En-bloc Sale Price
Sim Lian Group acquired the sprawling Tampines Court site in a collective en-bloc sale in 2017 for the price of $970 million. At the time of the deal of brochure, it was the second largest en-bloc deal in Singapore’s real estate history.
In addition to the $970 million paid, Sim Lian Group is also liable to pay an additional $359 million for the site. Part of the payment is for developmental charges to amend the plot ratio to 2.8 so as to yield more area for redevelopment. Another portion of the $359 million is to top up the land lease from 69 years old to the maximum possible 99 years.
Price Per Plot Ratio
Based on the new plot ratio, industry watchers projected that the 702,164 square foot size of the site can yield about 2,000 to 2,600 units, the equivalent of 1,966,077 square feet of gross floor area. The Treasure at Tampines land price translates to a $676 per square foot per plot ratio for the Tampines Street 11 site.
Treasure at Tampines has a unique location in Tampines, as there are many amenities in the vicinity. There is also a lack of competition, as there are no new launches in the immediate vicinity because there is insufficient land. Furthermore, most of the resale condominiums in Tampines are further away. This factor alone makes Treasure at Tampines an exciting investment option.
For potential buyers and investors, the key concern after understanding the location and project parameters is the price. What will be the indicative prelaunch price of the Treasure at Tampines condo?
As mentioned above, the land cost is $970 million, exclusive of the $359 million in top-up premiums. In total, the land cost is 1.33 billion, which equates to $676 per square foot. This is based on a plot ratio of 2.8.
Layering in the other cost outlays by Sim Lian Group, there is $682.8 million, or $347 per square foot, that needs to be added for construction costs. Marketing costs and professional fees should cost Sim Lian another $90 per square foot, or $176.4 million. If so, the estimated breakeven cost of Treasure at Tampines should be in the ballpark of $1,113 per square foot.
The indicative selling price when the project is launched can be derived from the breakeven price by adding the margin commanded by Sim Lian Group. Based on a 10% margin, Treasure at Tampines will be launched at an average price of $1,224 per square foot. It will be launched at an average price of $1,336 per square foot, at a 20% developer’s profit. Finally, it can be launched at $1,447 per square foot if Sim Lian Group wants a 30% margin.
A highly possible scenario will be that Sim Lian will launch the project at a lower margin (around $1,224 psf) during the VVIP preview during the launch of Treasure at Tampines. After a critical mass number of units have been sold, Sim Lian will be highly likely to raise prices thereafter.[/vc_column_text]
Summary of Treasure at Tampines Breakeven Price and Indicative Selling Price
| Land Cost | $1,329 million | $676 psf |
| Estimated Construction | $682.8 million | $347 psf |
| Estimated Professional Fee/ Marketing / Others | $176.4 million | $90 psf |
| Estimated Breakeven Cost | $2.18 Billion | $1,113 psf |
| Estimated launch price (10% margin) | – | $1,224 psf |
| Estimated launch price (20% margin) | – | $1,336 psf |
| Estimated launch price (30% margin) | – | $1,447 psf |
The following is a snapshot of the historical highest per square foot transacted for private condominiums in Tampines. These transactions form baseline support for the indicative prices of Treasure at Tampines.
Private & Executive Condominiums in Tampines and Historical Highest $PSF
| Condo | TOP date | Historical Highest $psf | Date | Type |
| Waterview at Tampines | 2014 | 1,194 | May 13 | Condo |
| Q Bay Residences | 2016 | 1,345 | Jun 18 | Condo |
| Arc at Tampines | 2014 | 942 | Apr 18 | EC |
| The Tropica | 2000 | 1,001 | Jun 13 | Condo |
| The Santorini | 2017 | 1,274 | Apr 14 | Condo |
| The Tapestry | 2022 | 1,797 | Oct 18 | Condo |
| The Alps Residents | 2020 | 1,301 | Oct 18 | Condo |
| Pinevale | 1997 | 964 | May 12 | EC |
| The Tampines Trilliant | 2015 | 1,150 | Jun18 | EC |
| CITYLIFE@Tampines | 2016 | 930 | Jul 13 | EC |
| The Eden At Tampines | 2003 | 937 | Apr 13 | EC |
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