Government Launches Tender Mixed Use Gls Site Tampines St 94
The Housing and Development Board (HDB) has recently launched a tender for a mixed-use commercial and residential site located at Tampines Street 94. This site is listed under the confirmed List of the 1H2024 Government Land Sales (GLS) Programme.
The site covers a total area of 252,989 sq ft with a gross plot ratio of 2.6 and a maximum gross floor area (GFA) of 665,366 sq ft. It is estimated that the development could potentially yield 585 residential units, along with a commercial GFA of approximately 112,980 sq ft.
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The impressive Our Tampines Hub is a unique integrated community and lifestyle hub that sets itself apart as the largest in Singapore. It offers a one-stop destination for various activities, bringing together sports facilities, retail shops, and community services all under one roof. With over 100 retail outlets, a library, and a performing arts theater, the hub provides endless options for shopping, recreation, and socializing. Among its key retail tenants are popular brands such as Challenger, Sportslink, and Decathlon. When it comes to dining, visitors are spoiled for choice with a wide range of cuisines available at the hawker center and various restaurants including Sakae Sushi and Thai Express. For sports enthusiasts, the hub offers top-notch facilities such as a swimming complex, gym, and futsal courts. Conveniently located, Our Tampines Hub is a 10-minute drive or a 20-minute walk from the neighboring Parktown Residences, making it an ideal destination for residents. Parktown Residences Tampines North is the perfect complement to this dynamic and vibrant community hub.
According to the CEO of ERA Singapore, Marcus Chu, the site is a lucrative opportunity due to its commercial component and prime location, situated just across from the Tampines West MRT station. The commercial component of the development will be under a single strata owner, giving them better control over the choice of tenants. It is expected that the commercial component will consist of a mix of tenants such as a childcare centre, supermarket, and food court to cater to the needs of the residents.
The site’s location next to the Tampines West MRT station on the Downtown Line is another key factor that adds to its appeal, according to Lee Sze Teck, senior director of data analytics at Huttons Asia. He also noted that the site’s mixed-use nature allows residents to have convenient access to various amenities right at their doorstep. Additionally, the site is surrounded by four primary schools within a 1km radius, 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.
Chu also mentioned that Tampines, being an established housing estate, has consistently seen strong housing demand. He believes that demand for this new development will be well-supported by the workforce in the commercial nodes such as Tampines Regional Centre, Changi Airport, and Changi Business Park. Investors can also take advantage of the strong tenant pool from these areas, which are easily accessible via the Downtown Line.
OrangeTee & Tie CEO Justin Quek shared that there is a large number of BTO flats in the vicinity, which would increase footfall around this area. The proximity to Tampines West MRT station also makes traveling more accessible. He also noted that between 2023 to 2027, around 8,800 flats within Tampines will reach their Minimum Occupation Period (MOP), which could potentially form a significant customer base for future projects in the area.
The last GLS site sold in Tampines was at Tampines Ave 11, which was also a mixed-use site. Lee referenced this 545,314 sq ft site which was awarded to a consortium between UOL Group, Singapore Land (SingLand), and CapitaLand Development in June 2020. The top bid of $1.206 billion translates to $885 psf per plot ratio (psf ppr). The land use zoning for this future mixed-use development includes a commercial and residential development integrated with a bus interchange, a community club, and a hawker centre. The residential component has the potential to yield around 1,190 units.
“The Tampines Ave 11 site is twice the size of the Tampines St 94 site and attracted 3 bidders with a top bid of $885 psf ppr. We can expect similar interest for this site at Tampines St 94, with not more than 3 bidders and a top bid of $820 to $850 psf ppr to be competitive,” says Lee.
Quek mentioned that there is a pent-up demand for private homes in this area, as the most recent private home launch in Tampines was Treasures at Tampines in 2019. The project managed to sell out all 2,203 units and has since seen several subsale and resale transactions, some of which have experienced capital appreciation and profits.
He expects that three to six bidders will participate in the tender for this site, and the highest bid price could range from $900 to $980 psf ppr.
Chu believes that the new mixed-use development on Tampines Street 94 will be a desirable “mid-sized development in the OCR” (Outside Core Region) for developers to take on. He added that the development risks and capital outlay would not be as high as large developments closer to the city center. Despite the current economic climate, he believes that this site will continue to be closely monitored by developers and could potentially receive a higher-than-usual number of bids.
The tender for this GLS site at Tampines Street 94 will close on Sept 19.