Treasure at Tampines is the largest private residential project in Singapore right now, consisting of 29 residential blocks, each 12 storeys high.

So how does this mega project fit into our homevestor criteria? Let’s find out!

Transformation and Growth

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

Source: Changi Airport Group

This development spans 1,080 hectares, which is three times the size of Marina Bay. It consists of Changi Airport Terminal 5, which will serve around 50 million passengers a year, more than T1 and T3 combined.

Furthermore, the existing third runway, previously used only by the military, has been extended from 2.75km to 4km to handle larger passenger aircraft, and converted for joint military-civilian use.

Adding on to that, there is also Changi East industrial zone which 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, not only for the new facilities but also for the construction of these facilities.

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

Number of Units

Treasure at Tampines is the largest residential project till date, consisting 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.

Currently, from its TOP till date, Treasure at Tampines has 182 sale transactions, averaging about 22 transactions per month. Comparing this to a nearby smaller project, which only has 301 units, it only has 5 sale transactions in the same period of time.

Comparing their growth, from Dec 2023 until now, Treasure at Tampines has a higher capital appreciation of 11.9% while the nearby smaller project only has a 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 at Treasure at Tampines being higher than average, we are still seeing healthy transaction volume. Thus, the big size of the project is not a problem as long as with the right pricing and advantages of the unit (facing, height, layout), the unit can still be sold.

Entry Price Gap

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

Source: Squarefoot

Comparing this to a nearby project, The Tapestry, which is completed in 2021 and has 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.

Thus, not only does Treasure at Tampines have 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 which contributes a substantial amount of HDB upgraders looking to upgrade to a condominium.

Source: URA

In fact, Tampines is the second largest town in Singapore with a population of 274,360 (Singapore Department of Statistics, June 2023). Its roots are deep and most homestay owners generally don’t move out of the area as they are used to the amenities in the east.

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

Source: HDB

Assuming a couple with a conservative household income of $10,000 and they bought a 5-room unit at $400,000.

Source: HDB

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

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

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

Source: Squarefoot

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

With HDB upgraders able to afford the units at Treasure at Tampines, this adds to the pool of demand for the project.

Rental Yield

Source: Squarefoot

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

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

Source: I Quadrant App

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

The monthly maintenance fee is also one of the lowest among private projects in Singapore at 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 adding on to that, the units also have a fair layout. With its decent capital growth in the past year as well as its healthy number of transactions, it is a recommended project to buy into.

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