In a significant move in the Singapore real estate market, the joint venture between Hoi Hup Realty and Sunway Developments has emerged as the top bidder for the mixed-use Government Land Sales (GLS) site at Tampines Street 94. The joint venture submitted a bid of $1,004 per square foot per plot ratio (psf ppr), securing the top spot in the highly competitive tender process.
Background on the GLS Tender
The GLS tender for the mixed-use commercial and residential site at Tampines Street 94 was launched by the Housing and Development Board (HDB) on June 26, 2024. The site, which spans a significant area, is poised to become a vibrant mixed-use development, integrating commercial and residential spaces with community amenities. The tender closed on September 19, 2024, with six bids submitted by various developers.
Hoi Hup-Sunway JV’s Winning Bid
The joint venture between Hoi Hup Realty and Sunway Developments has a proven track record in the Singapore property market. Their recent success in securing the top bid for the Tampines Street 94 GLS site underscores their strategic approach and financial strength. The winning bid of $1,004 psf ppr reflects the high demand for prime land in Singapore and the developers’ confidence in the project’s potential.
Implications for the Real Estate Market
The successful bid by Hoi Hup-Sunway JV has significant implications for the Singapore real estate market. The mixed-use development at Tampines Street 94 is expected to cater to the growing residential population in the area, offering a blend of commercial and residential spaces. This integrated approach is likely to appeal to both owner-occupiers and HDB upgraders, as highlighted by Wong Siew Ying, head of research and content at PropNex Realty.
Leonard Tay, head of research at Knight Frank Singapore, believes that the possible selling price for residential units at the future development could start from $1,900 psf. Given the appeal of mixed-use developments with sizeable retail components, there is every chance that homebuyers today would be prepared to pay above $2,100 psf.
Future Development Plans
The future development at Tampines Street 94 is expected to offer about 1,190 new homes, along with retail and community amenities. The integrated development will be linked to the future Tampines North MRT station on the Cross Island Line (CRL), enhancing its connectivity and appeal to potential buyers. The breakeven price for the developer could be an estimated $1,000 psf when various costs such as land acquisition, construction, financing, and marketing are considered.
Key Features of the Development
- Mixed-Use Development: The site will integrate commercial and residential spaces, offering a vibrant community with amenities such as retail outlets, dining options, and community facilities.
- Connectivity: The development will be linked to the future Tampines North MRT station on the Cross Island Line (CRL), enhancing its connectivity and appeal to potential buyers.
- Residential Units: The development is expected to offer about 1,190 new homes, catering to the growing residential population in the area.
- Retail and Community Amenities: The integrated development will include retail and community amenities, making it an attractive option for both owner-occupiers and HDB upgraders.
Conclusion
The successful bid by Hoi Hup-Sunway JV for the Tampines Street 94 GLS site marks a significant milestone in the Singapore real estate market. The mixed-use development promises to inject much-needed new supply of mass market homes and cater to the lifestyle needs of the growing residential population in Tampines North. As the project progresses, it will be interesting to see how the market responds to this integrated development, potentially setting a new benchmark for future mixed-use projects in Singapore.
