I’m excited to highlight a recent development in the executive condominium (EC) market that could reshape the landscape of Tampines in eastern Singapore. On the Confirmed List of the Government Land Sales (GLS) programme for the second half of 2024, the Housing and Development Board (HDB) has launched a new tender for an EC site along Tampines Street 95. This move comes on the heels of growing demand for ECs, especially in areas that provide both residential tranquility and convenient access to amenities.
Overview of the Site
The 99-year leasehold EC site spans 242,190 square feet and has a gross plot ratio of 2.5 under the Master Plan, meaning it is primed to yield approximately 560 residential units. The location offers an appealing mix of connectivity and convenience. It sits within 1km of well-regarded schools such as Red Swastika School and St. Hilda’s Primary School, and it is also close to Tampines West MRT Station on the Downtown Line, ensuring easy commuting to other parts of Singapore. Additionally, Temasek Polytechnic is just around the corner, making the area attractive to families with school-going children and young professionals alike.
A Competitive Landscape
The proximity of this EC site to another mixed-use commercial and residential site along Tampines Street 94, which was launched in June and is still open for tender, sets the stage for an interesting bidding dynamic. The latter site, with its larger land area and potential for both commercial and residential development, is expected to yield 585 residential units with a commercial gross floor area of 112,980 square feet. Given that both tenders are in the same vicinity, developers will likely be closely watching the results of the tender for the mixed-use site to gauge the competition.
Mark Yip, CEO of Huttons Asia, has indicated that bids for the EC site at Tampines Street 95 will likely take their cue from the results of the mixed-use site's tender. Yip estimates that there may be up to five bidders for the EC site, with the top bid coming in at between $650 and $700 per square foot per plot ratio (psf ppr). To stay competitive, he notes that there will need to be a comfortable price gap between the EC site and the mixed-use site to make the former more attractive to developers looking for a feasible investment.
Tampines: A Flourishing Region
Tampines has long been a popular area for residents due to its blend of residential comfort and well-established amenities. Over the years, it has grown into a regional center with robust infrastructure, retail options, and parks that enhance the quality of life for its residents. The development of new EC projects, such as the one at Tampines Street 95, only serves to strengthen the appeal of this mature estate.
Moreover, ECs continue to be an attractive option for Singaporeans aspiring to own private property but who are seeking a more affordable entry point compared to other private condominiums. These units offer the best of both worlds — the advantages of private housing at a more accessible price range, with eligibility for government subsidies for those who qualify.
Summary of Key Highlights:
- Location: EC site at Tampines Street 95, close to reputable schools, MRT station, and Temasek Polytechnic.
- Land Area: 242,190 square feet with a gross plot ratio of 2.5.
- Development Potential: Estimated to yield 560 residential units.
- Proximity: Close to another mixed-use site on Tampines Street 94, currently still open for tender.
- Estimated Bids: Expected to range between $650 and $700 psf ppr, with up to five bidders anticipated.
- Appeal: Tampines offers an excellent mix of amenities, connectivity, and established infrastructure, making it an ideal location for EC buyers.
Interpretation and Market Implications:
The launch of this EC site adds to the growing supply of executive condominiums, catering to middle-income families who seek private property at a more affordable price point. Given the strong demand for ECs, the Tampines Street 95 site is likely to attract significant interest from developers and homebuyers alike. However, with rising land prices and the competitive bidding environment, we can expect EC prices to climb in tandem with market conditions.
This development underscores the continued relevance of ECs in meeting the aspirations of Singaporeans who desire private housing without compromising on affordability. As the market continues to evolve, it’s essential to stay informed about new projects and emerging opportunities.
If you’re considering entering the property market or upgrading to an executive condominium, now is a good time to explore your options. Reach out to me today for the latest updates and personalized advice on how to secure your ideal home in this dynamic market.