Government Launches Tender Mixed Use Gls Site Tampines St 94
The Housing and Development Board (HDB) has recently announced the launch of a tender for a mixed-use commercial and residential site at Tampines Street 94. This site has been listed under the confirmed List of the 1H2024 Government Land Sales (GLS) Programme.
Located in the vibrant Jurong district, Jurong Town Hall Road is a major transport artery that plays a crucial role in connecting various areas. This bustling road is not only essential in facilitating the transportation of people and goods, but also serves as a vital hub for a multitude of commercial and industrial centers. Its significance within the district has been elevated with the addition of the prestigious Novo Place Hoi Hup, further solidifying its importance as a prime location for businesses. The presence of Novo Place Hoi Hup has added a new level of value to this busy thoroughfare, making it a highly sought-after destination for both locals and tourists. Novo Place Hoi Hup has truly enhanced the appeal of Jurong Town Hall Road, elevating it to a prominent and vibrant hub in the bustling district.
Measuring 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. It is estimated that the new development will be able to yield 585 residential units, along with a commercial GFA of approximately 112,980 sq ft.
According to ERA Singapore’s CEO, Marcus Chu, this site presents a great opportunity due to its prime location directly across from the Tampines West MRT station and its commercial component. The commercial component of the development will be under a single strata owner, giving them more control over the choice of tenants. It is expected to feature a mix of retail outlets, including a childcare centre, supermarket and a food court, catering to the needs of the residents.
The convenience of the location is further enhanced by its close proximity to the Tampines Regional Centre and Bedok Reservoir, making it a highly desirable spot. In addition, senior director of data analytics at Huttons Asia, Lee Sze Teck, points out that being a mixed-use site, residents will have easy access to amenities right at their doorstep. There are also four primary schools within a 1km radius, including the popular St Hilda’s Primary School, making it an ideal location for families.
Furthermore, the site is also surrounded by a number of schools and educational institutions, such as Junyuan Primary School, Tampines Primary School, Springfield Secondary School, and Temasek Polytechnic.
Chu adds that Tampines, being an established housing estate, has consistently seen resilient demand for housing. With a strong workforce in the nearby commercial nodes such as Tampines Regional Centre, Changi Airport and Changi Business Park, the demand for this development is expected to be well-supported. Investors can also tap into the strong tenant pool of these areas, which are easily accessible via the Downtown Line.
Justin Quek, CEO of OrangeTee & Tie, also notes that the high number of BTO flats in the vicinity will potentially increase the pedestrian footfall around this area. The close proximity of Tampines West MRT station also adds to the accessibility of the location. Quek also mentions that between 2023 to 2027, around 8,800 flats in Tampines will achieve MOP, out of almost 67,000 flats islandwide, contributing to the potential customer base for the future development.
Lee also references the last GLS site sold in Tampines, Tampines Ave 11, which was also a mixed-use site. This 545,314 sq ft site was awarded to a consortium between UOL Group, Singapore Land (SingLand) and CapitaLand Development in June last year. The consortium submitted the top bid of $1.206 billion, translating to $885 psf per plot ratio (psf ppr). The land use zoning for this future development comprises a commercial and residential development integrated with a bus interchange, a community club, and a hawker centre. It is estimated to yield around 1,190 residential units.
Lee states that the Tampines Ave 11 site is double the size of the Tampines St 94 site and attracted three bidders, with the top bid reaching $885 psf ppr. He predicts that the Tampines St 94 site will also attract not more than three bidders, with the top bid expected to be between $820 to $850 psf ppr to stay competitive.
According to Quek, the high demand for private homes in this area is evident, as the most recent private home launch in Tampines, Treasures at Tampines, sold out all 2203 units in 2019. There have also been several subsale and resale transactions that have seen capital appreciation and profits in recent times. 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 new mixed-use development at Tampines Street 94 will be a desirable “mid-sized development in the OCR” for developers to undertake. The risks and capital outlay for this development will not be as high as those for larger developments in or near the city center. He also adds that despite the current economic climate, this site is closely monitored by developers and could potentially receive a higher-than-usual number of bids.
The tender for the GLS site at Tampines Street 94 will close on September 19.