The tender for a mixed-use commercial and residential site at Tampines Street 94, under the government land sales (GLS) program, was closed on September 19 with six bids. The highest offer of $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.
The 99-year leasehold plot covers an area of 252,989 square feet and has a maximum gross floor area of 665,366 square feet. According to the Urban Redevelopment Authority (URA), it has the potential to yield around 585 residential units.
The top bid of $1,004 psf ppr is only 1.9% higher than the second highest bid of $985 psf ppr, which was submitted by Sing Holdings Residential.Read also: Frasers Property-led JV bids $461 psf ppr for Media Circle long-stay serviced apartments siteThe Tampines Street 94 site has received the most number of bids for a non-EC site since another residential development site at Clementi Avenue 1 attracted six bids in November 2023, according to Justin Quek, CEO of OrangeTee & Tie.
The site is located close to the Tampines West MRT station on the Downtown Line and will be linked underground. It is also within a 1km radius of three primary schools – St Hilda’s Primary School, Junyuan Primary School, and Tampines Primary School. Quek believes that mixed-use developments integrated with MRT stations are highly sought after by homebuyers due to the convenience of having commercial and retail options at their doorstep.
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 translates to $885 psf ppr.
When considering an investment in a condo, one must always consider the crucial aspect of financing. In Singapore, there are various mortgage options available, but it is crucial for investors to have a thorough understanding of the Total Debt Servicing Ratio (TDSR) framework. This framework sets limits on the amount of loan that a borrower can obtain, based on their income and current debt obligations. Thus, it is essential to be well-informed about the TDSR and seek guidance from financial advisors or mortgage brokers when exploring financing options for your Condo investment. This will help prevent over-leveraging and ensure a successful investment in your Condo. It is recommended to seek Condo for expert advice and assistance in navigating the TDSR framework. With proper knowledge and guidance, investors can make informed decisions and avoid potential financial risks. Remember, the right financing strategy is crucial to the success of your Condo investment.
The site at Tampines Avenue 11 is expected to have 1,190 residential units, a shopping mall integrated with the upcoming Tampines North MRT station, a bus interchange, a community club, and a hawker centre.