The large, 5.74ha Government Land Sales (GLS) plot at Bayshore Drive could draw up to six bids from developer consortiums, with the top bid expected to set a potential record of around $2 billion, according to analysts.
The Urban Redevelopment Authority (URA) launched the tender for the Bayshore Drive GLS site on March 30. The site has the potential to yield approximately 1,280 residential units and includes 22,500 sqm of commercial space. This “sizeable retail component” will address a gap in the immediate precinct, says Newmark research head Wong Shanting, with malls like Bedok Mall and Parkway Parade “located further away”.
The 99-year mixed-use development will be integrated with Bedok South MRT Station, which is expected to draw strong developer interest, adds Wong. “However, given the magnitude of the site, land cost is likely to cross $1 billion, and the tender is expected to attract bids from consortiums instead.”
Building above the MRT station may potentially push up construction costs, says Wong Siew Ying, head of research and content, PropNex.
Such developments are also complex to build. Hence, they are likely to attract bids from experienced developers, says Mark Yip, CEO, Huttons Asia.
These “stringent” building requirements may be “cause for concern” for some developers, says Justin Quek, deputy group CEO of Realion Group (OrangeTee & ETC). “The large overall size of the land parcel may result in one of the highest GLS bids submitted in recent years, and developers may form consortiums or joint ventures in order to mitigate development risks.”
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Given the complexity, Huttons’ Yip thinks “there may not be more than three bids” and the top bid may be between $1,200 and $1,300 psf per plot ratio (ppr), translating into a quantum around $2 billion. “Excluding white and commercial sites, this may be the highest bid ever for a mixed-use GLS site.”
About the Bayshore precinct
Bayshore Drive is the only mixed-use site released under the 1H2026 GLS programme. It is the second private residential site launched in the upcoming Bayshore precinct, where there will be an estimated 3,000 private homes and over 7,000 public housing units.
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Bayshore Road was the first private residential GLS site, awarded in March 2025 to SingHaiyi-Garnet at a bid price of $658,888,998 or $1,388 psf ppr. That land rate is the highest for a GLS residential site in the Outside Central Region (OCR).
The 515-unit Vela Bay, which is being developed on the Bayshore Road plot, is expected to be launched for sale in 2Q2026. Vela Bay could serve as an early indicator of buyer demand and pricing appetite for the new Bayshore Drive mixed-use site, says Newmark’s Wong.
With the launch of this second larger parcel, developers may have limited chances left to snag land in the Bayshore precinct, says Realion’s Quek. “70% of the housing supply in the area will be allocated to public housing, with the remaining 30% catered for private housing. It is also the only integrated site in this whole precinct.”
Buyer demand
Buying demand at the future project is expected to be strong, supported by healthy HDB resale prices in the vicinity, says Quek.
Median resale prices of four-room and five-room flats in Bedok and Tampines that are less than 20 years old have remained strong, reaching $860,000 and over $1 million for 4-room and 5-room flats in Bedok, and $770,000 and $915,000 in Tampines respectively.
With over 8,000 four-room and five-room flats set to reach their Minimum Occupation Period (MOP) in these two towns from 2026 to 2028, potential upgraders may consider the future project here, adds Quek.
According to URA Realis caveat data, private properties (both landed and non-landed) in District 16 (Bedok, Siglap, Upper East Coast) have exhibited strong price appreciation over the years, with median prices per sq ft growing by 44.7% from 2015 to 2025, notes Quek.
“With the planned connection to Changi Airport in the future as the Thomson-East Coast Line is extended, investors will also likely keep an eye out on units here for their strong rental potential,” he adds.
Recent market response indicates sustained demand for large-scale, mixed-use developments in the OCR and the East, says Marcus Chu, CEO of ERA Singapore.
Pinery Residences, for example, attracted over 8,000 visitors during its preview weekend and went on to achieve a strong 92.5% take-up rate at launch, highlighting robust buyer interest.
The tender for the Bayshore Drive GLS site will close at noon on July 15.
