Commercial site in CBD relaunched for collective sale at $216 mil
The reservation price translates to an approximated land premium of $2,610 psf per plot ratio (ppr) for an office development, consisting of a land betterment charge (LBC) of $55 million. The customer likewise has the option to redevelop the location as a resort project, which would place the area rate at $2,671 psf ppr, inclusive of the quoted LBC of $61.3 million, claims PropNex.
The tender for the spot will shut on May 31 at 2pm.
Tracy Goh, PropNex’s head of investment and collective sales, highlights the industrial zoning of the area implies that it is not subjected to additional buyer’s stamp duty (ABSD). Additionally, the prime office sector continues to be resilient, with rental fees increasing 5.1% q-o-q in 1Q2023. Goh expects the healthy office industry and the ABSD increases announced as portion of the recent round of cooling down steps to create renewed investment interest in the commercial estate segment.
Because of this, she expects the area at Hoe Chiang Roadway and Lim Teck Kim Road to draw attention from purchasers, specifically given its area as well as tenure. “Presently, there are no other 999-year term industrial spots available for sale in the CBD,” she adds. The site is inside walking distance of Tanjong Pagar MRT Terminal (East-West Line) along with 2 upcoming terminals – Cantonment including Royal prince Edward Roadway terminals on the Circle Line – which are register to be all set in 2026.
The site, that comprises 2 rows of business buildings and a piece of remnant land in between them, has a reserve rate of $216 million. The price is the same from the previous tender launched on Jan 19 for the site. The tender had already closed on March 22 without any offers.
A 999-year leasehold business location bounded by Hoe Chiang Road and Lim Teck Kim Roadway in the Downtown Core are going to be relaunched for shared sale through tender on May 17, according to an announcement by marketing broker PropNex Realty.
The buildings are at 1 to 9 Hoe Chiang Road (odd numbers only) as well as 2 to 10 Lim Teck Kim Road (even numbers only). Along with the remnant place, the entire location has an overall estimated acreage of around 18,540 sq ft. The plot is zoned for commercial usage and also has a gross plot ratio of 5.6.
Goh includes that the spot is not influenced by constraints restricting the strata subdivision of business estate in the CBD, and that will provide even more flexibility to the purchaser to redevelop the plot into a strata-titled office complex. “The constraints on strata community is anticipated to crimp the supply of strata-titled workplace units in the urban area center, and also it will assist to uphold up the need for and prices of such workplace.”