Tampines mixed-use development plot draws $668m top bid

This contrasts with Buona Vista long-stay serviced apartment site getting solitary bid of $120m

- Grace Leong

A state land tender for a mixed-use development in Tampines Street 94 got a vote of confidence from developers, with Hoi Hup Realty and Sunway Developments submitting the top bid of $668.3 million on Sept 19, while the first pureplay long-stay serviced apartment site up for tender in Media Circle in Buona Vista attracted just one bid of $120.1 million.

Six bids were submitted for the suburban commercial and residential site near Tampines West MRT station, which can yield 585 residential units and 10,500 sq m of commercial space.

The difference in outcomes for the two land sales underscores the fact that developers were "more willing to participate in known models for development than in a property type or concept that has yet to convincingly prove itself in Singapore", Knight Frank research head Leonard Tay said.

Referring to the US Federal Reserve's interest rate cut on Sept 18, Ms Tricia Song, head of research for South-east Asia at CBRE, said: "The oversized rate cut of 50 basis points in the US may have boosted confidence in the Singapore land sales market, with one tender closing seeing more participation and optimistic bids than those closed in the prior 10 months."

She added: "We expect investment sentiment could improve going forward as funding costs come off, especially if developer sales also pick up on lower mortgage head of research and content Wong rates."