In the ever-evolving landscape of Singapore’s real estate, a noteworthy development has been unveiled as part of the 1H2024 Government Land Sales (GLS) programme. This revelation, situated in the heart of the prospective waterfront neighbourhood in Bayshore, marks a pivotal moment in the city-state’s urban planning. The 105,486 sq ft site on Bayshore Road, listed under the Reserve List, has garnered significant attention from industry experts, including Leonard Tay, Head of Research at Knight Frank Singapore.
A Glimpse into Bayshore’s Future
Bayshore, with its 10,000 planned new homes, is poised to become a bustling waterfront residential haven, ushering in a new era of modern living. Approximately 70% of these residential units are earmarked for public housing, aligning with the Ministry of National Development’s vision for inclusive community development.
Strategic Location and Connectivity
Strategically positioned, the Reserve List plot is intricately linked to the upcoming Bayshore MRT station on the Thomson-East Coast Line. This connectivity not only enhances accessibility but also promises breathtaking views of East Coast Park and the sea from most units. Ismail Gafoor, CEO of PropNex Realty, anticipates strong buying interest, emphasizing the site’s appeal and potential for premium returns.
Unveiling the Opportunity
The last GLS site along Bayshore Road was awarded in 1997, resulting in the development of Costa Del Sol. Given the scarcity of new opportunities in this area over the past two decades, the current GLS site holds particular allure. Leonard Tay foresees the potential for a high premium, citing the development of the Long Island reclamation and the ongoing eastern coast development as contributing factors.
Developer’s Dilemma
Despite the attractiveness of the site and the allure of potential first-mover gains, industry experts like Tricia Song from CBRE suggest a cautious approach among developers. The abundance of supply on the 1H2024 Confirmed List raises questions about the immediate triggering of this Reserve List plot. Song speculates that it might be strategically placed on the Confirmed List later to catalyze the development of the Bayshore estate.
Long-Stay Serviced Apartments: A New Housing Paradigm
Shifting gears, the Singaporean housing landscape is set for further diversification with the introduction of ‘long-stay’ Serviced Apartments. This innovative housing typology, known as Long Stay Serviced Apartments (SA2), is a response to the diverse housing needs of Singaporeans.
Strategic Locations and Development
Under the 1H2024 GLS programme, the government is unveiling a third long-stay Serviced Apartment pilot site on Media Circle in the one-north precinct. This prime location is expected to yield 515 Serviced Apartments, contributing to the government’s broader initiative.
Developer Opportunities and Flexibility
Chia Siew Chuin, Head of Residential Research at JLL Singapore, highlights the significance of such developments in areas with high rental demand. Developers, she notes, can diversify risks and create economies of scale in building common facilities. The URA circular emphasizes flexibility for developers and operators of SA2 projects to experiment with new accommodation concepts, allowing for a range of unit sizes with a minimum nett average size of 376.6 sq ft.
Unique Aspects of the Media Circle Site
The GLS site at Media Circle stands out as it is exclusively designated for long-stay Serviced Apartments. Developers are not obliged to sell within five years to obtain ABSD remission, making it an attractive prospect for those aiming to capitalize on the growing demand for long-term rental accommodations.
