13 May 2016
Since as early as 1991, the idea was mooted to decentralize economic activity from the Central Business District (CBD) to other parts of the island. Thus, the regional centres were born. Tampines was the first to be built, with its development starting in 1992. More than 20 years later, Tampines is now the most established of all the regional centres.
Tampines is actually a great town to live in and well sought after by buyers. Three applicants were vying for one Housing and Development Board (HDB) flat in the latest sale exercise for Tampines BTO flats. Among them, interest was particularly high amongst the second timers. There were 40 applicants for each 3 Room flat on sale.
As further testament to its popularity, flat prices in Tampines have outperformed neighbouring towns Bedok and Pasir Ris. Taking 4 Room HDB resale flats as an example, the median selling price was $423,400 while those in Bedok and Pasir Ris were $400,000 and $402,000 respectively.
Figure 1 Median price of 4 Room HDB flats
Source: HDB, ERA Research
HDB flats are not the only properties favoured by buyers, private condominiums are popular as well.
Tampines was the 11th most active area in terms of transactions, out of a total of 38 areas. Activity in Tampines was higher than areas such as Queenstown and Clementi. Despite significant interest in Tampines, there has yet to be a corresponding increase in prices. Latest statistics point to Tampines’ median prices being at a 31 per cent discount to the whole island. Furthermore, compared to Jurong, an upcoming regional centre, prices are 28 per cent lower. As such, from an investment viewpoint, private properties in Tampines may enjoy more headroom for future capital appreciation.
Figure 2 Median price of private residential property
Source: Urban Redevelopment Authority (URA) REALIS, ERA Research
