Knight Frank Commentary | Tender Closing for Berlayar Drive GLS Site

Knight Frank Commentary | Tender Closing for Berlayar Drive GLS Site 

There was just one participant in the Berlayar Drive GLS site tender with a bid of S$577 million, equivalent to approximately S$1,515 psf per plot ratio (ppr). The lack of developer interest is surprising, even though the land rate of the sole bid exceeds expectations. This land rate is also around 14% higher than the S$1,326 psf ppr for the nearby Telok Blangah Road GLS site awarded in November 2025.

While the muted interest from most other developers signalled that not all are sure at this stage on the attractiveness of an area that is not yet developed, the sole bidder’s land rate also suggests a relatively positive outlook of demand in the Berlayar area and its place in the wider Greater Southern Waterfront growth precinct. Perhaps the present risk appetite of most developers is geared more towards allocating development funds in established housing locations that already have a sizable existing resident population. At a land rate of S$1,515 psf ppr this could possibly translate into a possible launch price that starts in the region of S$2,900 and averages around S$3,100 psf, with premium stacks potentially exceeding that level depending on views, orientation and product design.

The key attraction of the site remains its position among the first wave of private residential developments in the new Berlayar estate. The combination of proximity to Telok Blangah MRT station, access to HarbourFront and the CBD, waterfront attributes, and immediate access to nature assets such as Labrador Nature Reserve and the Southern Ridges provides a differentiated proposition relative to many city-fringe locations. A project at Berlayar Drive might draw some owner-occupier demand from HDB upgraders from Bukit Merah, Queenstown and nearby city-fringe estates, where HDB resale units (especially the newer units) sell at a premium, typically above $1 million.