The recent government land sales (GLS) tender for a mixed-use site at Tampines Street 94 concluded on September 19, receiving a total of six bids. The winning bid, totaling $668.28 million or $1,004 per square foot per plot ratio (psf ppr), was submitted by a joint venture between Hoi Hup Realty and Sunway Developments.
Located on a 99-year leasehold plot spanning 252,989 square feet, the site has a maximum gross floor area of 665,366 square feet and is estimated to yield approximately 585 residential units. According to the Urban Redevelopment Authority (URA), the site is also well-connected to the Tampines West MRT station on the Downtown Line through an underground link.
The top bid of $1,004 psf ppr was only 1.9% higher than the second highest bid of $985 psf ppr, which was submitted by Sing Holdings Residential. This makes it the most competitive non-EC site tender since the Clementi Avenue 1 residential development site received six bids in November 2023, says Justin Quek, CEO of OrangeTee & Tie.
In addition to its convenient location, the Tampines Street 94 GLS site also offers proximity to three primary schools – St Hilda’s Primary School, Junyuan Primary School, and Tampines Primary School. Quek believes that the popularity of mixed-use developments integrated with MRT stations can be attributed to the added convenience of having commercial and retail options within reach.
The last mixed-use development site sold in the area was at Tampines Avenue 11, which was awarded to a consortium comprising UOL Group, Singapore Land Group, and CapitaLand Development in June last year. Their winning bid of $1.206 billion, translating to $885 psf ppr, is expected to yield 1,190 residential units, a shopping mall, a bus interchange, a community club, and a hawker centre.
When looking into investing in a Singapore Condo, it is crucial to also consider the potential rental yield. This refers to the yearly rental income in comparison to the property’s purchase price. In Singapore, rental yields for condos can vary significantly, depending on factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, offer more attractive rental yields. To gain a better understanding of the rental potential of a specific condo, it is advisable to conduct thorough market research and seek guidance from experienced real estate agents.
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