Commercial site in CBD relaunched for collective sale at $216 mil
The reserve rate equates to a projected land price of $2,610 psf per plot ratio (ppr) for a workplace development, consisting of a land betterment charge (LBC) of $55 million. The purchaser also has the alternative to redevelop the location as a hotel development, which would certainly put the land rate at $2,671 psf ppr, inclusive of the quoted LBC of $61.3 million, states PropNex.
Tracy Goh, PropNex’s head of investment and cumulative sales, feature the industrial zoning of the site indicates that it is not subjected to additional buyer’s stamp duty (ABSD). On top of that, the prime workplace sector continues to be resilient, with rents increasing 5.1% q-o-q in 1Q2023. Goh expects the healthier office market and also the ABSD increases declared as part of the recent round of cooling down measures to result in revived financial investment interest in the business property sector.
The establishments are at 1 to 9 Hoe Chiang Road (odd numbers only) and 2 to 10 Lim Teck Kim Road (even numbers only). Along with the remnant area, the entire site has a complete projected land area of around 18,540 sq ft. The plot is zoned for industrial use and also has a total plot ratio of 5.6.
Goh adds in that the spot is not impacted by limitations limiting the strata community of industrial real estate in the CBD, which will certainly provide more versatility to the buyer to redevelop the plot right into a strata-titled office complex. “The constraints on strata neighborhood is assumed to scrunch the supply of strata-titled office space units in the city center, as well as it will certainly assist to set up the necessity for and costs of such office.”
The site, that makes up two rows of commercial buildings and a piece of remnant land between them, has a reservation price of $216 million. The rate is unchanged from the former tender released on Jan 19 for the place. The tender had already finalized on March 22 with no offers.
A 999-year leasehold commercial location bounded by Hoe Chiang Roadway as well as Lim Teck Kim Roadway in the Business district Core are going to be relaunched for shared sale by means of tender on May 17, according to an announcement by promotion representative PropNex Realty.
Therefore, she expects the area at Hoe Chiang Road and Lim Teck Kim Road to pull attention from buyers, especially offered its place and also term. “Currently, there are nothing else 999-year term commercial sites for sale in the CBD,” she adds. The site is inside strolling distance of Tanjong Pagar MRT Terminal (East-West Line) along with 2 upcoming terminals – Cantonment including Prince Edward Roadway stations on the Circle Line – which are register to be all set in 2026.
The tender for the spot will close on May 31 at 2pm.