SingHaiyi JV tops 8 bids for Bayshore plot with S$1,388 psf ppr offer
This is the highest land price for a 99-year private housing site in the suburbs at a GLS tender
[SINGAPORE] A plum site right next to an MRT station near the eastern coastline of Singapore, combined with an upturn in sentiment at recent private housing launches, resulted in a confident turnout by developers and a record price of sorts at the latest state tender which closed on Tuesday (Mar 18).
The 99-year leasehold plot, which can generate about 515 private homes, is also the first government land sale (GLS) site to be offered in the new Bayshore precinct – which may have drawn developers eyeing a first-mover advantage, said analysts.
The Bayshore Road site fetched eight bids, with the highest from a tie-up between SingHaiyi Group and Haiyi Holdings, part of the Gordon and Celine Tang business empire.
Their offer of S$658.9 million works out to S$1,388 per square foot per plot ratio (psf ppr) for the plot next to Bayshore MRT station.
Analysts polled by The Business Times on Monday had forecast four to seven bids with the top bid projected at S$1,000 to S$1,400 psf ppr.
Competition was stiff, with the top bid just 0.8 per cent above the second-highest bid, from Sing Holdings, at S$1,377 psf ppr.
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City Developments offered S$1,308 psf ppr for the plot. The lowest bid, S$1,022 psf ppr, was from a tie-up between Sim Lian Land and Sim Lian Development.
The level of participation from developers is the highest at a GLS tender for a private housing site since January 2022, when a land parcel in Jalan Tembusu fetched eight bids as well, noted Huttons Asia chief executive officer Mark Yip.
“Developers were saving their gunpowder at previous tenders for the more attractive sites.”
LEONARD TAY OF KNIGHT FRANK SINGAPORE
Moreover, the S$1,388 psf ppr will be the highest land price for a 99-year leasehold private housing site in the suburbs, or Outside Central Region in the Urban Redevelopment Authority’s (URA) regional classification, at a state tender, said Wong Siew Ying, head of research and content at PropNex.
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The previous benchmark was the S$1,250 psf ppr fetched in November 2023 for the Clementi Avenue 1 plot being developed into Elta, noted Marcus Chu, CEO of ERA Singapore.
In fact, the top bid for the Bayshore plot at Tuesday’s tender even exceeded that of some residential sites in the Rest of Central Region (RCR) and Core Central Region (CCR) at state tenders awarded previously.
“In 2024, for instance, Zion Road Parcels A and B, in the RCR, fetched S$1,202 psf ppr and S$1,304 psf ppr, respectively, while CCR plots in Holland Drive and River Valley Green (Parcel A) were sold for S$1,285 psf ppr and S$1,325 psf ppr, respectively,” said Wong.
In a similar vein, Huttons Asia’s Yip said: “This shows a blurring distinction between the different market segments and reflects more on the individual site characteristics and developers’ keenness to pay more for superior attributes.”
And the Bayshore Road plot has a number of strong features. “It will enjoy strong connectivity via both public and private transport, being linked to Bayshore MRT station on the Thomson-East Coast Line alongside close proximity to East Coast Parkway,” said OrangeTee & Tie CEO Justin Quek.
Added Yip: “Temasek Primary School is within 1 km (from) the site. In future, there will be a mixed commercial and residential development above Bedok South MRT station which is one stop away.”
Wong of PropNex noted that some of the future homes on the Bayshore Road site stand to command waterfront views towards East Coast Park.
Pent-up demand
“There may also be some pent-up demand for new private housing, including from HDB upgraders in the nearby Marine Parade and Bedok estates since there have not been any significant private condominium launches in the immediate Bayshore area for decades,” she added. The Bayshore hit the market in the 1990s, and Costa Del Sol in 2000.
The last GLS plot sold that is near to the subject site in Bayshore Road was in Siglap Road, where Seaside Residences stands. It is about 1.5 km away from the Bayshore Road plot and was awarded for S$858 psf ppr in January 2016; its tender had attracted eight bids then. The 841-unit Seaside Residences launched for sale in 2017 and sold out in 2021.
Summing up the high participation rate at the latest tender, Knight Frank Singapore research head Leonard Tay said: “Developers were saving their gunpowder at previous GLS tenders for the more attractive sites, such as Bayshore Road.
“At a land rate of S$1,388 psf ppr, the selling prices at launch could possibly start from S$2,700 psf and average above S$2,800 psf depending on the design and finishes of the project.”
ERA’s Chu noted: “A strategic unit mix will be crucial for the developer to address the diverse needs of different buyer segments. This includes catering to investors seeking rental opportunities, landed property owners rightsizing from nearby enclaves like the Kew and Sennett estates, and families relocating from nearby Tampines and Bedok.”
The Bayshore precinct is a new waterfront residential neighbourhood that will have about 10,000 new homes, comprising 3,000 private homes and 7,000 Housing and Development Board flats.
The area was primarily sand and mudflats, and subsequently reclaimed.
The plot tendered by URA is at the western end of the Bayshore precinct. In October 2024, HDB launched the first two Build-To-Order projects in the precinct: Bayshore Vista and Bayshore Palms.
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