Huttons’ comments on Lentor Central and Tampines Street 62 (EC) GLS tenders

It is probably the best site under the 1H 2021 GLS programme in our view. It is right at the doorstep of the upcoming Lentor MRT station and minutes’ drive to the CTE and SLE.

It offers developers the opportunity to shore up their land bank by more than 600 units, something which none of the en-bloc sites offer. Furthermore the buoyant HDB resale market means there will be more HDB upgraders looking for options in the market and there are not many new mass market condo launches in 2022.

Besides the HDB upgraders, there will be pent-up demand as the last launch in the area was The Calrose in 2005. The commercial component will provide much needed amenities to the area and future developments.

The EC site at Tampines Street 62 saw 9 bidders and a top bid of $659 psf ppr.

The site sits in a mature estate. Tampines had quite a number of BTO launches in the past few years and there is a large pool of potential upgraders looking to upgrade to an EC.

As of June 2021, launched EC projects are on average 82% sold. Parc Central Residences in Tampines is around 85% sold so it is possible that in 15 months’ time, the site at Tampines Street 62 will be the only EC project in Tampines. Demand is robust in this segment and hence developers are confident to put in the bid.