SINGAPORE (EDGEPROP) – The east region has always been a popular residential neighbourhood, but demand for homes in the area increased with the opening of Stage 4 of the Thomson-East Coast Line (TEL) in June. The new MRT line, which stretches from Tanjong Rhu to Bayshore, has significantly enhanced connectivity for a previously underserved neighbourhood. Connectivity in the east region is expected to improve further with the completion of the Cross Island Line (CRL) in 2032. The CRL will link Changi, Pasir Ris, and Tampines in the east region to the Jurong Lake District and West Coast in the west region.

Bayshore is anticipated to become the next hot spot for residential development in the east region. Some of the government’s development plans are already underway. The first two build-to-order (BTO) projects in Bayshore were launched for application in October, and the first residential government land sales (GLS) site in Bayshore was launched for tender last month. Approximately 10,000 new homes are expected to be built in Bayshore, with an estimated 70% of them designated as public housing.

Two Bayshore BTO projects were oversubscribed

During the BTO exercise in October, two HDB projects in Bayshore were launched for application, namely Bayshore Vista and Bayshore Palms. These projects are located adjacent to each other, and bounded by Bayshore Road and East Coast Parkway. Together, they offer a total of 1,444 flats, ranging from two-room flexi to four-room flats. The estimated wait times for Bayshore Vista and Bayshore Palms are 45 months and 47 months, respectively.

Read also: First private residential site in Bayshore launched for sale

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Bayshore MRT Station and East Coast Park are a short walk from both projects, which likely explains why they were launched under the Plus category. As such, tighter restrictions and a longer minimum occupation period (MOP) of 10 years apply to Bayshore Vista and Bayshore Palms. Shops, eating houses, and preschools will be built within the projects. Additionally, Temasek Primary School, Temasek Secondary School, and Temasek Junior College are located within a 1km radius.

The close proximity of an MRT station and a wide variety of amenities likely contributed to the popularity of Bayshore Vista and Bayshore Palms. Both projects were oversubscribed across all flat types (see Table 1), attesting to the desirability of the Bayshore neighbourhood. Unfortunately for prospective buyers, no projects in Bayshore are included in the upcoming BTO exercise in February next year.

Resale prices for HDB flats in Bedok

The average resale price for two-room flats in Bedok ($630 psf) is higher than that of their three-room ($555 psf) and four-room ($602 psf) counterparts (see Chart 1). Three-room flats in Bedok (40.9%) have shown the strongest resale price growth since 2020, followed by two-room flats (39.1%) and four-room flats (36.8%).

Notably, the prices for some three-room and four-room flats from Bayshore Vista and Bayshore Palms are higher than the average prices of their resale counterparts. Apart from age, the higher prices for these BTO flats could be attributed to their classification under the Plus category, which comes with higher pricing.

The average resale price for HDB flats in Bedok ($582 psf) is lower than that for the east region ($589 psf) and islandwide ($601 psf) (see Chart 2). Additionally, a lower price growth of 37.9% has been recorded for flats in Bedok, compared to those in the east region (38.9%) and islandwide (39.4%). The average age of HDB flats in Bedok is 38 years, and the short remaining leases of these flats could have had a dampening effect on their resale prices.

First GLS in Bayshore launched for tender last month

This year has been an unusual one for the GLS market, with four unawarded GLS sites, namely Jurong Lake District, Marina Gardens Crescent, Media Circle, and Upper Thomson Road (Parcel A). However, developers’ response to tenders for GLS sites seems to be improving. The tender for the Faber Walk GLS site closed last month with three bids. The top bid of $349.9 million ($900 psf ppr) was submitted by a consortium comprising GuocoLand, Hong Leong Holdings, and Mitsui Fudosan.

Read also: Is it a Good Deal?: A 99-year leasehold three-bedder in Bedok sold for $1,098 psf

The stellar sales performances of several condominiums during their launches last month may have boosted developers’ confidence. During their launch weekends, Nava Grove and Chuan Park achieved take-up rates of 65% and 76%, respectively. Emerald of Katong led the pack, achieving a 99% take-up rate during its launch.

