Huttons’ comments on GLS tenders at Jalan Tembusu and Tampines St 62 (EC)

19 July 2023

The GLS tenders showed the cautious mood among developers in the face of economic uncertainties, high construction costs and interest rates.

The Jalan Tembusu site received bids from 2 developers and a top bid of $1,069 psf ppr. The large quantum and high interest rate may have limited the number of bidders. Developers are choosing to tread carefully in this area despite the strong sales for the recent 3 project launches. The harmonisation of GFA which reduces the saleable area may have played a role in the lower bid than the previous land parcel. However the site possesses strong attributes such as a short walk to Tanjong Katong MRT station and unblocked views over the landed and low rise developments.

The Tampines St 62 (EC) site saw 7 developers vying for it. The EC market is attracting a lot of interest from developers as the past few EC launches have seen very strong sales. Copen Grand is sold out within one month of its launch while Tenet has 4 units remaining. EC is a very compelling and affordable alternative to private residential homes. This area will be more attractive in the future when the Cross Island line and a mixed-use development along Tampines Ave 11 is completed. It will benefit from the potential pool of more than 2,000 HDB flats which will reach its 5-year MOP in 2024 and 2025.