A consortium comprising Frasers Property, Frasers Centrepoint Trust (FCT), Sunway MCL, Sekisui House and Lum Chang put in the top bid of $1,323 psf per plot ratio (ppr) in the tender for the 99-year leasehold Bayshore Drive mixed-use government land sales (GLS) site, which closed on July 15.
The total quantum of the consortium’s bid is $2.13 billion. This is some 5.8% above the second-highest bidder, a consortium that includes entities under the Hong Leong Group, including City Developments Limited (CDL), Hong Leong Holdings Limited, Hong Realty (Private) Limited and TID Pte. Ltd.
The lowest bid came from Breeze Residential and Breeze Commercial Trustee, which were incorporated only in July. It shares a registered address at Capital Tower with CapitaLand entities such as CapitaLand Investment and CapitaLand Integrated Commercial Trust.
According to the Urban Redevelopment Authority’s (URA) website, the commercial and residential site measures 57,460.6 sqm, with 149,398 sqm of maximum permissible gross floor area. The gross plot ratio is 2.6.
According to URA, the estimated commercial space measures 22,500 sqm, and the residential component is estimated to yield some 1,280 residential units.
As the only mixed-use site within the Bayshore precinct under the current URA Master Plan, the development is envisioned to serve as a key retail, recreational and transport hub for the new estate, reads a statement by the highest-bidding consortium.
Complementing the residential component, the new retail mall is envisioned to provide a wide range of retail and lifestyle offerings that will reinforce its position as the new town centre and transport hub for the Bayshore precinct, while also serving the needs of the wider Bedok and East Coast catchment, adds the consortium in a July 16 statement.
If awarded, Frasers Property, Sunway MCL, Sekisui House and Lum Chang will jointly develop the residential component, while the retail component will be developed and fully owned by FCT, Sunway MCL and Sekisui House.
The mixed-use development is directly connected to Bedok South MRT Station on the Thomson-East Coast line and is the only integrated transport hub in the upcoming Bayshore precinct, says Mark Yip, CEO of Huttons Asia.
As such, “residents will be just 25 minutes from the Central Business District and 35 minutes from Orchard”, says Marcus Chu, CEO of ERA Singapore. “A future extension will also connect to the upcoming Changi Airport Terminal 5, which could create jobs and tap into housing supply around Bayshore and Bedok South.”
The retail component of this future development will likely see heavy footfall from nearby residents, says Justin Quek, deputy group CEO of Realion Group (OrangeTee & ETC).
Quek adds: “The eventual extension of the TEL to Changi Airport may entice investors seeking rental opportunities."
The additional planning, infrastructure and construction requirements associated with such a development are likely to have been factored into developers’ bidding strategies while still reflecting confidence in the precinct’s long-term growth prospects, says Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI).
“Nevertheless, attracting three bids for a project of this scale demonstrates that developers remain willing to pursue sizeable land opportunities where they see strong underlying demand,” he adds.
Several educational institutions fall within a 2km radius of the site. These include Temasek Primary and Secondary School, Bedok Green Primary School, Bedok South Secondary School, Bedok View Secondary School, Anglican High School and Temasek Junior College.
Second site in the area
This site marks the second Bayshore site since the launch of the 515-unit Vela Bay, which sold 72% of its units at an average of $2,886 psf on launch weekend in April this year.
The top land bid rate of $1,323 psf ppr is lower than Vela Bay’s $1,388 psf ppr, says Sandrasegeran.
While that is the case, Sandrasegeran believes that “the difference is understandable given the distinct characteristics of the two sites”.
“The Bayshore Drive parcel is expected to deliver approximately 1,280 residential units, making it one of the largest private residential developments within the emerging precinct,” he adds.
Buyers’ demand
The strong take-up of new launches in the Outside Central Region (OCR) this year, including Vela Bay (72%) and Pinery Residences (92.5%), indicates strong buyer interest in OCR properties in the eastern region, says ERA’s Chu.
Chu adds: “As one of the largest mixed-use GLS parcels along the East Coast, the Bayshore Drive site is well positioned to attract a broad and diverse pool of buyers beyond the East region."
“With a gross plot ratio (GPR) of 2.6, development could rise between 24 and 36 storeys, meaning certain units could offer a sea view. This presents an opportunity to tap into the pent-up demand for new waterfront homes, which are at the moment primarily offered in Bayshore and Berlayar (Keppel),” he adds.
Sandrasegeran says “larger residential communities continue to demonstrate strong resale liquidity”, adding that large developments will provide buyers with more choices in layouts, floors and price points.
The top 10 best-selling non-landed resale developments in 1H2026 all came from projects with more than 1,000 residential units, he notes.
Sandrasegeran adds: “With a significantly larger pool of homeowners, they naturally generate a higher volume of resale opportunities at any given point in time. This creates greater liquidity within the development, providing buyers with more unit choices across different layouts, floors and price points, while giving sellers a larger pool of prospective purchasers.”
That said, Wong Shanting, head of research at Newmark, believes that “with an estimated 1,280 dwelling units, the developer will need a calibrated yet assertive marketing strategy to ensure the project is fully sold within the five-year additional buyer’s stamp duty (ABSD) remission window”.
Based on the highest land rate of $1,323 psf ppr, prevailing construction costs, financing costs, integrated development complexity and current new-launch pricing benchmarks, Knight Frank Singapore’s head of consultancy Alice Tan thinks a “reasonable estimate” would place future residential launch prices to start from $2,900, and average around $3,000 psf.
“Selected premium units with sea views, higher floors and integrated transport access could exceed $3,200 psf,” adds Tan.
Read about this year's GLS tenders:
URA launches Lorong Puntong GLS site, first Thomson‑Bishan plot in a decade (June)
Sunway MCL, CSC Land JV tops four bids for River Valley Green (Parcel C) GLS site at $1,730 psf ppr (June)
URA launches Berlayar Drive and New Upper Changi Road GLS sites (May)
Holland Plain GLS site in D10 draws sole bid from Sim Lian (May)
Dunearn Road GLS site draws six bids; Wing Tai-Metro consortium on top with $1,625 psf ppr bid (April)
River Valley Green (Parcel C) GLS site in popular Great World area could ‘pique developer interest’ (April)
Peck Hay Road GLS site in Newton could draw up to eight bids: analysts (April)
Frasers Property-Mitsubishi Estate JV tops four bids for Kallang Close GLS site at $1,415 psf ppr (April)
Large 5.74ha Bayshore Drive mixed-use GLS site could draw $2 bil top bid: analysts (March)
Qingjian Realty, joint venture partners top Dover Drive GLS bid with $1,556 psf ppr (March)
URA launches GLS site at Holland Plain, with up to six bidders expected (February)
CDL-Woh Hup JV places top bid for Tanjong Rhu GLS site, beating out four others (February)
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