Tampines Avenue 10 bid flop blamed on poor transport options

Only three consortiums showed interest on the residential site with the top bid coming in at $252,777,000.

Given this highest bid, Colliers International estimates a break-even cost of $750-$800 per sqft for developing the site.

Despite the site's relative distance to MRT transport, which the property brokerage firm acknowledged as the possible reason behind its low number of bids, there are still upsides. Namely, the site is close to a bustling school, park areas, and business parks -- all of which will help drive up interest.

Here's more from Colliers International:

The response for the tender at Tampines Avenue 10 (Parcel A) is relatively subdued, with only three bids submitted as compared to the number of bids received for last week’s Executive Condominium (EC) site at Tampines Central 7 / Tampines Avenue 7 / Tampines Avenue 9. The tepid response could be due to the site’s location, as it is not within walking distance to the Tampines Regional Centre or any MRT station.

Nevertheless, it is in close proximity to Temasek Polytechnic and the recreational areas of Bedok Reservoir Park. There should be buyer interest from locals as well as foreigners who work in Changi Business Park and Tampines Regional Centre.

A consortium formed by Far East Organization, Frasers Centrepoint Limited and Sekisui House Limited topped the list at $252,777,000 or $417.86 per sq ft per plot ratio. A break-even cost of $750-$800 per sq ft is estimated. Transactions in the first four months of this year for typical three-bedroom units in the neighbouring Waterview were at $870-$890 per sq ft.