Commercial site in CBD relaunched for collective sale at $216 mil
Tracy Goh, PropNex’s head of investment and also cumulative sales, highlights the commercial zoning of the area suggests that it is not subjected to additional buyer’s stamp duty (ABSD). Additionally, the top office market stands resilient, with rents rising 5.1% q-o-q in 1Q2023. Goh expects the healthier office market and also the ABSD increases declared as portion of the latest round of cooling actions to create revived financial investment attention in the retail estate section.
Thus, she expects the site at Hoe Chiang Road as well as Lim Teck Kim Road to attract attraction from purchasers, particularly given its area as well as tenure. “Currently, there are nothing else 999-year tenure business locations for sale in the CBD,” she includes. The site is inside walking distance of Tanjong Pagar MRT Terminal (East-West Line) along with two upcoming stations – Cantonment including Prince Edward Roadway stations on the Circle Line – that are slated to be prepared in 2026.
The area, which consists of 2 rows of business structures and also a part of remnant land in between them, has a reservation rate of $216 million. The rate is the same from the former tender released on Jan 19 for the site. The tender had sealed on March 22 without proposals.
The tender for the spot will close on May 31 at 2pm.
The reserve rate translates to an approximated land rate of $2,610 psf per plot ratio (ppr) for a workplace property development, including a land betterment charge (LBC) of $55 million. The customer likewise has the option to redevelop the site as a hotel project, and that would certainly put the land rate at $2,671 psf ppr, inclusive of the estimated LBC of $61.3 million, says PropNex.
Goh adds that the area is not influenced by constraints restricting the strata subdivision of commercial property in the CBD, and that will certainly use more flexibility to the buyer to redevelop the plot into a strata-titled office building. “The limitations on strata community is expected to scrunch the supply of strata-titled office space units in the city centre, and it will certainly assist to prop up the necessity for and costs of such office.”
A 999-year leasehold business spot bounded by Hoe Chiang Roadway and also Lim Teck Kim Road in the Downtown Core are going to be relaunched for shared sale via tender on May 17, according to a press release by marketing representative PropNex Realty.
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). Along with the portion area, the overall site has an overall estimated land area of around 18,540 sq ft. The plot is zoned for industrial use and also has a gross plot ratio of 5.6.