Commercial site in CBD relaunched for collective sale at $216 mil
The reservation rate equates to an approximated land price of $2,610 psf per plot ratio (ppr) for an office property development, including a land betterment charge (LBC) of $55 million. The buyer also has the option to redevelop the location as a hotel innovation, which would certainly put the land price at $2,671 psf ppr, inclusive of the estimated LBC of $61.3 million, claims PropNex.
The site, which comprises two rows of commercial buildings and a piece of remnant land in between them, has a reservation cost of $216 million. The rate is unmodified from the previous tender released on Jan 19 for the place. The tender had already sealed on March 22 without offers.
Tracy Goh, PropNex’s head of investment and collective sales, emphasize the industrial zoning of the place implies that it is not subjected to additional buyer’s stamp duty (ABSD). Additionally, the prime workplace sector stands resilient, with rents increasing 5.1% q-o-q in 1Q2023. Goh anticipates the healthier workplace industry as well as the ABSD increases declared as section of the recent round of cooling actions to result in renewed financial investment attention in the business estate segment.
Because of this, she prepares for the site at Hoe Chiang Roadway as well as Lim Teck Kim Roadway to attract attention from buyers, especially offered its location as well as tenure. “Currently, there are nothing else 999-year tenure business locations 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 including Royal prince Edward Roadway terminals on the Circle Line – that are schedule to be ready in 2026.
Goh adds that the spot is not affected by limitations limiting the strata neighborhood of business estate in the CBD, which will certainly offer even more versatility to the purchaser to redevelop the plot right into a strata-titled office building. “The limitations on strata class is assumed to crimp the supply of strata-titled workplace units in the urban area center, and also it will certainly aid to set up the necessity for and prices of such workplace.”
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 portion land, the overall location has an overall projected land area of around 18,540 sq ft. The plot is zoned for business use as well as has a total plot ratio of 5.6.
A 999-year leasehold business location bounded by Hoe Chiang Road and also Lim Teck Kim Road in the Downtown Core are going to be relaunched for cumulative sale via tender on May 17, according to a press release by marketing representative PropNex Realty.
The tender for the location will shut on May 31 at 2pm.