Commercial site in CBD relaunched for collective sale at $216 mil
The buildings 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 portion land, the whole location has a complete approximated land area of around 18,540 sq ft. The plot is zoned for commercial use and also has a gross plot ratio of 5.6.
The site, that consists of two rows of business establishments and a piece of remnant land between them, has a reservation rate of $216 million. The price is unchanged from the past tender kicked off on Jan 19 for the place. The tender had actually closed on March 22 without any offers.
Goh includes that the area is not affected by constraints limiting the strata subdivision of industrial real estate in the CBD, and that will certainly supply more versatility to the purchaser to redevelop the plot into a strata-titled office building. “The constraints on strata community is assumed to scrunch the supply of strata-titled office space units in the urban area center, and it will certainly assist to prop up the need for and costs of such office spaces.”
Tracy Goh, PropNex’s head of investment and also collective sales, highlights the industrial zoning of the place implies that it is exempt to additional buyer’s stamp duty (ABSD). Additionally, the prime office sector stands resilient, with rents increasing 5.1% q-o-q in 1Q2023. Goh anticipates the healthy workplace industry and also the ABSD hikes publicized as section of the new round of cooling down actions to lead to restored financial investment attention in the retail estate sector.
The reservation rate converts to a projected land premium of $2,610 psf per plot ratio (ppr) for an office development, consisting of a land betterment charge (LBC) of $55 million. The buyer also has the option to redevelop the location as a hotel development, which would put the land rate at $2,671 psf ppr, inclusive of the quoted LBC of $61.3 million, claims PropNex.
The tender for the spot is going to shut on May 31 at 2pm.
A 999-year leasehold commercial location bounded by Hoe Chiang Roadway and also Lim Teck Kim Road in the Downtown Core will be relaunched for collective sale via tender on May 17, according to an announcement by promotion agent PropNex Real estate.
As such, she prepares for the area at Hoe Chiang Road and also Lim Teck Kim Road to pull attention from buyers, particularly offered its location and term. “Presently, there are nothing else 999-year tenure business locations available for sale in the CBD,” she adds. The site is within walking distance of Tanjong Pagar MRT Station (East-West Line) along with two upcoming stations – Cantonment and Royal prince Edward Roadway terminals on the Circle Line – which are register to be prepared in 2026.