Commercial site in CBD relaunched for collective sale at $216 mil
The area, that consists of 2 rows of business establishments and a part of remnant land in between them, has a reservation rate of $216 million. The price is the same from the past tender launched on Jan 19 for the spot. The tender had sealed on March 22 with no proposals.
Goh adds in that the area is not affected by restrictions restricting the strata neighborhood of industrial property in the CBD, which will certainly use more flexibility to the purchaser to redevelop the plot right into a strata-titled office complex. “The limitations on strata class is anticipated to scrunch the supply of strata-titled workplace units in the urban area center, and it will certainly assist to uphold up the demand for and costs of such office spaces.”
A 999-year leasehold commercial site bounded by Hoe Chiang Road as well as Lim Teck Kim Roadway in the Downtown Core will be relaunched for collective sale by means of tender on May 17, according to a press release by promotion representative PropNex Realty.
The tender for the location will shut on May 31 at 2pm.
The reserve price converts to an approximated land price of $2,610 psf per plot ratio (ppr) for a workplace property development, consisting of a land betterment charge (LBC) of $55 million. The buyer likewise has the alternative to redevelop the site as a resort development, which would put the land rate at $2,671 psf ppr, inclusive of the approximated LBC of $61.3 million, says PropNex.
Tracy Goh, PropNex’s head of investment and also cumulative sales, emphasize the industrial zoning of the area indicates that it is exempt to additional buyer’s stamp duty (ABSD). Additionally, the top workplace industry remains resistant, with rents climbing 5.1% q-o-q in 1Q2023. Goh expects the healthy office industry as well as the ABSD increases publicized as section of the recent round of cooling steps to result in restored investment interest in the business property sector.
Thus, she expects the location at Hoe Chiang Roadway and Lim Teck Kim Road to attract attention from customers, specifically given its area as well as term. “Currently, there are no other 999-year tenure industrial sites up for sale in the CBD,” she includes. The site is throughout strolling distance of Tanjong Pagar MRT Terminal (East-West Line) as well as 2 upcoming terminals – Cantonment including Prince Edward Road terminals on the Circle Line – which are register 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 Roadway (even numbers only). Together with the portion land, the whole site has an overall approximated land area of around 18,540 sq ft. The plot is zoned for business use and also has a total plot ratio of 5.6.