The GLS site along Bayshore Road is expected to attract developers due to East Coast's status as a well-established and popular residential neighbourhood. Furthermore, this site is the first residential GLS land parcel in Bayshore to be launched for tender, offering the successful tenderer a first-mover advantage. The site is surrounded by undeveloped land parcels earmarked for future development (see Map 1).

The Bayshore Road GLS site has a 99-year tenure and is located within the Bedok Planning Area and District 16. It is bounded by Bayshore Road to the west, Bayshore Drive to the north, and East Coast Parkway to the south. The site is conveniently located next to Bayshore MRT Station and is a short drive from East Coast Parkway. It is also within walking distance of East Coast Park. Amenities within a 1km radius include Temasek Primary School, Temasek Secondary School, Temasek Junior College, East Coast Lagoon Food Village, and Bedok Jetty. The tender for the Bayshore Road GLS site was launched last month and will close in March next year.

The well-located site has a minimum gross floor area (GFA) of 427,116 sq ft (39,680 sq m) and a maximum GFA of 474,574 sq ft (44,089 sq m), allowing for the construction of approximately 515 condo units.

The successful tenderer is required to construct a covered linkway over an existing footpath and cycling path near Exit/Entrance 1 of Bayshore MRT Station. They must also widen an existing footpath along Bayshore Drive and provide a covered linkway following the widening of the footpath. Additionally, the successful tenderer must provide two pedestrian gates. One gate is along the northern boundary of the site (fronting Bayshore Drive) and the other gate is along the western boundary of the site (near Exit/Entrance 1 of Bayshore MRT Station). The newly constructed covered linkways and pedestrian gates are required to be seamlessly connected.

Only three 99-year leasehold condos within 500m radius

There are 13 condos, representing a total of 3,525 units, within a 500m radius of the Bayshore Road GLS site. However, only three of these condos have 99-year tenures, while the remaining ten are freehold developments. The three leasehold condos are Bayshore Park, The Bayshore, and Costa Del Sol (see Map 2).

Read also: The October 2024 BTO will introduce Plus flats and Open-Concept layouts

Interestingly, all 10 freehold condominiums are small developments with fewer than 100 units, whereas the three leasehold condominiums are significantly larger. Among the trio, Costa Del Sol (906 units) is the smallest, and also the youngest, having obtained its temporary occupation permit (TOP) in 2004. In contrast, Bayshore Park (1,083 units) is the largest, and the oldest, having obtained TOP in 1986. The Bayshore strikes a middle ground, featuring 1,038 units and obtaining TOP in 1996.

Profitability of the three condos

At the time of writing, none of the three developments had any unprofitable transactions this year. Bayshore Park recorded 27 profitable transactions, while Costa Del Sol and The Bayshore each recorded 35 profitable transactions. Despite having the fewest profitable transactions, Bayshore Park registered the highest top profitable transaction at $1.935 million, followed by Costa Del Sol at $1.57 million and The Bayshore at $898,000 (see Table 2).

The top profit of $1.935 million for Bayshore Park involved a four-bedroom unit on the 25th storey. The 2,196 sq ft unit was sold in October for $2.7 million ($1,230 psf). The seller had purchased the unit in February 2005 for $765,000 ($348 psf).

Similarly, the top profitable transaction for Costa Del Sol involved a four-bedroom unit. The 1,755 sq ft unit on the 10th storey was sold in January for $3 million ($1,710 psf), resulting in a profit of $1.57 million. The seller had purchased the unit in July 2001 for $1.43 million ($815 psf).

The top profit for The Bayshore was $898,000, from the sale of a two-bedroom unit that measures 1,012 sq ft. The unit on the 24th storey was sold in June for $1.45 million ($1,433 psf). The seller had purchased it in January 2006 for $552,000 ($546 psf).

