Commentary on Close of Tender for GLS site at Bayshore Drive

Despite the sizeable development risk that such a project could entail, developer confidence was likely buoyed by the robust sales performance of recent new private home launches in the Outside Central Region, such as Tengah Garden Residences, Pinery Residences (also mixed-use) and Vela Bay, notably located in the same emerging Bayshore precinct. This reflects developers’ optimism that demand for projects supported by infrastructure, proximity to schools, and growth potential under URA’s Master Plan remains resilient, as recent launches have seen healthy take-up.

This is the second GLS site and the first-ever mixed-use plot to be launched in the Bayshore precinct. Vela Bay was built on the first Bayshore site. When Vela Bay was launched in April 2026, it achieved a stellar take-up of 72%, indicating strong buyers’ demand for condominiums in the Bayshore precinct.

“At $2.13  billion ($1,324 psf ppr), the top bid put in by Frasers Property is 5.9% more than the second highest by a CDL-led joint venture. The decisive margin suggests the developer’s determination to secure the site. Beyond its scale - accounting for more than a third of Bayshore’s projected 3,000 private homes- the site offers a rare first-mover opportunity to develop the precinct’s first retail mall. With a potential catchment of about 10,000 homes, the prospect of recurring rental income and long-term commercial upside is likely to have strengthened developers’ confidence despite the project’s substantial development quantum,” said Marcus Chu, Chief Executive Officer (CEO), ERA Singapore.

Furthermore, submitted bids could have been influenced by recent benchmark prices being set for GLS sites in the OCR. Bedok Rise saw 10 bids and was awarded in December 2025 at a land rate of $1,330 psf ppr, while the previous Bayshore Road site was awarded in March 2025 for $1,388 psf ppr after a tender contested by eight bidders.

While the tender for this Bayshore Drive site may not have surpassed these aforementioned GLS price benchmarks in Bedok, it has eclipsed the land rate for the mixed-use site at Hougang Central, which was awarded in January for around $1.5 billion ($1,179 psf ppr). Such confidence in mixed-use sites in the OCR could possibly carry over to the white site at Town Hall Link, which is currently open for tender.

Location Attributes

The Bayshore Drive GLS site's key draw lies in its proximity to Bedok South MRT station and East Coast Park. It is also earmarked as a mixed-use development with around 22,500 sq m of commercial space, which is a point of differentiation that could appeal to developers.

The successful tenderer could build a mall to cater to the daily needs of nearby residents. Future residents of the upcoming project will also appreciate the convenience of the mall as it will be the first suburban mall in the immediate neighbourhood. Currently, the nearest suburban mall to the site is Bedok Mall, which is near Bedok MRT Station.

This underscores that the future development along Bayshore Drive will be the heart and the town centre of the new Bayshore transformation. The larger footprint will enable it to meet future retail demand, especially given the likelihood of a larger neighbourhood population taking root in Bayshore.

In addition, several educational institutions fall within a 2 km radius of the site. These include Temasek Primary & Secondary School, Bedok Green Primary School, Bedok South Secondary School, Bedok View Secondary School, Anglican High School, and Temasek Junior College. 

Buyer Demand

At a land rate of $1,324 psf ppr, it eclipsed the land rate for the most recently tendered mixed-use GLS site at Hougang Central (awarded in Jan 2026 for $1,179 psf ppr) by 12.3%. This highlights Frasers Property’s confidence in the site. In 1H 2026, the strong take-up of OCR projects this year, including Vela Bay and Pinery Residences, indicates strong buyer interest in East-region OCR properties and consistent demand in the segment.

As one of the largest mixed-use GLS parcels along the East Coast, the Bayshore Drive site is well positioned to attract a broad and diverse pool of buyers beyond the East region. With a gross plot ratio (GPR) of 2.6, development could rise between 24 and 36 storeys, meaning certain units could offer a sea view. This presents an opportunity to tap into the pent-up demand for new waterfront homes, which are at the moment, primarily offered in Bayshore and Berlayar (Keppel).

The lack of GLS sites in the vicinity for over 20 years (until the previously tendered Bayshore Road site in 2024) has resulted in a lack of supply. Hence, there is pent-up demand for non-landed homes around Bayshore. In addition, being the second site in the upcoming Bayshore  transformation could forecast strong demand from buyers.

The site has doorstep access to the Bedok South MRT station. With the Thomson-East Coast line, residents will be just 25 minutes from the CBD and 35 minutes from Orchard. A future extension will also connect to the upcoming Changi Airport Terminal 5, which could create jobs and tap into housing supply around Bayshore and Bedok South. 

Outlook

Following the two highly competitive GLS exercises in Bayshore thus far, developers displayed confidence in the long-term potential of the precinct. This is underpinned by genuine buyer demand for new homes in emerging precincts supported by infrastructure and masterplan development.

Following this, we could see continued enthusiasm for future GLS sites in Bayshore, with around half of the projected 3,000 private homes still to be built. 

Fuelled by the strong sales performance across the 2026 launches to date, we expect some developers to look to replenish their land in anticipation of sustained demand.

Currently, excluding Executive Condominiums, three GLS sites remain open for tender, with another eight sites on the recently announced 2H 2026 Confirmed List set to be launched. However, of these eight sites on the Confirmed List, only the East Coast Road site is located in the East Region.

Developers who are unsuccessful in their current bids may turn their attention to the upcoming CCR sites slated for tender in the coming months.