Commercial site in CBD relaunched for collective sale at $216 mil
A 999-year leasehold commercial site bounded by Hoe Chiang Road as well as Lim Teck Kim Road in the Business district Core will be relaunched for cumulative sale via tender on May 17, according to a news release by marketing broker PropNex Realty.
The establishments are at 1 to 9 Hoe Chiang Road (odd numbers only) and also 2 to 10 Lim Teck Kim Roadway (even numbers only). Alongside the remnant place, the entire site has a complete projected land area of around 18,540 sq ft. The plot is zoned for business utilization and has a gross plot ratio of 5.6.
Goh adds that the site is not affected by limitations restricting the strata community of industrial estate in the CBD, which will certainly use even more flexibility to the purchaser to redevelop the plot right into a strata-titled office complex. “The limitations on strata community is assumed to crimp the supply of strata-titled office space units in the city center, and it will help to uphold up the need for and rates of such office spaces.”
The tender for the site is going to close on May 31 at 2pm.
Therefore, she anticipates the area at Hoe Chiang Road as well as Lim Teck Kim Roadway to attract interest from purchasers, especially offered its place as well as term. “Currently, there are no other 999-year term commercial sites for sale in the CBD,” she adds. The site is within strolling distance of Tanjong Pagar MRT Terminal (East-West Line) along with 2 upcoming terminals – Cantonment also Royal prince Edward Road stations on the Circle Line – which are schedule to be all set in 2026.
The area, which consists of 2 rows of business buildings and also a portion of remnant land between them, has a reserve rate of $216 million. The cost is unchanged from the previous tender launched on Jan 19 for the spot. The tender had already closed on March 22 with no offers.
The reservation rate converts to an approximated land rate of $2,610 psf per plot ratio (ppr) for an office development, consisting of a land betterment charge (LBC) of $55 million. The customer likewise has the alternative to redevelop the site as a hotel innovation, and that would place the land rate at $2,671 psf ppr, inclusive of the approximated LBC of $61.3 million, states PropNex.
Tracy Goh, PropNex’s head of investment and collective sales, feature the business zoning of the place means that it is exempt to additional buyer’s stamp duty (ABSD). On top of that, the top office sector stands durable, with rental fees increasing 5.1% q-o-q in 1Q2023. Goh expects the strong workplace market and the ABSD hikes publicized as section of the new round of cooling down procedures to create renewed financial investment attention in the business estate section.