapore Projects from international investors, further solidifying the country’s real estate sector as a top choice for global investments.
Mayseng Tan The first Government Land Sale (GLS) for private housing in the Bayshore precinct closed on March 18, attracting eight bids. Located on Bayshore Road beside Bayshore MRT Station, the 99-year leasehold site spans 112,992 sq ft and can yield about 515 units.A joint venture between SingHaiyi Group and Haiyi Holdings (majority shareholder of SingHaiyi Group) submitted the top bid of $658.89 million, translating to a land rate of $1,388 per square foot per plot ratio (psf ppr). This is only 0.82% higher than the second-highest bid of $653.53 million ($1,377 psf ppr) received from Sing Holdings. City Developments had the third-highest bid of $620.8 million ($1,308 psf ppr), which is 5.3% lower than Sing Holdings’ bid. According to Justin Quek, CEO of OrangeTee & Tie, the bids received for this site exceeded initial expectations, indicating strong confidence in its potential.Read also: GuocoLand secures $367.1 mil green loan for Faber Walk developmentThe number of bids received for this site is the highest for a private housing GLS since January 2022, when a Jalan Tembusu plot (now the site of Tembusu Grand) also received eight bids. Mark Yip, CEO of Huttons Asia, believes that developers may have skipped bidding for other GLS sites to capitalize on the Bayshore site. He also adds that “The strong sales in the past few months have increased the need for developers to replenish their land bank.”Other tenderers for the Bayshore Road site include a Frasers Property-led consortium, Kingsford Development and a Hoi Hup Realty-Sunway Developments joint venture, with bids ranging from $1,252 psf ppr to $1,285 psf ppr. The two lowest bids, at $500.68 million ($1,055 psf ppr) and $485 million ($1,022 psf ppr) were received from a consortium led by Hong Leong Holdings, TID and CSC Land Group and Sim Lian Group, respectively. The big gap of 36% between the lowest and highest bids reflects mixed sentiments among the bidders, according to Marcus Chu, CEO of ERA Singapore. He also points out that SingHaiyi’s bid of $1,388 psf ppr has set a new benchmark for Outside Central Region (OCR) land prices, surpassing the previous benchmark of $1,250 psf ppr set 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, PropNex’s head of research and content, adds that the new OCR benchmark is comparable to land rates for some GLS sites in the Central Region. Last year, land parcels A and B on Zion Road, located within the Rest of Central Region, were awarded at $1,202 psf ppr and $1,304 psf ppr respectively, while land parcels at Holland Drive and River Valley Green (Parcel A) in the Core Central Region sold for $1,285 psf ppr and $1,325 psf 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. It is expected to house around 10,000 homes, with 30% allocated for private housing.Read also: Investment sales volume up 35.4% y-o-y in 2024, expected to ease in 2025: SavillsThe Bayshore Road GLS site is considered the best site in the Bayshore precinct, offering a sea view and doorstep access to Bayshore MRT Station, according to Huttons’ Yip. Aside from the new amenities that will be built in the neighborhood, the area will also benefit from long-term development plans such as the Long Island coastal protection project, which will add reservoirs and parks facing the Bayshore area, adds Leonard Tay, Knight Frank Singapore’s head of research. Wong expects that there will be no significant private condo launches in the Bayshore area for decades. This means there may be pent-up demand for new private housing, including demand from HDB upgraders in Marine Parade and Bedok, says Wong. “Riding on the recent positive sales momentum in the primary market, and the expectation of healthy home buying interest for the future Bayshore project, it is not surprising that developers were keen on this GLS tender, perhaps hoping to gain a first-mover advantage in the area,” she adds.Wong predicts that with the top bid at $1,388 psf ppr, the future development at the Bayshore Road site could see an average selling price of over $2,600 psf. Meanwhile, Knight Frank’s Tay believes prices at the upcoming project could start from $2,700 psf and average to over $2,800 psf.