Commercial site in CBD relaunched for collective sale at $216 mil
A 999-year leasehold business site bounded by Hoe Chiang Road as well as Lim Teck Kim Road in the Business district Core will be relaunched for cumulative sale through tender on May 17, according to an announcement by marketing broker PropNex Real estate.
The tender for the spot is going to close on May 31 at 2pm.
The buildings are at 1 to 9 Hoe Chiang Road (odd numbers only) as well as 2 to 10 Lim Teck Kim Road (even numbers only). Alongside the portion place, the overall site has a total approximated land area of around 18,540 sq ft. The plot is zoned for commercial use as well as has a complete plot ratio of 5.6.
Thus, she anticipates the site at Hoe Chiang Roadway as well as Lim Teck Kim Road to pull attention from purchasers, especially given its place as well as tenure. “Presently, there are no other 999-year tenure industrial sites available for sale in the CBD,” she adds. The site is within walking range of Tanjong Pagar MRT Station (East-West Line) along with two upcoming terminals – Cantonment and Royal prince Edward Roadway stations on the Circle Line – that are schedule to be ready in 2026.
Tracy Goh, PropNex’s head of investment and cumulative sales, feature the business zoning of the area indicates that it is not subjected to additional buyer’s stamp duty (ABSD). Additionally, the prime office market remains durable, with leas rising 5.1% q-o-q in 1Q2023. Goh anticipates the strong workplace market and also the ABSD hikes declared as portion of the new round of cooling down steps to create restored investment interest in the business property section.
The reservation cost translates to a projected land premium of $2,610 psf per plot ratio (ppr) for an office property development, consisting of a land betterment charge (LBC) of $55 million. The customer also has the choice to redevelop the site as a resort innovation, and that would place the real estate rate at $2,671 psf ppr, inclusive of the approximated LBC of $61.3 million, says PropNex.
The area, that makes up two rows of commercial buildings and also a piece of remnant land between them, has a reserve price of $216 million. The rate is the same from the former tender released on Jan 19 for the spot. The tender had actually finalized on March 22 without any proposals.
Goh adds in that the spot is not affected by limitations limiting the strata subdivision of commercial property in the CBD, which will use even more versatility to the customer to redevelop the plot right into a strata-titled office complex. “The constraints on strata subdivision is assumed to crimp the supply of strata-titled office space units in the city centre, and also it will help to prop up the demand for and costs of such office spaces.”
