The Tampines St 94 mixed-use site saw 6 bids and a top bid of $1,004 psf ppr came from Hoi Hup and Sunway.
The level of participation was the highest since Nov 2023 where 6 bidders vied for Clementi Ave 1 site. It could be due to the choice location and developers’ growing confidence.
The site will be linked to Tampines West MRT station via an underpass. It is one train stop away from Tampines Regional Centre and a short drive to PIE. As it is a mixed-use site, residents will enjoy amenities right at their doorstep. The popular St Hilda’s Primary School is within 1km.
The confident bid may be due to the developer’s familiarity with Tampines. The outsized interest rate cut by the US Fed may be another reason. With a cut in interest rate, buyers can potentially qualify for a bigger loan and yet see a smaller monthly mortgage payment. This means that buyers previously sitting on the fence due to loan constraints can now buy their new home. More buyers will enter the market.
The Media Circle GLS site is the first pure Long Stay Serviced Apartment (SA2) site to be offered for sale.
Tenant demand has always been strong in one-north. This site fits in the spectrum of accommodation from short to long stays. It will serve tenants who are working in Singapore for a few months.
While SA2 serves an underserved segment of the tenant market, the lack of enthusiasm from developers for SA2 may indicate that the market is not yet ready to embrace this product. This could be due to the higher risks of building an untested product and longer time to recoup the capital.
