When it comes to investing in Singapore, it’s crucial for foreign investors to have a clear understanding of the regulations and limitations surrounding property ownership. In general, non-residents are permitted to purchase condominiums with relative ease, as opposed to landed properties which have stricter ownership guidelines. However, it’s important to note that foreign buyers are subject to the Additional Buyer’s Stamp Duty (ABSD), which currently stands at 20% for their first property purchase. Despite these extra expenses, the stability and potential growth of the Singapore Real Estate market continues to make it a highly desirable location for foreign investment. To learn more about Singapore Condos, consult with a trusted real estate advisor today.
Evelyn Chow | March 24, 2024The tender for the first private housing Government Land Sale (GLS) site in the upcoming Bayshore precinct closed on March 18, with a total of eight bids received.Located on Bayshore Road, the 99-year leasehold site spans 112,992 sq ft and can yield around 515 units. The top bid of $658.89 million was submitted by SingHaiyi-Garnet, a joint venture between SingHaiyi Group and Haiyi Holdings – a Celine and Gordon Tang-controlled entity that holds majority shareholding in SingHaiyi. This translates to a land rate of $1,388 psf per plot ratio (ppr), just 0.82% higher than the second-highest bid of $653.53 million ($1,377 psf ppr) by Sing Holdings. City Developments had the third-highest bid of $620.8 million ($1,308 psf ppr), 5.3% lower than Sing Holdings’ bid.Justin Quek, CEO of OrangeTee & Tie, remarks that the highest bid prices exceeded expectations and may indicate strong confidence in the potential of the site. Mark Yip, CEO of Huttons Asia, notes that the number of bids received is the highest for a private housing GLS site since January 2022, when a Jalan Tembusu plot (now the site of Tembusu Grand) also attracted eight bids. He believes that developers may have held back from bidding for other GLS plots to pursue the Bayshore site due to the strong sales in recent months, which increased the need for developers to replenish their land bank. Other tenderers for the site included a Frasers Property-led consortium, Kingsford Development, and a Hoi Hup Realty-Sunway Developments joint venture, with bids ranging between $1,252 psf ppr and $1,285 psf ppr.The two lowest bids came from a consortium comprising Hong Leong Holdings, TID, and CSC Land Group at $500.68 million ($1,055 psf ppr), followed by Sim Lian Group at $485 million ($1,022 psf ppr).The sizable gap of 36% between the lowest and highest bids received for the Bayshore Road site reflects mixed market sentiments among participating bidders, comments Marcus Chu, CEO of ERA Singapore. He also highlights that SingHaiyi’s bid of $1,388 psf ppr sets a new benchmark for Outside Central Region (OCR) land prices, surpassing the previous threshold of $1,250 psf ppr paid 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 this new OCR benchmark rivals the land rates of some GLS plots in the Central Region. Last year, Zion Road Parcels A and B in the Rest of Central Region were awarded at $1,202 psf ppr and $1,304 psf ppr, respectively, while the Holland Drive and River Valley Green (Parcel A) sites in the Core Central Region were 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 situated between East Coast Parkway (ECP) and Upper East Coast Road. Around 10,000 homes have been earmarked for Bayshore, with approximately 30% designated for private housing.This site is the prime location in the Bayshore precinct, as it offers a sea view and doorstep access to Bayshore MRT Station, observes Huttons’ Yip. In addition to various new amenities that will be constructed in the neighborhood, the area stands to benefit from long-term development plans, such as the Long Island coastal protection project, which will add reservoirs and parks in front of the Bayshore area, says Leonard Tay, Knight Frank Singapore’s head of research.According to PropNex’s Wong, there have been no significant private condo launches in the Bayshore area for decades. Existing condos in the vicinity include The Bayshore, which was launched in the 1990s, and Costa Del Sol, which hit the market in 2000.Consequently, the area may have pent-up demand for new private housing, including demand from HDB upgraders in the nearby Marine Parade and Bedok estates, Wong says. She also believes that developers were eager to gain first-mover advantage in the area, with the recent positive sales momentum in the primary market and anticipation of healthy homebuying interest in the future Bayshore project reflected in the high number of bids. With the top bid at $1,388 psf ppr, Wong predicts that 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 that prices at the upcoming project could start from $2,700 psf and average above $2,800 psf.