Commercial site in CBD relaunched for collective sale at $216 mil
The reserve price translates to an approximated land price of $2,610 psf per plot ratio (ppr) for a workplace development, including a land betterment charge (LBC) of $55 million. The purchaser additionally has the alternative to redevelop the site as a hotel project, which would certainly place the area rate at $2,671 psf ppr, inclusive of the approximated LBC of $61.3 million, says PropNex.
Because of this, she expects the location at Hoe Chiang Roadway as well as Lim Teck Kim Roadway to draw attention from buyers, particularly provided its area and also tenure. “Currently, there are no other 999-year tenure commercial sites available for sale in the CBD,” she includes. The website is throughout strolling range of Tanjong Pagar MRT Station (East-West Line) as well as two upcoming stations – Cantonment and Prince Edward Roadway stations on the Circle Line – which are schedule to be ready in 2026.
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). Along with the remnant place, the entire site has a total approximated land area of around 18,540 sq ft. The plot is zoned for commercial use and has a total plot ratio of 5.6.
A 999-year leasehold commercial site bounded by Hoe Chiang Roadway and Lim Teck Kim Road in the Business district Core will be relaunched for cumulative sale via tender on May 17, according to an announcement by marketing representative PropNex Real estate.
The tender for the location is going to shut on May 31 at 2pm.
The site, that consists of 2 rows of business structures and a portion of remnant land between them, has a reserve cost of $216 million. The price is the same from the former tender kicked off on Jan 19 for the site. The tender had sealed on March 22 without offers.
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Goh adds that the site is not impacted by constraints limiting the strata neighborhood of commercial real estate in the CBD, and that will certainly supply more flexibility to the buyer to redevelop the plot into a strata-titled office building. “The restrictions on strata subdivision is assumed to scrunch the supply of strata-titled office space units in the urban area center, as well as it will aid to set up the demand for and costs of such office spaces.”
Tracy Goh, PropNex’s head of investment and also collective sales, feature the business zoning of the area implies that it is exempt to additional buyer’s stamp duty (ABSD). In addition, the prime workplace market continues to be resilient, with rental fees rising 5.1% q-o-q in 1Q2023. Goh anticipates the healthier office industry as well as the ABSD hikes declared as part of the latest round of cooling down steps to result in renewed investment attention in the commercial real estate segment.
