Commercial site at Hoe Chiang Road and Lim Teck Kim Road up for collective sale at $216 mil
A 999-year leasehold commercial site marked by Hoe Chiang Road as well as Lim Teck Kim Road will be introduced for cumulative sale on Jan 19, according to a press release by promotion representative PropNex Real estate, The area, which comprises two rows of commercial buildings along with a part of remnant land between them, has a reserve rate of $216 million.
Provided the area’s site and redevelopment possibility, Goh anticipates eager acquiring interest for the plot. She adds that because of the building cooling down measures rolled out by the government in December 2021 and also September 2022, more real estate investors might switch their focus to commercial property places, that are not subjected to extra customer’s stamp duty.
The reserve cost works out to a projected land rate of $2,602 psf per plot ratio (psf ppr) for a workplace property, inclusive of a land improvement fee of $54.1 million, according to PropNex. The consultant incorporates that the customer has the option to redevelop the site right into an accommodation change, in that situation the reserve price would convert to a property charge of $2,662 psf ppr inclusive of an estimated land improvement cost of $60.4 million.
The site is positioned near the Greater Southern Waterfront precinct and is just within walking proximity to the Tanjong Pagar MRT Station, along with the upcoming Cantonment and Prince Edward Road MRT Stations which schedule for finalization in 2026. Goh even anticipates the site to extra gain from the recurring restoration taking place in its vicinity. Redevelopment work in the area involve Keppel South Central, Newport Tower as well as the previous Realty Centre, whilst upcoming mixed-use property One Bernam is even close.
The buildings are located at 1 to 9 Hoe Chiang Road (odd numbers solely) together with 2 to 10 Lim Teck Kim Roadway (even numbers only). Alongside the remnant land, the entire spot has a total estimated land area of around 18,540 sq ft. The rectangular-shaped plot is zoned for commercial use furthermore has a gross plot ratio of 5.6.
She adds that the site provides a great possibility to develop a new lodging or serviced apartment to offer tourists plus organization tourists. “As international traveling resumes post-pandemic and also the authorities having reserved approximately $500 million to kick-start the tourism industry, we anticipate Singapore’s warmth industry to view a maintained recovery over the next couple of years.”
The collective sale tender for the site is going to finalize on Mar 22 at 2pm.
Tracy Goh, top head of financial investment and cumulative sales at PropNex, sees that the two standing properties on the plot are just five-storeys high. “The victorious buyer can redevelop this place to develop a 35-storey tower to find out potential gains from the plot ratio of 5.6 under the URA Master Plan,” she clarifies.