Treasure at Tampines review
Below, we set out five key factors that positively contribute to the Treasure at Tampines development as an attractive prospect for investment.
For more detail and personalised advice on the Treasure at Tampines project, including investment potential, unit availability and selection, please contact real estate agent Terrance Foo.
1. Treasure at Tampines is offering comparably low pricing
It has been widely commented on that the pricing offered by Sim Lian, averaging $1,332 psf, looks like good value in consideration of similar developments in the area, as well as new builds in the wider OCR region.
Comparable developments in the area include:
- Tapestry, completion year 2021, averaging $1,326 psf
- Alps Residences, completion year 2019, averaging $1,253 psf
- Santorini Condo, completion year 2018, averaging $1,134 psf
- Q Bay Residences, completion year 2017, averaging $1,111 psf
Comparable new developments in the wider OCR include:
- The Florence Residences in Hougang, averaging $1,443 psf
- Sengkang Central, estimated $1,687 psf average
Meanwhile, Executive Condominiums in the area are typically priced in the region of $1,000 – $1,150 psf.
For a brand new build boasting a wealth of facilities to be advantageously priced against such comparable developments and ECs, the opportunity for appreciation on resale value looks favourable.
2. Recent land price trends show Treasure at Tampines ahead of the curve.
Following the “en bloc fever” of 2017 and 2018, which saw an astonishing $19.88bn in sales, as well as land bid trends over the same period, there has been an increase in land prices by psf ppr (permissible plot ratio).
Where Sim Lian got in ahead of the curve at $676 psf ppr (including development charge), many other developments – and especially the mega condos – are looking at higher base costs.
Comparable en bloc costs:
- Normanton Park in District 5, purchased for $830m by Kingsford Huray Development at $969 psf ppr
- Eunosville in Geylang, purchased for $765m by MCL Land at $909 psf ppr
- Serangoon Ville, purchased for $499m by Oxley Holdings at $835 psf ppr
- Rio Casa in Hougang, purchased for $575m by Oxley Liang Beng Venture at $706 psf ppr
In terms of GLS land bids, pricing in the OCR has increased from an average of $757 psf ppr in 2017 to $941 psf ppr in 2018, or 24.3% year on year.
With future condos pricing up to cover the higher cost of land, Treasure at Tampines is well positioned as a highly affordable entry level private development.
3. Treasure at Tampines has unique positioning in the East.
Treasure at Tampines is the only mega development in District 18. Surrounded by HDBs, Treasure at Tampines presents a rare opportunity to own a large-scale new build in this area.
As such, it should continue to attract HDB upgraders from the Tampines area, as well as first home buyers looking for a private development with a lower entry-level price point.
4. The sheer size of the Treasure at Tampines project brings tremendous economies of scale
Weighing in at 2,203 units set across approximately 648,889 sqft of land, Treasure at Tampines is Singapore’s largest ever condo build and the only mega development in the East.
The benefits of this unprecedented scale include:
- Room to spread one-off costs across numerous units and lower the pricing psf;
- Far more impressive condo facilities than you will find at developments where the average price point is $1,300-$1,400 psf;
- Highly affordable maintenance fees (despite the impressive facilities) ranging between $150 and $264 monthly.
5. The Tampines area is primed for development.
The Tampines area and East Region generally look set to enjoy growth in coming years as both a residential and business hub.
Key opportunities for the Tampines area include:
- Connectivity enhancements with the additional MRT lines;
- Government plans to develop the area through the East Region Master Plan;
- Lifestyle attractions increasingly suited to work-life balance trends, such as East Coast Park, Bedok Reservoir Park and Changi Beach Park;
- Rising status as a commercial hub, with Changi Airport and the Jewel, Changi Business Park, Changi General Hospital and the forthcoming Aviation Hub.
These factors – and in particular the commercial considerations – should position Treasure at Tampines favourably for tenancy catchment and rental returns.
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In partnership with Terrance Foo, CEA #R047793E