Commercial site in CBD relaunched for collective sale at $216 mil
The site, that comprises 2 rows of commercial structures and a part of remnant land in between them, has a reserve rate of $216 million. The cost is unchanged from the former tender launched on Jan 19 for the site. The tender had sealed on March 22 without offers.
The tender for the site will shut on May 31 at 2pm.
A 999-year leasehold business location bounded by Hoe Chiang Road and Lim Teck Kim Road in the Business district Core are going to be relaunched for shared sale using tender on May 17, according to an announcement by promotion broker PropNex Realty.
The reserve price translates to a projected land premium of $2,610 psf per plot ratio (ppr) for an office enhancement, consisting of a land betterment charge (LBC) of $55 million. The purchaser also has the alternative to redevelop the location as a hotel project, which would certainly put the area price at $2,671 psf ppr, inclusive of the estimated LBC of $61.3 million, states PropNex.
Goh includes that the area is not influenced by constraints limiting the strata neighborhood of industrial estate in the CBD, which will offer more versatility to the purchaser to redevelop the plot right into a strata-titled office complex. “The restrictions on strata neighborhood is expected to scrunch the supply of strata-titled workplace units in the urban area center, as well as it will aid to uphold up the need for and rates of such workplace.”
Tracy Goh, PropNex’s head of investment and cumulative sales, emphasize the commercial zoning of the place suggests that it is exempt to additional buyer’s stamp duty (ABSD). On top of that, the prime office market continues to be resistant, with rental fees increasing 5.1% q-o-q in 1Q2023. Goh anticipates the healthy office industry and also the ABSD increases publicized as portion of the latest round of cooling procedures to lead to renewed investment interest in the retail property section.
The establishments are at 1 to 9 Hoe Chiang Road (odd numbers only) as well as 2 to 10 Lim Teck Kim Roadway (even numbers only). Together with the portion land, the overall location has a complete estimated acreage of around 18,540 sq ft. The plot is zoned for industrial use and has a complete plot ratio of 5.6.
As such, she anticipates the site at Hoe Chiang Roadway as well as Lim Teck Kim Roadway to pull attraction from buyers, particularly offered its location and also term. “Currently, there are no other 999-year term business sites available for sale in the CBD,” she adds. The site is inside walking distance of Tanjong Pagar MRT Station (East-West Line) as well as 2 upcoming terminals – Cantonment also Royal prince Edward Road terminals on the Circle Line – which are register to be all set in 2026.