Commercial hub of the East
Years after Tampines was first developed into a regional centre, the area continues to progress and provide new opportunities for the commercial market.By Nikki De Guzman As part of the government’s plans to bring jobs closer to home, Tampines was developed into a regional centre, providing residents and visitors with more office and retail developments in the neighbourhood.
More than two decades later, Tampines has come a long way from being mainly just a residential town to being one of the most established commercial hubs outside the city centre.
However, much of the initial focus on the area seems to have subsided, following the announcements of plans to develop Jurong Lake District in 2008, and the North Coast Innovation Corridor in Woodlands in 2013.
Despite this, analysts believe that the commercial potential of Tampines should not be ignored, given the area’s success of becoming a self-sustaining town over the years.
In this issue, we look at Tampines and its ongoing progress, how the commercial market there is faring, and what we can look forward to in the coming years. Rising in the East Since the late 1970s, the government has been developing Tampines from a quiet residential neighbourhood into a self-sufficient town, by introducing commercial developments and an array of facilities and amenities, to meet the needs of current and future residents.
From as early as the 1990s, following the government’s plan to create regional centres, with Tampines being the first growth area to be developed, it was poised to become the commercial hub in the East.
“Tampines is the earliest growth area to be developed into a suburban regional centre,” said Knight Frank Research Head Alice Tan. “Decades later, Tampines (has become) an established regional centre of the East, with popular retail malls, offices and (a) transport network.”
True to form, Tampines has evolved over the last 30 years. Up until the early 2000s, Tampines was mainly a residential neighbourhood. Today, it boasts a retail park which houses the megastores of IKEA, Courts and Giant, an industrial park, a logistics park, several other business parks and three main shopping malls, namely Tampines Mall, Century Square and Tampines 1.
Continuous evolution In recent times, plans to further develop Tampines have been announced. The Urban Redevelopment Authority (URA) released a draft of the Master Plan in 2013 which offered a glimpse into upcoming developments in Tampines.
This includes the development of Tampines Town Hub, Singapore’s first integrated lifestyle hub in the heartlands, incorporating retail, sporting and other community services. It will house facilities such as a 20-court badminton hall, a 5,000-seater FIFA-approved football stadium, six swimming pools and a five-storey regional library, which residents can enjoy when the development is opened progressively from the end of this year.
The government has also started to get the wheels in motion in extending the Downtown Line eastwards to complement the East-West Line, increasing the accessibility for Tampines residents and those living in other eastern suburbs. “The Downtown Line station at Tampines town centre will be part of a future Integrated Transport Hub (ITH) which will include a bus interchange,” said the government. The rail transit line is expected to be completed in 2017.
But the transformation does not stop there. The government has also begun work on the development of Tampines North.
Aside from its 21,000 new homes, Tampines North will also contain new industrial developments, which will give industrialists more options in the East.
One of the upcoming developments in Tampines North is T-Space, a joint development between Lian Beng Holdings and Oxley Holdings, which will be located at Tampines North 1. The 251-unit development will offer a variety of B1-light industrial and general use spaces spread over 294,000 sq ft, catering to a multitude of tenants. It is expected to receive TOP in 2019.
JTC Space @ Tampines North, which will feature about 363,497 sq ft of factory space, is also slated to open this year. Maintained stability Over the years, Tampines has seen stable rents across market segments despite tough economic conditions and geographical competition. Figure 2 shows that from the first quarter of 2013 up to the end of Q4 last year, median office rents remained above the $4 psf per month level, with some uptick throughout the period under review.
“(For office rents), Tampines is currently a pretty attractive destination for companies to set up their back-end offices due to its affordability,” said ERA Realty Network’s Key Executive Officer, Eugene Lim.
“Tampines Regional Centre, in particular, has been a popular choice among many well-known companies. UOB, Singapore Airlines, OCBC and Hitachi are some of the businesses who have offices in the area,” he added.
In terms of vacancy rate, Knight Frank’s Tan said that “with no new office supply, Tampines is currently enjoying a low vacancy rate of around 2.1 percent resulting in average rent levels remaining stable at around $4.60 psf per month”.
Over in the industrial segment, median rents for strata factory units remained around the $1.50 psf per month level over the same period.
Meanwhile, based on data from URA’s Real Estate Information System (REALIS), vacancy rate in multi-user factory developments in Tampines remained at 1.25 percent in Q1 this year.
Market outlook Despite anticipated headwinds for Singapore’s commercial property market, analysts have a more positive outlook for Tampines.
“With the upcoming completion of Tampines Town Hub, the overall retail landscape is poised to be more inclusive and attractive with an expanded array of retail and lifestyle offerings,” Tan said.
“Demand for retail spaces is expected to stay fairly robust, given the large captive resident population and the future injection of community and sports facilities that would enhance the patronage of residents and visitors to Tampines regional centre.”
ERA’s Lim shares a similar outlook, adding that the overall commercial market in Tampines should continue to see stable demand owing to its strategic location. He added that decentralised commercial spaces, particularly offices, are less affected by economic conditions as compared to those in the central areas.
“According to the latest URA figures, median rents in good quality buildings in central locations fell by 3.5 percent. In contrast, those in Tampines rose by 8.7 percent to $5.01 psf,” he said, noting that given the limited supply of office space in Tampines, demand is expected to remain resilient.
As for the industrial segment, Tan said: “Traditionally, the market has been pretty quiet. More large industrial developments like Space@Tampines and T-Space are a plus, and will offer more choices for industrialists.”
T-SpaceTampines North Drive 1Type: B2 industrial building Developer: Lian Beng Group, Oxley Holdings Tenure: 30-year lease Nearby Amenities: IKEA, Giant, Courts Megastore Nearest Transport: Pasir Ris MRT Scheduled Completion: 2019
T-Space is an upcoming development in Tampines comprising of a nine-storey multiple-user ramp-up industrial development by Lian Beng Group and Oxley Holdings.
Zoned for Business-2 or light and general industrial use, the development contains 251 units. There are various unit types and sizes available, catering to a range of tenants.
These include three types of four-storey terrace units with three mezzanines, two types of single-storey studio units with one mezzanine, two types of single-storey typical units without a mezzanine, and two types of double-storey courtyard units.
Unit sizes range from 1,636 sq ft to 38,072 sq ft, with modular units for an option to combine. The development also features an industrial canteen, heavy vehicle parking, and a facilities deck with a rooftop swimming pool.
Located just off the TPE, commuters can also access the development via the Paris Ris MRT station and Bus Interchange.
T-Space is expected to receive its TOP in 2019.
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