With 29 residential blocks each at 12 storeys high, Treasure at Tampines is the largest private residential project in Singapore right now. How does this mega project fit into our Homevestor criteria?

Transformation and Growth

First, let's look at the surrounding area.

Changi East development is Changi Airport’s largest and latest expansion project.

Source: Changi Airport Group

Spanning 1,080 hectares, (three times the size of Marina Bay), this development consists of Changi Airport Terminal 5. It's expected to serve around 50 million passengers a year, more than T1 and T3 combined.

In addition, an existing third runway which was only used by the military has been converted for joint military-civilian use. The runway was extended from 2.75km to 4km in order to handle larger passenger aircraft.

Changi East industrial zone also includes an expansion of the current cargo facilities. The zone will be developed for airfreight, air express and Maintenance, Repair and Operations (MRO) activities.

With all these projects, this will create many jobs and opportunities, both in construction and services.

This will not only create demand for Treasure at Tampines when buyers decide to sell in the future, but also potentially increase rental demand. Both factors lead to greater capital appreciation and rental yield.

Number of Units

Treasure at Tampines consists of 2,203 units, which fits our criteria of over 400 units for a 99 year leasehold project.

Having more units means there are a lot more transactions. This gives consumers more confidence in the project pricing as the supply and demand are more balanced.

From time of TOP till time of writing, Treasure at Tampines has had 182 sale transactions, averaging about 22 transactions per month. Compared to a nearby smaller project which has 301 units, there were only 5 sale transactions in the same period of time.

Comparing growth from Dec 2023 until now, Treasure at Tampines has a higher capital appreciation of 11.9% versus the other smaller project's capital appreciation of 1.8%.

Source: Squarefoot

Treasure at Tampines also has 476 rental transactions till date from December 2023, which shows that it has good rental demand.

Despite supply being higher than average, we are still seeing healthy transaction volumes. The size of the project is not an issue. By highlighting the advantages of the unit (facing, height, layout) and pricing it well, it can still be sold.

Entry Price Gap

A 1 bedroom unit at Treasure at Tampines transacts at an average price of $799,600.

Source: Squarefoot

Comparing this to The Tapestry nearby, which was completed in 2021 with 861 units, the average price of a 1 bedroom is $916,800.

Source: Squarefoot

Both projects have similar price psf for their 1 bedroom units. However, Treasure at Tampines is a newer project.

We can infer that Treasure at Tampines not only has a small price gap with an older resale project, but it also has a lower entry price, making it easier to enter for buyers.

HDB Upgraders

Treasure at Tampines is surrounded by multiple HDB estates, contributing a substantial amount of HDB upgraders who may be looking to upgrade to a condominium.

Source: URA

In fact, Tampines is one of the most populous towns in Singapore with a population of 274,630 as per the Singapore Department of Statistics 2023 report. Most homestay owners generally don’t move out of the area as they are used to the amenities available.

Looking at transactions of 5-room resale HDB flats in the area for the past 6 months, they have an average price of $890,000. Most of these are located at Tampines Greenweave.

Source: HDB

Assuming a couple has a conservative household income of $10,000 and they buy a 5-room unit at $400,000:

Source: HDB

Assuming they sold their flat at $890,000, this is how much cash and CPF they would have.

Disclaimer: Calculation is based on an estimate and is for analytical purposes only.

This is the couple’s loan accessibility based on their combined income.

Source: I Quadrant App

The average price of a 3 bedroom unit in Treasure at Tampines is $1.5 million based on the most recent transactions.

Source: Squarefoot

Based on their affordability and the price of the 3 bedroom unit at Treasure at Tampines, the couple would be able to afford it.

We can thus assume that a significant portion of HDB upgraders in the area should be able to afford units, adding to the pool of demand.

Rental Yield

Source: Squarefoot

The rental yields go up to 4% depending on the number of bedrooms, with 1 bedroom units having the highest yield.

Based on the current lowest fixed interest rate at 2.8%, 30 years loan and 75% LTV, the monthly repayment for a 1 bedroom unit is $2,863. Contact Loan Experts to find out more!

Source: I Quadrant App

For working adults, CPF contributions can be used to repay mortgages monthly, allowing for a potential positive cash flow from rental.

Treasure at Tampines also benefits from one of the lowest monthly maintenance fees among private projects, being only $168. This further enhances the appeal of 1 bedroom units of Treasure at Tampines as investment property.

Conclusion

Treasure at Tampines fits most of our Homevestor criteria, and the units also have a fair layout. With decent capital growth in the past year as well as a healthy number of transactions, it is a recommended project to buy into.

Watch the video below to find out more about the project's extensive facilities as well as surrounding amenities!