Developers have shown a clear preference for proven locations amid current market challenges, as seen on Thursday (Sep 19) when a mixed-use site in Tampines attracted six bids. This state land tender has drawn the strongest interest in a year, a sign that developers remain confident in established areas.<\/p>\n
A joint venture between Hoi Hup Realty and Sunway Developments<\/a> emerged as the top bidder, offering S$668.3 million (S$1,004 psf ppr) for the Tampines Street 94 site. This prime plot will support 585 homes and about 10,500 square meters of commercial space. The bid outpaced five other competitors and exceeded expectations by 1.9%, marking a 13.4% increase compared to a nearby site sold to UOL & Singapore Land<\/a>, and CapitaLand<\/a> Development in July 2023.<\/p>\n The Tampines site\u2019s appeal contrasts sharply with the muted response for a plot at Media Circle<\/a> in one-north, designated for serviced apartments. Despite its proximity to the business hub, the plot saw only one bid from a consortium led by Frasers Property, offering S$120 million (S$461 psf ppr)\u2014well below analysts\u2019 estimates. This experimental project, featuring long-term serviced apartments with a 60-year lease, did not garner the interest hoped for. Industry insiders remain skeptical about the demand for such developments, particularly when untested in Singapore.<\/p>\n Mixed-use sites like Tampines, on the other hand, are proving to be more attractive to developers and investors. The success of the Treasure at Tampines development, which sold over 2,200 units in under three years, is a prime example. With no new launches in the area for several years, developers are likely banking on strong demand for the upcoming project, making competitive bids worthwhile. This confidence is echoed by the potential for significant sales from the 585 homes planned for the Tampines Street 94 site, complemented by its commercial component catering to a growing local population.<\/p>\n Developers like Hoi Hup-Sunway<\/a>, which secured the Tampines plot, are betting on the area\u2019s proven track record, following other successful mixed-use projects like Lentor Modern<\/a>, which have also seen brisk sales. Market experts predict that launch prices for the new development in Tampines could range between S$1,900 and S$2,350 psf, aligning with recent median prices in suburban areas.<\/p>\n