The Housing & Development Board has just closed the tender for a site at Tampines Street 94 under the 1H2024 Government Land Sales programme. The site may yield around 585 residential units, and will have a commercial component of around 10,500 sqm.
The number of bidders was at the upper limit of our expectations, with six bids submitted. The highest bid came from Hoi Hup Realty Pte Ltd and Sunway Developments Pte. Ltd. at a bid price of S$668,280,000, or S$1,004 psf ppr. The bid price was only 1.9 per cent higher than the next highest bid, which was S$655,600,999 or S$985 psf ppr. The stronger interest in this site compared to a similar mixed-use site at Tampines Avenue 11, which was awarded earlier in July 2023 at a land price of over $1.206 billion and received three bids, could be due to the size of this development. The GFA of the Tampines Avenue 11 site, at 126,700 sqm, was more than double of this site here which has a GFA of 61,837 sqm, which resulted in a more palatable price quantum for this land parcel even as the highest bid price was above our initial expectations. This exercise also had the most bidders for a non-EC site since the land tender for a site at Clementi Avenue 1 closed with six bidders in November 2023.
Moreover, integrated developments continue to remain popular with buyers, given the added convenience of having commercial and retail options at buyers’ doorsteps. The advantage of having Tampines West MRT station connected to the development will make travelling to other parts of Singapore even more convenient.
With a large number of HDB flats located in the vicinity, the site will serve as another retail and commercial hub in Tampines. There will likely be heavy footfall at the commercial element of this development, making this land parcel even more attractive.
There may also be pent-up demand for private homes in this area, as the most recent private home launch in Tampines was Treasures at Tampines back in 2019. The project managed to sell out its 2203 units before achieving TOP, and has since had multiple subsale and resale transactions with healthy profits.