Commercial site at Hoe Chiang Road and Lim Teck Kim Road up for collective sale at $216 mil
The reservation cost goes out to a projected land price of $2,602 psf per plot ratio (psf ppr) for an office development, inclusive of a land betterment charge of $54.1 million, according to PropNex. The professional incorporates that the purchaser has the option to redevelop the area into an accommodation development, in which situation the reservation cost will equate to a property price of $2,662 psf ppr inclusive of an estimated land betterment charge of $60.4 million.
Provided the area’s place and redevelopment potential, Goh expects avid purchasing interest for the plot. She adds that in light of the property cooling measures rolled out by the government in December 2021 and also September 2022, more property investor may transform their attention to commercial real estate sites, which are exempt to additional customer’s stamp duty.
The buildings lie at 1 to 9 Hoe Chiang Road (odd numbers solely) together with 2 to 10 Lim Teck Kim Roadway (even numbers only). Alongside the portion land, the overall spot has a total approximated acreage of around 18,540 sq ft. The rectangular-shaped plot is zoned for retail use and has a gross plot ratio of 5.6.
The spot is positioned near the Greater Southern Waterfront district and also is within walking distance to the Tanjong Pagar MRT Station, in addition to the upcoming Cantonment and even Prince Edward Roadway MRT Stations and that schedule for completion in 2026. Goh also prepares for the site to even more gain from the ongoing rejuvenation occurring in its area. Redevelopment work in the area include Keppel South Central, Newport Tower and the former Realty Centre, while upcoming mixed-use project One Bernam is additionally close by.
Tracy Goh, top head of financial investment and cumulative sales at PropNex, sees that both existing buildings on the plot are only five-storeys high. “The successful buyer can redevelop this site to develop a 35-storey tower to realise possible returns from the plot ratio of 5.6 following the URA Master Plan,” she discusses.
A 999-year leasehold commercial spot marked by Hoe Chiang Roadway and Lim Teck Kim Road will be released for collective sale on Jan 19, according to a press release by promotion representative PropNex Realty, The site, which comprises 2 rows of commercial buildings and a portion of remainder land around them, has a reserve cost of $216 million.
She adds that the site offers a great chance to build a new resort or serviced flat to serve tourists plus organization tourists. “As overseas tour comes back post-pandemic and also the government having actually earmarked around $500 million to kick-start the tourism industry, we project Singapore’s hospitality sector to see a maintained recovery over the following couple of years.”
The collective sale tender for the place will finalize on Mar 22 at 2pm.