Commentary on URA tender closing of Commercial and Residential site at Bayshore Drive

By Tricia Song (宋明蔚), Head of Research, Singapore and Southeast Asia, CBRE

Despite geopolitical uncertainty from re-escalations in the US-Iran conflict, the tender for the large scale commercial and residential site at Bayshore Drive (1,280 units) attracted a decent three bids and a top bid of $2.128 bn ($1,323 psf ppr) at the higher bound of our expectations.

The top bid is 12.2% above the $1,179 psf ppr achieved at Hougang Central in Dec 2025 — the most recent comparable OCR mixed-use site with a bus interchange — and sets a new benchmark land rate for an OCR commercial and residential site. This is indicative of sustained developer confidence in the waterfront appeal of the Bayshore precinct.

The tender for Bayshore Drive (1,280 units) received 3 bids, with a top bid price of $1,323 psf ppr submitted by a consortium between Frasers Property, Sunway MCL, Sekisui House and Lum Chang, within expectations. This was 5.8% higher than the second-highest bid of $1,250 psf ppr submitted by a tie-up between CDL, Hong Leong Holdings, Hong Realty and Mitsui Fudosan Co., and 7.2% above the lowest bid of $1,235 psf ppr from a joint venture between CapitaLand Development and UOL Group. The price gap between the top and last bidder of less than 8% shows tight consensus on the site.

Bayshore Drive is the second GLS plot and only mixed-use site in the Bayshore precinct which has been earmarked for transformation under the URA 2025 Masterplan. The large commercial and residential site has a total gross floor area more than 1.6 million sq. ft. It sits directly above Bedok South MRT Station on the Thomson-East Coast Line (TEL) which is slated to open in H2 2026, providing future residents with direct rail connectivity to the Central Business District, Marina Bay and Jurong East. 

Diagonally across from the site are popular schools Temasek Primary School and Temasek Secondary School, and the completed development will be integrated with a bus interchange and retail mall alongside the MRT. The site may also enjoy some partial unblocked sea views of East Coast Beach.

By location, the most direct benchmark is the first Bayshore GLS site at Bayshore Road, a MRT station away towards the city, which drew 8 bids when its tender closed in Mar 2025 and was awarded to a joint venture between SingHaiyi Group and Chuan Capital for $1,388 psf ppr, which set a record land rate for a pure residential GLS site in the OCR. The site was subsequently launched as Vela Bay (515 units) in Apr 2026.

While the 3 bids in today’s Bayshore Drive tender pales in comparison to the 8 bids for Bayshore Road, the more subdued interest likely reflects the site's large size and complexity as a mixed-use project which poses higher developmental risks rather than any lack of developer appetite. It is also consistent with suburban commercial and residential GLS tenders in 2025 at Chencharu Close and Hougang Central.

Project	No. of units sold in 2026 YTD	Median price sold in 2026 YTD	Tenure	Year completed	Total no. of units in project
SEASIDE RESIDENCES	19	$2,287	99 yrs from 18/04/2016	2021	841
COSTA DEL SOL	16	$1,999	99 yrs from 05/05/1997	2004	906
THE BAYSHORE	27	$1,362	99 yrs from 31/05/1993	1997	1,038
BAYSHORE PARK	9	$1,277	99 yrs from 17/03/1982	1986	1,083
Bedok Residences (integrated development)	5	$1,858	99 yrs from 21/11/2011	2015	583
Uncompleted projects
VELA BAY	371	$2,863	99 yrs from 25/06/2025	Uncompleted	515

Source: CBRE Research, Realis.

Besides attracting East Coast lovers, the completed future development could see potential demand from upgraders staying at nearby Bedok and Tampines HDB estates and right-sizers from landed enclaves around Lucky Heights, Kew Drive, Bedok Ria, and Sennett Road.

At a top bid price of $1,323 psf ppr, the joint developers could look to launch the project at an average price of $2,800 – 3,000 psf.