Hoi Hup-Sunway JV submits top bid of $1,004 psf ppr for Tampines St 94 GLS site

The GLS site at Tampines Street 94 is located next to Tampines West MRT station along the Downtown Line. (Source: URA, LandLens)

The government land sales (GLS) tender for a commercial and residential site at Tampines Street 94 closed on September 19 with six bids. The highest bid of $668.28 million, or $1,004 psf per plot ratio (psf ppr), was submitted by a joint venture between Hoi Hup Realty and Sunway Developments.

The 99-year leasehold site spans 252,989 sq ft and has a maximum gross floor area of 665,366 sq ft. URA estimates that it could yield about 585 residential units.

The top bid of $1,004 psf ppr is just 1.9% higher than the second highest bid of $985 psf ppr submitted by Sing Holdings Residential.

The site’s tender has attracted the most bids for a non-EC site since the land tender for a residential development site at Clementi Avenue 1 closed with six bids in November 2023, says Justin Quek, CEO of OrangeTee & Tie.

The GLS site at Tampines Street 94 will be linked underground to the Tampines West MRT station on the Downtown Line. It is also located within 1km of three primary schools – St Hilda’s Primary School, Junyuan Primary School and Tampines Primary School.

"Tampines has always been one of the popular towns among homebuyers and it is not surprising to see more enthusiastic land tender participation for this site," says Wong Siew Ying, head of research and content at PropNex. She adds, "since mixed-use projects typically see brisk sales, especially those near to an MRT station, developers may feel more confident going for this Tampines site."

Other residential projects with a commercial component have performed well at launch, adds Wong. J’den reported 88% of its units sold on its launch day. The Reserve Residences sold more than 70% of its units over its launch weekend and Lentor Modern sold 84% of its units at its launch.

The last mixed-use development site sold in the area was at Tampines Avenue 11. A consortium comprising UOL Group, Singapore Land Group and CapitaLand Development was awarded the 545,314 sq ft, 99-year leasehold site in June last year. Their winning bid of $1.206 billion translates to $885 psf ppr.

The site at Tampines Avenue 11 is estimated to yield 1,190 residential units, a shopping mall integrated with the upcoming Tampines North MRT Station, a bus interchange, a community club, and a hawker centre.

Tricia Song, head of research for Southeast Asia at CBRE, expects both residential projects at Tampines Street 94 and Tampines Avenue 11 to be well-received. "Tampines town has a lack of private condos near MRT and yet has a large upgraders market with a lot of mature public housing and ECs," Song explains.

The Tapestry, a 99-year leasehold private condo close to the Tampines Street 94 site, has recorded 49 transactions so far this year with a median price of $1,674 psf.

Leonard Tay, head of research at Knight Frank Singapore predicts that the possible selling price for residential units at the Tampines Street 94 site could start from $1,900 psf and average at around $2,000 psf. CBRE's Song listed a similar range of between $2,000 to $2,200 psf.

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