Why Jalan Tembusu got fewer bids than Tampines St 62 EC site

The former received two bids, whilst the latter got seven.

The tender closings of the Jalan Tembusu and Tampines ST 62 EC (Parcel B) sites were like a repeat of the Marina Gardens Lane-Tengah EC tenders which showed “contrasting sentiments between suburban and non-suburban sites,” said CBRE.

Data from CBRE showed that Jalan Tembusu, located in the city fringe received two bids, whilst the EC site at Tampines St 62 (Parcel B) garnered seven.

“Developers appear to have lower risk appetites and avoid projects that require large capital outlay, and continue to prefer ECs in the suburbs which are less exposed to cooling measures,” CBRE said.

Huttons, for its part, said the GLS tenders involving the two sites show “the cautious mood among developers in the face of economic uncertainties, high construction costs and interest rates.”

PropNex also laid out several reasons why Jalan Tembusu received fewer and lower bids.

“Firstly, this is a sizable plot with a large quantum and larger project size at 840 residential units, posing higher development risks to developers compared to smaller projects,” PropNex said.

“It could also be a case of developers being wary about the supply of new private homes in the vicinity, with some potentially giving it a miss on concerns that there may be a saturation of sites in this locale, despite District 15’s popularity among buyers,” the expert added.

Meanwhile, Sim Lian Group, which was the top bidder for the Jalan Tembusu, also submitted a bid for the EC site at Tampines Street 62 (Parcel B).

“We are not surprised by Sim Lian’s interest, as it has participated in all the recent GLS land tenders around the two subject sites – the earlier Jalan Tembusu plot, Tampines Avenue 11 site, and Tampines St. 62 EC Parcel A - but its bid prices fell short in those tenders,” PropNex said.

“Sim Lian is also likely looking to build up their development pipeline, following fully-sold Treasure at Tampines and The Botany at Dairy Farm, which is more than half sold based on caveats lodged,” it added.