Commercial site in CBD relaunched for collective sale at $216 mil
The area, which comprises two rows of commercial structures and also a piece of remnant land in between them, has a reserve price of $216 million. The cost is the same from the previous tender released on Jan 19 for the place. The tender had already finalized on March 22 without any offers.
A 999-year leasehold commercial site bounded by Hoe Chiang Roadway and also Lim Teck Kim Roadway in the Downtown Core will be relaunched for cumulative sale by means of tender on May 17, according to a press release by marketing agent PropNex Realty.
The reservation cost equates to an approximated land price of $2,610 psf per plot ratio (ppr) for a workplace property development, consisting of a land betterment charge (LBC) of $55 million. The buyer also has the alternative to redevelop the site as a resort development, which would certainly put the real estate rate at $2,671 psf ppr, inclusive of the approximated LBC of $61.3 million, claims PropNex.
Tracy Goh, PropNex’s head of investment and also collective sales, highlights the commercial zoning of the site means that it is not subjected to additional buyer’s stamp duty (ABSD). On top of that, the prime office market remains resistant, with rents climbing 5.1% q-o-q in 1Q2023. Goh expects the healthy workplace industry and also the ABSD hikes announced as portion of the new round of cooling measures to create renewed investment attention in the retail estate sector.
Because of this, she prepares for the area at Hoe Chiang Roadway and also Lim Teck Kim Road to attract attraction from customers, specifically offered its area and also term. “Presently, there are no other 999-year tenure commercial locations available for sale in the CBD,” she includes. The site is within walking distance of Tanjong Pagar MRT Station (East-West Line) as well as two upcoming stations – Cantonment also Royal prince Edward Road terminals on the Circle Line – that are slated to be all set in 2026.
The buildings are at 1 to 9 Hoe Chiang Road (odd numbers only) and also 2 to 10 Lim Teck Kim Road (even numbers only). Alongside the remnant area, the entire site has a complete projected land area of around 18,540 sq ft. The plot is zoned for industrial utilization and also has a total plot ratio of 5.6.
The tender for the site is going to shut on May 31 at 2pm.
Goh includes that the spot is not affected by restrictions restricting the strata neighborhood of business real estate in the CBD, and that will provide even more flexibility to the customer to redevelop the plot into a strata-titled office complex. “The constraints on strata neighborhood is anticipated to crimp the supply of strata-titled workplace units in the city center, and also it will aid to set up the necessity for and rates of such office.”