Commercial site in CBD relaunched for collective sale at $216 mil
The structures are at 1 to 9 Hoe Chiang Road (odd numbers only) as well as 2 to 10 Lim Teck Kim Roadway (even numbers only). Together with the remnant place, the overall site has a complete projected acreage of around 18,540 sq ft. The plot is zoned for commercial usage and has a complete plot ratio of 5.6.
The tender for the site is going to close on May 31 at 2pm.
The reserve rate equates to a projected land premium of $2,610 psf per plot ratio (ppr) for an office enhancement, consisting of a land betterment charge (LBC) of $55 million. The buyer also has the choice to redevelop the site as a hotel innovation, which would place the area rate at $2,671 psf ppr, inclusive of the quoted LBC of $61.3 million, says PropNex.
A 999-year leasehold business site bounded by Hoe Chiang Road and also Lim Teck Kim Road in the Downtown Core are going to be relaunched for collective sale through tender on May 17, according to a news release by promotion agent PropNex Realty.
Therefore, she expects the location at Hoe Chiang Roadway as well as Lim Teck Kim Road to attract attention from purchasers, particularly provided its location and tenure. “Presently, there are nothing else 999-year term industrial locations up for sale in the CBD,” she includes. The site is within strolling distance of Tanjong Pagar MRT Terminal (East-West Line) as well as two upcoming terminals – Cantonment and Prince Edward Roadway stations on the Circle Line – that are register to be ready in 2026.
Tracy Goh, PropNex’s head of investment and also collective sales, emphasize the commercial zoning of the site suggests that it is exempt to additional buyer’s stamp duty (ABSD). On top of that, the prime workplace market continues to be durable, with rental fees increasing 5.1% q-o-q in 1Q2023. Goh anticipates the healthier workplace industry and the ABSD hikes announced as section of the latest round of cooling actions to lead to renewed financial investment interest in the retail property sector.
The site, that makes up 2 rows of commercial establishments and also a piece of remnant land between them, has a reservation cost of $216 million. The rate is unmodified from the former tender released on Jan 19 for the spot. The tender had closed on March 22 without bids.
Goh adds in that the site is not affected by restrictions restricting the strata neighborhood of commercial real estate in the CBD, which will certainly offer even more versatility to the customer to redevelop the plot into a strata-titled office building. “The restrictions on strata class is assumed to scrunch the supply of strata-titled office units in the urban area centre, as well as it will help to prop up the demand for and rates of such office.”