Government launches tender for mixed-use GLS site at Tampines St 94
By Timothy Tay
/ EdgeProp Singapore |
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The Housing and Development Board (HDB) has launched the tender for a mixed-use commercial and residential site at Tampines Street 94. The site is listed under the confirmed List of the 1H2024 Government Land Sales (GLS) Programme.
The 252,989 sq ft site has a gross plot ratio of 2.6 with a maximum gross floor area (GFA) of 665,366 sq ft. The new development could yield 585 residential units, with a commercial GFA of approximately 112,980 sq ft.
"The site is a win with its commercial component and its prime location just across from the Tampines West MRT station. The commercial component will come under a single strata owner, giving them better control over the choice of tenants. It will likely consist of a retail component with a mix of tenants that can serve the residents’ needs, including a childcare centre, supermarket and a food court," says Marcus Chu, CEO of ERA Singapore.
The site is next to Tampines West MRT station on the Downtown Line, and it is one stop away from Tampines Regional Centre and Bedok Reservoir, which adds to the overall appeal of the site, says Mark Yip, CEO of Huttons Asia. "As it is a mixed-use site, residents will enjoy amenities right at their doorstep. Furthermore, there are four primary schools within 1km, including the popular St Hilda's Primary School."
Other schools and educational institutions in the vicinity include Junyuan Primary School, Tampines Primary School, Springfield Secondary School, and Temasek Polytechnic.
Being an established housing estate, Tampines has consistently seen resilient housing demand. According to ERA's Chu, housing demand is well-supported by the workforce in commercial nodes such as Tampines Regional Centre, Changi Airport and Changi Business Park. Investors can also leverage the strong tenant pool of these areas, which are easily accessible via the Downtown Line.
Justin Quek, CEO of OrangeTee & Tie, commented that there is a large number of BTO (build-to-order) flats in the vicinity which would add to the pedestrian footfall around this area. "The closeness of Tampines West MRT station makes travelling more accessible as well. Between 2003 and 2027, around 8,800 flats in Tampines are scheduled to achieve their Minimum Occupation Period (MOP). Islandwide, almost 67,000 flats will hit MOP during this period, contributing to the customer base of the future project, he adds.
"The last GLS site sold in Tampines was at Tampines Ave 11, which was also a mixed-use site," Huttons' Yip points out. It was the 545,314 sq ft, 99-year leasehold, mixed-use development site that was awarded to a joint venture between UOL Group, Singapore Land Group and CapitaLand Development in June last year. The joint venture's winning bid was $1.206 billion or $885 psf per plot ratio (psf ppr). The site will have commercial and residential components integrated with a bus interchange, a community club, and a hawker centre. The residential component will yield about 1,190 units and is scheduled for launch later this year.
Huttons' Yip notes that the Tampines Ave 11 site is double that of Tampines St 94, and received three bids at the close of the tender. He expects the site at Tampines St 94 to receive a similar number of bids, with the top bid likely to be in the range of $820 to $850 psf ppr to be competitive.
According to OrangeTee's Quek, there is pent-up demand for private homes in Tampines as the last private condo to be launched in the area was the 2,203-unit Treasure in Tampines in February 2019. The project was sold out within three years of its launch. Buyers who purchased units at launch and sold in sub-sales and resales have enjoyed significant capital appreciation and profits.
Quek expects to see between three and six bidders for the site at Tampines St 94, with the highest bid in the range of $900 to $980 psf ppr.
In the Outside Central Region (OCR), the new mixed-use development at Tampines Street 94, with an estimated 585 residential units, is considered a mid-sized development, and therefore, the capital outlay will not be as high as some of the larger sites, reckons ERA's Chu. "Despite current headwinds, we believe this site remains closely watched by developers and could garner a higher-than-usual number of bids in today’s climate," he says.
The tender for the GLS site at Tampines Street 94 will close on Sept 19.
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