Bayshore Road bid signals strong developer confidence in market demand

The top bid came in at about $659m.

The tender results for the Bayshore Road site, which received eight bids, show that developers are confident about market demand, analyst says.

The Bayshore Road site is considered the first private residential GLS site tender in the new Bayshore precinct, which is earmarked to have about 10,000 new homes - of which 70% are slated to be HDB flats, with the remaining 30% for private housing.

Leonard Tay, Head of Research at Knight Frank Singapore said that HBD BTO exercise of October 2024 included the launch of 1,792 units of which 1,444 future homes were to be in Bayshore in the two projects of Bayshore Palms and Bayshore Vista.

“Bedok, which also comprised of Kembangan Wave, was 4.9 times oversubscribed at the end of the BTO exercise, and perhaps served as a forward-looking indicator of homebuyer demand when developers were forming their bids for today’s tender close at this location,” Tay said.

Justin Quek, CEO of OrangeTee & Tie said that the eight bids received exceeded their expectations, an indicator of the potential of the site. 

“With no new private homes in Bayshore for over 20 years, there may be some pent-up demand for homes here. Moreover, nearby projects have seen strong price appreciation over the past few years. As this site features unique attributes, we may expect keen demand for the future project here when it is launched,” Quek said.

Wong Siew Ying, Head of Research and Content at PropNex also added that the better-than-expected tender outcome indicates that developers were willing to submit bullish bids to secure a promising site, with strong locational attributes sought-after by homebuyers.

“Riding on the recent positive sales momentum in the primary market, and the anticipation of healthy homebuying interest for the future Bayshore project, it is little wonder that developers were out in droves for this GLS tender – perhaps also hoping to gain a first-mover advantage in that area. We think the recovery in buying sentiment and the robust take-up rates at several successive launches since October 2024 have helped to drive market optimism, leading to more confident bids,” Wong said.