The tender for a mixed-use commercial and residential site at Tampines Street 94 closed on September 19, with a total of six bids received by the government. The highest bid 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.
Spanning 252,989 square feet and with a maximum gross floor area of 665,366 square feet, the 99-year leasehold site is estimated to yield around 585 residential units, according to the Urban Redevelopment Authority (URA). The winning bid by Hoi Hup Realty and Sunway Developments was just 1.9% higher than the second highest bid of $985 psf ppr submitted by Sing Holdings Residential.
When contemplating an investment in a condo, it is crucial to evaluate its potential rental yield. Rental yield is the annual rental income as a percentage of the condo’s purchase price. In Singapore, condo rental yields can differ significantly based on factors such as location, property condition, and market demand. Typically, areas with high rental demand, like those near business districts or educational institutions, offer more favorable rental yields. Conducting extensive market research and seeking guidance from real estate agents can provide valuable insights into the rental potential of a particular condo. It is crucial to carefully consider these factors before investing in a condo.
This tender saw the most bids for a non-Executive Condominium (EC) site since November 2023, when the Clementi Avenue 1 residential development site received six bids. Justin Quek, CEO of OrangeTee & Tie, noted that mixed-use developments integrated with MRT stations continue to be popular with homebuyers, who appreciate the convenience of having commercial and retail options right at their doorstep.
The Tampines Street 94 site is conveniently linked to the Tampines West MRT station on the Downtown Line and is also within a 1km radius of three primary schools: St Hilda’s Primary School, Junyuan Primary School, and Tampines Primary School.
Quek also pointed out that 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. This 545,314 square feet, 99-year leasehold site is estimated to yield 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. The winning bid of $1.206 billion translates to $885 psf ppr.
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