Prices for leasehold condos in District 16

Among the three condominiums, it is unsurprising that Costa Del Sol ($1,728 psf) achieved the highest average resale price (see Chart 3), given its relative youth compared to the other two condos, as well as its strong profitability. Furthermore, Costa Del Sol faces East Coast Park, offering many of its residents unblocked views of the sea. In contrast, The Bayshore is located behind Costa Del Sol, meaning its residents are unlikely to enjoy excellent sea views.

From 2021 to last year, the average resale price for Bayshore Park was trending above that of the younger The Bayshore. However, this year, the average resale price for The Bayshore ($1,349 psf) surpassed that of Bayshore Park ($1,300 psf). This could be because The Bayshore and Costa Del Sol are located adjacent to Bayshore MRT Station, which opened in June, while Bayshore Park is further away from the MRT station (see Map 2). Another reason could be the weaker price growth since 2020 achieved by Bayshore Park (35.4%), compared to Costa Del Sol (36.4%) and The Bayshore (39.6%).

The average resale price for 99-year leasehold condos that are 21 to 40 years old is lowest in the east region ($1,326 psf), followed by District 16 ($1,337 psf) and islandwide ($1,359 psf) (see Chart 4).

This is despite the fact that condos in the east region (39.4%) have experienced the strongest price growth since 2020 compared to their counterparts in District 16 (38.3%) and islandwide (34.8%). This indicates that older leasehold condos in the east region and District 16 hold value better than similar condos islandwide. This could be due to government plans for the region which gave a boost the en bloc potential for these condos.

It is noteworthy that Bayshore Park ($1,300 psf) has an average resale price lower than that of similar condos in District 16 ($1,337 psf) and the east region ($1,326 psf). On the other hand, Costa Del Sol ($1,728 psf) and The Bayshore ($1,349 psf) have average resale prices higher than those in District 16 and the east region.

However, The Bayshore (39.6%) is the only condo among the trio that has experienced stronger price growth since 2020 than similar condos in District 16 (38.3%). Costa Del Sol and Bayshore Park have recorded weaker price growths of 36.4% and 35.4%, respectively. Prospective buyers should take note of the relative affordability and strong price growth of The Bayshore.

The average new sale price for 99-year leasehold condos in District 16 ($2,067 psf) is significantly lower than that for similar condos in the east region ($2,421 psf) and islandwide ($2,364 psf) (see Chart 5). This could be because the price growth since 2020 for new condos in District 16 (34.3%) is lower than that for the east region (56.6%) and islandwide (36%).

The limited number of available new condos in District 16 could have impacted the new sale prices in the district. This year, only 80 new condo units in District 16 were sold, down from 198 units last year (see Chart 6). Of the 80 units,  67 units were from Sceneca Residence and the remaining 13 units were from Sky Eden @ Bedok. These two condos are also the only new launches in District 16 over the last three years. In contrast, the number of new sale transactions for condos in the east region remained stable at 1,262 units last year and 1,242 units this year. The lack of new condos in District 16 bodes well for the successful tenderer of the Bayshore Road GLS site.

Conclusion

The east region, especially the neighbourhoods near East Coast Park, has always been popular among homebuyers. The desirability of the neighbourhood was further enhanced with the completion of the TEL in June. The upcoming CRL is expected to further improve connectivity for the region and hence give a further boost to demand for residential properties in the neighbourhood.

More new housing is expected to be built in Bayshore as part of the government’s plans for the east region, which has been kickstarted by the launch of two BTO projects in October. The 1,444 flats in Bayshore Vista and Bayshore Palms were oversubscribed, attesting to the demand for flats in Bayshore.

A GLS site near Bayshore MRT Station was launched for tender last month. Currently, there are limited new leasehold condos in the vicinity. Costa Del Sol, The Bayshore, and Bayshore Park are the only 99-year leasehold developments within walking distance of the GLS site but they are at least 20 years old. Despite their age, the condos still achieved strong profitability with at least 27 profitable transactions and no unprofitable transactions this year.

Check out the latest listings for The Bayshore, Bayshore Park, Costa Del Sol properties

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