Commercial site in CBD relaunched for collective sale at $216 mil
A 999-year leasehold commercial site bounded by Hoe Chiang Roadway as well as Lim Teck Kim Roadway in the Downtown Core are going to be relaunched for shared sale via tender on May 17, according to a press release by marketing representative PropNex Real estate.
The reservation price converts to an approximated land premium of $2,610 psf per plot ratio (ppr) for an office property development, consisting of a land betterment charge (LBC) of $55 million. The buyer also has the option to redevelop the site as a resort development, which would certainly place the land price at $2,671 psf ppr, inclusive of the quoted LBC of $61.3 million, says PropNex.
Tracy Goh, PropNex’s head of investment and also cumulative sales, highlights the business zoning of the site suggests that it is not subjected to additional buyer’s stamp duty (ABSD). Furthermore, the top office sector continues to be durable, with rental fees increasing 5.1% q-o-q in 1Q2023. Goh anticipates the healthier workplace industry as well as the ABSD increases publicized as portion of the new round of cooling actions to result in restored investment attention in the commercial estate section.
The structures are at 1 to 9 Hoe Chiang Road (odd numbers only) and 2 to 10 Lim Teck Kim Road (even numbers only). Alongside the remnant land, the overall location has an overall projected acreage of around 18,540 sq ft. The plot is zoned for industrial usage as well as has a complete plot ratio of 5.6.
Thus, she expects the site at Hoe Chiang Road as well as Lim Teck Kim Roadway to attract attention from customers, particularly offered its area and also tenure. “Currently, there are nothing else 999-year term industrial spots up for sale in the CBD,” she adds. The website is inside walking distance of Tanjong Pagar MRT Terminal (East-West Line) as well as two upcoming terminals – Cantonment and Royal prince Edward Road stations on the Circle Line – that are schedule to be all set in 2026.
Goh includes that the site is not impacted by restrictions limiting the strata community of industrial real estate in the CBD, which will certainly offer more versatility to the customer to redevelop the plot right into a strata-titled office complex. “The restrictions on strata neighborhood is expected to crimp the supply of strata-titled office units in the city centre, and it will certainly help to set up the need for and prices of such office spaces.”
The area, which makes up two rows of commercial establishments and a piece of remnant land in between them, has a reserve cost of $216 million. The cost is the same from the former tender kicked off on Jan 19 for the spot. The tender had sealed on March 22 without bids.
The tender for the location will close on May 31 at 2pm.
