_GLS Tender Closing - Jalan Tembusu and Tampines Street 62 (Parcel B) Executive Condominium plot
Jalan Tembusu
The Jalan Tembusu site did not draw as much interest as expected, receiving just two bids. This was a significant difference from the eight bids submitted for an earlier Jalan Tembusu site that was awarded in January 2022, the present newly launched project, Tembusu Grand. Notwithstanding the announcement of the April 2023 cooling measures, the Tanjong Katong neighbourhood and Marine Parade Planning Area are popular locations for homebuyers due to the coastal recreational areas in the East, as shown by the 55% take-up of Grand Dunman on the first weekend of launch (15-16 July 2023) when 550 units were snapped up. The top bid of about $828.8 million or $1,069 psf ppr by the Sim Lian Group is a mere 0.1% above the second bid of $828.0 million or $1,068 psf ppr. The top bid at today’s Jalan Tembusu tender is around 17.8% lower than the successful bid of $1,302 psf ppr by CDL some 18 months ago, depicting the increasingly tentative and conservative posture of developers for large sites where more than 500 units can be built. In light of economic conditions, the elevated interest rate environment as well as the contracting affordability levels as a result of the increased ABSD rates that affect homebuyers desiring to invest in homes that they are not residing in, developers have become more selective in choosing sites that are within their risk envelop.
At a top bid of $1,069 psf ppr, the possible selling price for the residential units at the Jalan Tembusu when ready to launch could start from $2,100 psf, averaging between $2,200 psf and $2,400 psf. However, with demand for the locality currently in the range of $2,400 psf and above, the developer will have more flexibility in pricing.
The East Coast area has long held prominence and popularity among buyers, with its proximity to lifestyle amenities such as East Coast Park. The site is located away from the congestion of the city centre, but still enjoys quick access to the Downtown Core via the East Coast Parkway (ECP) expressway. The Tanjong Katong locale is home to a vibrant F&B scene, and residents at this future development will also be able to benefit from the upcoming Tanjong Katong MRT (TE25) along the Thomson-East Coast Line.
Tampines Street 62 (Parcel B) Executive Condominium (EC)
The plot at Tampines Street 62 in Tampines North, is a new ‘green shoot’ and extension of Tampines Town. According to the Housing Development Board, Tampines North is planned to capitalise on its existing greenery and proximity to Tampines Regional Centre to create an attractive living environment. There is evidently demand for an executive condominium (EC) in this location given the sales performance of the adjacent EC Tenet, where 97% of the 618 units have been sold (based on the June 2023 monthly developer sales data from URA). With the development of Tampines North MRT station on the Cross Island Line (CRL) as well as a new upcoming bus interchange at a nearby development site, this developing locality within the established Tampines is set to burgeon into a new hive of housing and human activity.
Potential homebuyers would be enticed by the site’s connectivity to public transport and relative proximity to the warehouse retail area where IKEA, Courts, and Giant are located. Furthermore, a new EC project here can also cater to the sizable pool of upgraders from Tampines, Bedok and Pasir Ris.
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