Tampines Executive Condominium Site for 560 Units Up for Sale: A Boost to Popular Residential Communities
A new executive condominium (EC) site on Tampines Street 95, which could offer around 560 housing units, has been put up for sale by the Housing and Development Board (HDB). This site, part of the confirmed list under the government land sales program for H2 2024, is expected to draw significant interest from developers. The tender will close on October 24th.
Recent EC land tenders have shown strong interest, even as developers become more cautious with private-housing sites. Market experts anticipate that the Tampines site will attract between four and eight bids, with estimates ranging from S$650 to S$750 per square foot per plot ratio (psf ppr).
The Tampines area has always been a sought-after location for homebuyers, especially with popular residential properties like Parktown Residences at Tampines Ave 11 and Kassia. These developments are known for their strategic location, offering a blend of modern living with easy access to amenities and schools, making them highly desirable for families.
Strong Demand for ECs in Tampines
Wong Siew Ying, PropNex’s head of research and content, highlighted that executive condominiums tend to present lower risks for developers due to their stable demand. This was evident when the last EC project in Tampines, Tenet, sold 72% of its 618 units on its launch day in December 2022. Similarly, the 512-unit Lumina Grand EC in Bukit Batok saw strong sales, shifting 53% of its units during its launch weekend in January 2024.
Mark Yip, CEO of Huttons Asia, noted that the new Tampines Street 95 site is in a mature estate with a history of successful Build-to-Order (BTO) launches. This area has a large pool of potential buyers, particularly HDB upgraders, who are eager to transition to ECs like those expected to rise near Parktown Residences and Kassia.
The plot is conveniently located near Tampines West MRT station, adding to its appeal. With upcoming EC launches in the eastern part of Singapore between 2025 and 2026, nearly 2,000 new units will soon be available, increasing the appeal of living in this vibrant area.
Rising Prices and Affordability Considerations
While ECs continue to attract buyers, rising prices are something to watch. PropNex’s Wong cautioned that new EC units might “test the affordability threshold of buyers.” Currently, buyers of new EC units from developers must adhere to a 30% mortgage servicing ratio and a monthly household income ceiling of S$16,000.
Based on URA Realis data, the median price for new ECs sold this year up to August 10th was S$1,502 psf, reflecting a 6% increase from 2023. This upward trend underscores the growing demand for quality housing options like Parktown Residences at Tampines Ave 11 and Kassia, which offer modern amenities and a prime location within the thriving Tampines community.
As developers prepare their bids for the Tampines Street 95 site, they will likely consider the tender results for the nearby mixed-use site on Tampines Street 94, which closes on September 19th. This will help determine a competitive pricing strategy, ensuring a comfortable price gap between the two sites.
