Is There A Surplus of Condos in Tampines?
- Giselle L
- Aug 11, 2024
- 5 min read
Updated: Dec 26, 2024
As of 2024, the housing market has seen a significant shift from the post-COVID housing shortage.
In the first half of the year, the Urban Redevelopment Authority (URA) significantly increased the supply of Government Land Sales (GLS) sites, building on the already high levels of 2023. This has raised the total pipeline to 59,100 new homes, a notable increase given that 2023 already marked the highest annual supply since 2016. The government had signaled this move last year, with a housing supply increase that was 50% higher than in 2022 and 2.5 times higher than in 2021.
This aggressive release of new sites was aimed at addressing the supply crunch following the COVID-19 pandemic, which had raised concerns that a lack of new launches would drive up home prices. Now that this issue is largely resolved, current condo owners face a new question:
Will the value of their properties decline due to the influx of new developments? This is particularly relevant in Tampines, home to Singapore's largest condo project to date.
How Might the Rising Supply Affect Condos in Tampines?
The main factor to consider is the series of significant projects in the area in recent years, particularly the launch and recent completion of Treasure at Tampines.
Launched in 2019, Treasure at Tampines is a massive development with 2,203 units that received its Temporary Occupancy Permit (TOP) last year. Initially priced at $1,335 per square foot (psf), average prices have now risen to $1,695 psf.
While this project is still relatively new, its size may be a concern for some owner-investors. Nearby developments like My Manhattan, Modena, and Eastpoint Green are smaller and have had little competition for many years. Now, these owners must contend with a mega-development that offers strong alternatives to potential buyers.
Treasure at Tampines also has a competitive edge due to its sheer size. With a land area of 60,283 square meters, it offers more facilities and landscaped areas than smaller, older condos. This could make it more attractive to tenants, posing a challenge for landlords in neighboring developments.
A number of Executive Condominiums (ECs) in Tampines will also hit the market after their Minimum Occupation Period (MOP) ends.
Tenet at Tampines Street 62 is set to be completed in 2026. As an EC, it was offered at a lower price point for eligible buyers, with transactions around $1,400+ psf—a competitive price compared to new launches today at around $2,200 psf. However, this will only become relevant in 2032 when the project exits its MOP and enters the resale market.
Parc Central Residences, another EC, will receive its TOP this year, with the last known average price at $1,171 psf. Like Tenet, it won’t start competing with existing resale condos until around 2029 when it clears its MOP.
Aurelle of Tampines, a highly anticipated EC at Tampines Avenue 11, will be an integrated development and is expected to be popular due to its connection to Tampines North MRT station. The target launch date is Q1 2025. Depending on the launch price, it could become a competitor to resale condos in the neighborhood.
A final consideration is Pasir Ris 8. While not technically in Tampines, parts of Pasir Ris fall under District 18, and new launch prices there could statistically raise the perceived average prices in the district.
How Will the Increased Supply Affect Existing Resale Condo Prices?
Existing resale condos in Tampines have some advantages to help them withstand the rising supply:
BTO developments in Tampines have an indirect impact on future condo demand
Tampines is a popular area for BTO launches, as seen in 2022 and 2020. While this may not seem immediately relevant to the private market, consider the long-term impact. It takes about nine to ten years from the launch of BTO flats to their entry into the resale market. Many condo buyers are HDB upgraders, and most prefer locations they’re already familiar with—especially in mature areas like Tampines. This suggests that when these flat owners are ready to upgrade to private property, there will be added demand for condos in Tampines.
To illustrate the significant impact HDB upgraders have on demand, take a look at resale transactions in condos like The Tampines Trilliant this year:
The Tapestry, another condo in Tampines, has been particularly sought after in the resale market this year. Once again, note the number of buyers who were HDB upgraders:
So while the supply of condos in Tampines has grown, the increasing number of flats in the area also lays the foundation for future demand from HDB upgraders
2. Developments in Changi Have a Ripple Effect
The Changi East expansion, including Terminal 5, a new industrial zone, and a smart air-cargo hub, will boost the area. Additionally, the ongoing development of Changi Business Park creates a catchment area for tenants and workers. While Changi isn’t Tampines, its proximity could have a positive impact on the Tampines property market. Check out the URA master plan for Changi region here.
Exact Location Can’t Be Replicated
A strong, unique location offers the best resistance to oversupply. Certain resale condos in Tampines have an edge here. Developments like The Alps, Santorini, and Q Bay offer unique waterfront views of Tampines Quarry and proximity to Bedok Reservoir, which newer condos can’t replicate.
Condos like CityLife @ Tampines and Trilliant are near Tampines MRT and its malls, in a location where space for new condos is limited, which could preserve their value.
ECs Will Take Time to Become Competitive
While ECs offer a more attractive price point, they won’t become competition until after their MOP period. For now, resale condos in Tampines continue to see strong demand, even with new projects like Treasure at Tampines. However, owners may want to consider selling while supply and demand remain balanced.
This can be a complex decision, so feel free to reach out if you’re considering options for your Tampines property. If you’re shortlisting properties in this area and want more insights into specific projects, we’re here to help!
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About The Author
Giselle has eight years of diverse industry experience, bringing a fresh perspective to the real estate landscape whether you're a first-time homebuyer, a seasoned investor, or looking to sell your property. As an excited first-time homeowner, she is also planning her property portfolio. She is also a dog mom of 2 adorable dogs (Shiba Inu and a Rottweiler mongrel mix), a theme park lover, a soft spot for Mandapop, and a carbs lover. For non-obligation consultation, feel free to reach out at 8298 5005 or hit her up at hi.gisellelow@gmail.com