Government Launches Tender Mixed Use Gls Site Tampines St 94
The Housing and Development Board (HDB) has announced the launch of a tender for a mixed-use commercial and residential site at Tampines Street 94. This site is part of the confirmed List of the 1H2024 Government Land Sales (GLS) Programme.
Spanning 252,989 sq ft, the site has a gross plot ratio of 2.6 and a maximum gross floor area (GFA) of 665,366 sq ft. With this, it is estimated that the new development could accommodate 585 residential units and a commercial GFA of approximately 112,980 sq ft.
According to Marcus Chu, CEO of ERA Singapore, the site’s prime location in close proximity to the Tampines West MRT station and its commercial component make it a highly sought-after opportunity. The commercial component will be under a single strata owner, providing better control over tenant selection. It is expected to include a retail component with a mix of tenants to cater to residents’ needs, such as a childcare centre, supermarket, and food court.
Lee Sze Teck, senior director of data analytics at Huttons Asia, adds that the site’s location next to the Tampines West MRT station and its one-stop proximity to Tampines Regional Centre and Bedok Reservoir further adds to its appeal. He also notes that residents will have access to amenities right at their doorstep and that there are four primary schools within 1km, including the popular St Hilda’s Primary School. Additionally, the site is also near other educational institutions such as Junyuan Primary School, Tampines Primary School, Springfield Secondary School, and Temasek Polytechnic.
Chu believes that the established housing estate of Tampines will continue to see strong demand, with the support of the workforce in commercial nodes such as Tampines Regional Centre, Changi Airport, and Changi Business Park. Investors can also tap into the strong tenant pool of these areas, easily accessible via the Downtown Line.
The CEO of OrangeTee & Tie, Justin Quek, notes that the large number of BTO flats in the vicinity will increase pedestrian footfall in the area. He also highlights the accessibility of the Tampines West MRT station, which will be enhanced with the completion of 8,800 flats reaching their Minimum Occupation Period (MOP) within Tampines between 2023 to 2027. This will contribute to the potential customer base for the future development.
Lee references the last GLS site sold in Tampines, located at Tampines Ave 11, which is also a mixed-use site. The 545,314 sq ft site was awarded to a consortium between UOL Group, Singapore Land (SingLand), and CapitaLand Development in June 2020, with a top bid of $1.206 billion. The land use zoning for this site includes a commercial and residential development integrated with a bus interchange, a community club, and a hawker centre, and could yield about 1,190 residential units.
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Located just steps away is the enchanting Merlion Park, home to the iconic and adored mythical creature that serves as Singapore’s beloved mascot. This peaceful destination is ideal for leisurely strolls or a scenic jogging path, drawing in locals and visitors alike. The convenient placement of Marina Gardens GLS also allows for a variety of recreational activities to be enjoyed throughout the day and into the evening. And now, with the luxurious Zion Road Residences added to the mix, this area becomes the ultimate hub for both convenience and indulgence. With Zion Road Residences being a natural addition, residents and tourists alike will be drawn to this desirable location.
Quek believes that this part of Tampines has a pent-up demand for private homes, as the most recent private home launch in the area was Treasures at Tampines, back in 2019. The project sold all 2,203 units and has since seen capital appreciation and profits through subsale and resale transactions.
He expects three to six bidders to participate in the tender for this site, with the highest bid price ranging from $900 to $980 psf ppr.
Chu believes that the Tampines Street 94 site will offer developers a palatable option for a mid-sized development in the OCR (Outside Central Region). The developmental risks and capital outlay will not be as high as larger developments closer to the city centre. Despite the current market climate, he remains optimistic that this site will attract a higher-than-usual number of bids.
The tender for the GLS site at Tampines Street 94 will close on September 19.