1H2024 GLS: First private housing site in Bayshore unveiled, but on the Reserve List

/ EdgeProp Singapore |

December 6, 2023 5:30 AM SGT

The first private development site in the future waterfront neighbourhood in Bayshore was revealed as part of the 1H2024 Government Land Sales (GLS) programme. The 105,486 sq ft site on Bayshore Road is listed under the Reserve List.

This means that the site will only be launched for public tender when a developer has submitted an indicated minimum price that is acceptable to the government. Bayshore has been earmarked as a future waterfront residential neighbourhood with 10,000 new homes. About 70% of planned residential units will be set aside for public housing.

According to the Ministry of National Development, the release of the first private housing site at Bayshore Road will kickstart the development of the waterfront estate. If it is successfully triggered for tender and subsequently awarded, the new development could yield 480 private residential units.

“This Reserve List plot is very appealing, and we think it has a high chance of being triggered for sale. It is linked to the upcoming Bayshore MRT station on the Thomson-East Coast Line and most units are likely to offer unlocked views of East Coast Park and the sea. The project will enjoy strong buying interest from buyers,” says Ismail Gafoor, CEO of PropNex Realty.

There hasn’t been a new GLS site along Bayshore Road in more than two decades, and the new GLS site will pique developers’ interest, says Leonard Tay, head of research at Knight Frank Singapore. “The future development could fetch a high premium given the development of the Long Island reclamation and development along the eastern coast of Singapore,” he says.

(Credit: URA)

The last GLS site on Bayshore Road was awarded in 1997 and developed into Costa Del Sol, while an adjacent site was awarded in 1993 and developed into The Bayshore.

On the other hand, it is possible that despite the attractiveness of the site and the potential first-mover gains, developers will take a more cautious approach towards this site, says Tricia Song, head of research Singapore and Southeast Asia, CBRE.

“With ample supply on the 1H2024 Confirmed List, we do not expect this site to be triggered in the next six months. This could well be put on the Confirmed List later to kickstart the development of Bayshore estate,” she says.

Long-stay serviced apartments to be launched in one-north

Last month, Desmond Lee, Minister for National Development announced a new category of ‘long-stay’ Serviced Apartments as part of the government’s efforts to expand the range of housing options that can meet the diverse housing needs of Singaporeans.

An industry circular published by URA on Dec 4 states that this new Serviced Apartments II (SA2) housing typology will be known as Long Stay Serviced Apartments. It is intended as a form of rental accommodation but for longer-term lodging of at least three months.

Two sites on the 2H2023 GLS list have already been shortlisted for SA2 – at Upper Thomson Road (Parcel A) and Zion Road (Parcel A). Now, under the Confirmed List of the 1H2024 GLS programme, the government is releasing a third long-stay Serviced Apartment pilot site on Media Circle in the one-north precinct. This development is expected to yield 515 Serviced Apartments.

The GLS site at Media Circle in one-north is the only fully-SA2 development announced so far. (Map: URA)

“The Media Circle site is designated for long-stay serviced apartments. While it does not cater to the buying demand, it provides developers the opportunity to enter the rental accommodation market and cater to demand in the one-north and Singapore Science Park areas,” says Chia Siew Chuin, head of residential research at JLL Singapore.

Housing developments identified for SA2 will be popular in areas with high rental demand and allow developers to diversify development risks as well as create economies of scale when building common facilities, says Song.

The URA circular also states that developers and operators of SA2 projects will have the flexibility to experiment with new accommodation concepts, and SA2 developments can comprise a mixture of unit sizes, as long as there is a minimum nett average unit size of 376.6 sq ft. But SA2 developments are expected to be owned en-bloc and operated by a single operator.

“The GLs site on Media Circle is interesting as it is stipulated for long-stay Serviced Apartments use only, and developers would not need to sell out within five years to obtain the ABSD remission. Views from high floors would attract research and technical professionals who would like to live and work in the media and science park hub of one-north,” says Tay of Knight Frank.