Commercial site in CBD relaunched for collective sale at $216 mil

Tracy Goh, PropNex’s head of investment and collective sales, feature the commercial zoning of the area means that it is exempt to additional buyer’s stamp duty (ABSD). On top of that, the main workplace market remains resistant, with leas rising 5.1% q-o-q in 1Q2023. Goh expects the healthier office market and the ABSD increases announced as section of the new round of cooling measures to result in revived investment interest in the business real estate segment.

The site, that consists of 2 rows of business buildings and also a part of remnant land in between them, has a reserve price of $216 million. The price is the same from the previous tender released on Jan 19 for the site. The tender had actually finalized on March 22 without bids.

A 999-year leasehold business spot bounded by Hoe Chiang Roadway and Lim Teck Kim Roadway in the Downtown Core are going to be relaunched for cumulative sale through tender on May 17, according to a press release by marketing broker PropNex Real estate.

The establishments are at 1 to 9 Hoe Chiang Road (odd numbers only) and also 2 to 10 Lim Teck Kim Road (even numbers only). Together with the remnant place, the entire site has a complete approximated acreage of around 18,540 sq ft. The plot is zoned for commercial usage as well as has a total plot ratio of 5.6.

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Goh adds that the site is not affected by constraints restricting the strata community of business real estate in the CBD, and that will certainly supply more versatility to the buyer to redevelop the plot into a strata-titled office building. “The limitations on strata class is expected to scrunch the supply of strata-titled office units in the city center, and it will certainly assist to set up the need for and costs of such office.”

The tender for the location will shut on May 31 at 2pm.

Because of this, she anticipates the site at Hoe Chiang Road and also Lim Teck Kim Road to pull interest from buyers, particularly provided its area as well as tenure. “Currently, there are no other 999-year tenure industrial sites for sale in the CBD,” she includes. The site is within walking range of Tanjong Pagar MRT Station (East-West Line) along with two upcoming stations – Cantonment also Royal prince Edward Roadway terminals on the Circle Line – which are schedule to be all set in 2026.

The reserve cost translates to a projected land premium of $2,610 psf per plot ratio (ppr) for an office enhancement, including a land betterment charge (LBC) of $55 million. The purchaser also has the option to redevelop the location as a hotel project, and that would place the land price at $2,671 psf ppr, inclusive of the estimated LBC of $61.3 million, states PropNex.

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