Commercial site in CBD relaunched for collective sale at $216 mil
The reserve cost converts to a projected 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 customer likewise has the alternative to redevelop the location as a resort development, and that would certainly put the land rate at $2,671 psf ppr, inclusive of the approximated LBC of $61.3 million, states PropNex.
Thus, she expects the area at Hoe Chiang Roadway and also Lim Teck Kim Road to pull attraction from purchasers, specifically given its area and also tenure. “Presently, there are no other 999-year tenure industrial locations available for sale in the CBD,” she includes. The site is inside walking range of Tanjong Pagar MRT Terminal (East-West Line) along with two upcoming terminals – Cantonment also Prince Edward Roadway terminals on the Circle Line – that are register to be all set in 2026.
Tracy Goh, PropNex’s head of investment and collective sales, emphasize the industrial zoning of the area implies that it is exempt to additional buyer’s stamp duty (ABSD). Furthermore, the main workplace industry continues to be resilient, with rents increasing 5.1% q-o-q in 1Q2023. Goh anticipates the healthier office industry as well as the ABSD increases publicized as section of the new round of cooling actions to result in restored investment attention in the commercial estate segment.
The location, which makes up two rows of commercial buildings and a piece of remnant land between them, has a reserve rate of $216 million. The price is unchanged from the previous tender launched on Jan 19 for the spot. The tender had already closed on March 22 without any bids.
The structures are at 1 to 9 Hoe Chiang Road (odd numbers only) and 2 to 10 Lim Teck Kim Roadway (even numbers only). Alongside the remnant area, the whole location has an overall approximated land area of around 18,540 sq ft. The plot is zoned for commercial utilization as well as has a gross plot ratio of 5.6.
The tender for the site is going to shut on May 31 at 2pm.
Goh adds in that the site is not impacted by restrictions restricting the strata subdivision of business estate in the CBD, and that will certainly provide more adaptability to the purchaser to redevelop the plot into a strata-titled office complex. “The restrictions on strata community is expected to scrunch the supply of strata-titled workplace units in the city center, and it will aid to uphold up the demand for and rates of such office spaces.”
A 999-year leasehold business site bounded by Hoe Chiang Road as well as Lim Teck Kim Roadway in the Business district Core will be relaunched for shared sale by means of tender on May 17, according to an announcement by promotion agent PropNex Realty.
