Commentary on Berlayar Drive GLS Site Tender Closing

The tender for the Government Land Sale (GLS) site at Berlayar Drive closed today, on 4 August 2026. It drew one bid, with the top bid of $576.8 million (or $1,515 psf ppr) submitted by a consortium comprising GuocoLand Limited and Hong Leong Group.

“Despite attracting only a single bid, the site set a new benchmark for residential GLS sites in the Rest of Central Region (RCR) at $1,515 psf ppr. This surpassed the previous record of $1,455 psf ppr achieved by the Tanjong Rhu Road GLS site in February by 4.1%,” said Marcus Chu, Chief Executive Officer (CEO), ERA Singapore.

“The sole bidder appears to recognise the long-term potential of the emerging Berlayar and Keppel precincts, supported by planned public and private housing, new amenities and wider master-planned developments. Its proximity to the established Bukit Merah and Telok Blangah town centres also provides immediate access to mature amenities which could provide immediate value to early movers,” adds Chu.

The participation of only one bidder could also be because another GLS site along Berlayar Close will be launched for tender in December. 

Arguably, this site is in a better location due to its closer proximity to Telok Blangah MRT station. Developers could be keeping their powder dry for the soon-to-be launched site.

As the sites are part of the Berlayar estate, both stand to benefit from the long-term transformation of the Greater Southern Waterfront (GSW). 

The difference of 14.3% between the top bid of $1,515 psf ppr for the Berlayar Drive site compared to the winning bid of $1,326 psf ppr for the nearby Telok Blangah Road GLS site suggests that developers continue to recognise the value of established city-fringe neighbourhoods that offer potential long-term capital appreciation.

Location attributes

As the Greater Southern Waterfront is progressively redeveloped into a mixed-use waterfront district comprising new homes, commercial spaces and lifestyle amenities, the Berlayar precinct is expected to become an increasingly attractive neighbourhood.

The Berlayar estate is expected to deliver around 10,000 homes, comprising approximately 3,000 private residential units and 7,000 public housing units. Combined, the Berlayar Drive and Telok Blangah sites are expected to deliver almost 40% of the private housing planned for Berlayar. The soon-to-be launched site along Berlayar Close will contribute another 695 units to the Berlayar neighbourhood.

The site's proximity to Telok Blangah MRT station, HarbourFront Interchange station and VivoCity further enhances its attractiveness. The completion of the Circle Line in July also allows future residents to enjoy a seamless commute to key employment nodes such as the CBD, one-north and Paya Lebar. It also enhances the connectivity of the future development to the rest of the island.

In addition, the site is also located near several established green and waterfront corridors, including Labrador Nature Reserve, Berlayar Creek and The Southern Ridges. The abundance of parks and reserves will provide wholesome recreational options for families and increase the appeal of the Berlayar estate to nature lovers. 

Buyer Demand

Developers of condominiums in Berlayar are expected to attract HDB upgraders living in nearby mature estates such as Bukit Merah and Queenstown, who wish to upgrade to private housing while remaining near a familiar neighbourhood.  

For the first half of 2026, these two towns recorded a combined total of 240 million-dollar HDB resale transactions, accounting for around 27% of all million-dollar HDB resale transactions. The high resale price fetched by these HDB flats could potentially support upgrader demand.

The future development is likely appeal to investors seeking rental income as it is located close to the CBD and other major employment hubs such as one-north. Being one of the first private residential sites within the Berlayar precinct, it is well positioned to capture the benefits from the Greater Southern Waterfront transformation and the long-term growth potential of the precinct.

Market Outlook

Despite persistent geopolitical tensions and the uncertainties, Singapore's economy has remained resilient. The Ministry of Trade and Industry (MTI) has retained its 2026 GDP growth forecast of 2% to 4%, reflecting confidence in the country's economic outlook. More recently, Singapore's economy grew by 5.7% year-on-year in 2Q 2026.

Supported by steady economic growth, low unemployment and declining interest rates, demand in Singapore's residential property market has remained healthy. This has been reflected in the strong sales achieved by several recent new condominium launches. With new home demand remaining robust, GLS sites with attractive locational attributes are expected to draw keen interest from developers looking to replenish their land banks.