Commercial site at Hoe Chiang Road and Lim Teck Kim Road up for collective sale at $216 mil
Given the area’s location and redevelopment capability, Goh expects keen purchasing enthusiasm for the plot. She includes that due to the real estate cooling measures rolled out by the government in December 2021 and September 2022, more real estate investors might switch their interest to commercial property places, that are not subjected to additional buyer’s stamp responsibility.
The collective sale tender for the site will close on Mar 22 at 2pm.
A 999-year leasehold commercial spot bounded by Hoe Chiang Road and also Lim Teck Kim Roadway will be introduced for combined sale on Jan 19, according to a press release by marketing agent PropNex Real estate, The place, which makes up two rows of business establishments and even a piece of portion land between them, has a reservation rate of $216 million.
The reservation price goes out to an approximated land price of $2,602 psf per plot ratio (psf ppr) for a business project, inclusive of a land betterment cost of $54.1 million, according to PropNex. The expert incorporates that the customer has the choice to redevelop the location into an accommodation property, in that situation the reservation cost would translate to a land charge of $2,662 psf ppr inclusive of a projected land enhancement fee of $60.4 million.
The spot is positioned near the Greater Southern Waterfront precinct and is just within walking distance to the Tanjong Pagar MRT Terminal, along with the upcoming Cantonment and Prince Edward Road MRT Stations and that are due for completion in 2026. Goh even expects the location to even more benefit from the continuous rejuvenation happening in its area. Redevelopment projects in the location include Keppel South Central, Newport Tower as well as the past Real estate Centre, while upcoming mixed-use project One Bernam is even nearby.
She adds that the site presents a great opportunity to construct a new lodging or serviced residence to help travelers and organization travellers. “As overseas tour comes back post-pandemic and the state having allowed approximately $500 million to kick-start the tourism market, we expect Singapore’s warmth field to observe a sustained recovery over the next couple of years.”
The buildings stand at 1 to 9 Hoe Chiang Roadway (odd numbers only) and 2 to 10 Lim Teck Kim Roadway (even numbers only). Together with the remnant land, the whole location has a complete estimated land area of around 18,540 sq ft. The rectangular-shaped plot is zoned for business use and has a gross plot ratio of 5.6.
Tracy Goh, head of financial investment and also collective sales at PropNex, observes that the two standing buildings on the plot are just five-storeys high. “The victorious purchaser can redevelop this site to develop a 35-storey tower to grasp prospective profits from the plot ratio of 5.6 under the URA Master Plan,” she explains.
