Tycoon Gordon Tang Makes Top Bid Of $495 Million For Singapore Waterfront Site

A High-Stakes Auction: Sing-Haiyi Garnet Wins Bayshore Road Plot

In a significant move in Singapore’s real estate sector, Sing-Haiyi Garnet, supported by prominent investors Gordon Tang and his wife Celine Tang, emerged victorious in a competitive auction for a prime residential plot at Bayshore Road. The plot, overlooking the beach along the East Coast Parkway, was secured with a substantial bid of SGD $658.9 million, equivalent to approximately USD $495 million. This acquisition underscores the allure of the site, offering scenic views and strategic location.

Strong Competition Reflects Market Optimism

The auction attracted robust competition, with eight notable bidders vying for the plot. Prominent contenders included City Developments, led by billionaire Kwek Leng Beng, and a joint venture between Frasers Property and Sekisui House. Additionally, Malaysian billionaire Jeffrey Cheah’s Sunway Developments, in partnership with Hoi Hup Realty, also participated. This intense competition highlights a buoyant real estate market, signaling optimism among developers and investors.

A Prime Location with Prominent Features

The plot spans approximately 10,497 square meters, located in a prime area adjacent to the Bayshore MRT station on the Thomson East Coast Line. The 99-year leasehold site is slated to accommodate up to 515 residential units, offering a unique opportunity to tap into the area’s potential. Its proximity to public transport and scenic amenities makes it a desirable location for future residents.

Signs of a Housing Market Rebound

The heightened interest in the auction aligns with indicators of a rebounding housing market in Singapore. According to Leonard Tay from Knight Frank, this level of competition and developer interest has not been seen in recent years, suggesting a market upswing. Developers are strategically replenishing their landbanks to meet the robust demand for private residential properties, which has seen over 2,600 new units sold in the first two months of the year.

Estimating Future Prices: Developer Margins and Consumer Impact

With construction costs and design influencing final pricing, estimates suggest a minimum selling price of SGD $2,700 per square foot, marking a premium over the bid price of SGD $1,388 per square foot. Prospective buyers could expect a minimum price of SGD $1.35 million for a 500-square-foot apartment, reflecting the anticipated value of the development.

The Tangs’ Strategic Investments in Singapore Real Estate

Gordon and Celine Tang have been actively expanding their real estate portfolio in Singapore, exemplified by their 2022 acquisition of a 21% stake in the former Temasek Tower. A 63-story skyscraper, set to become Singapore’s tallest upon its completion in 2028, is currently under development on this site, in collaboration with notable partners including Alibaba. This project underscores the Tangs’ strategic and ambitious approach to real estate investment.