Commercial site in CBD relaunched for collective sale at $216 mil
The establishments are at 1 to 9 Hoe Chiang Road (odd numbers only) as well as 2 to 10 Lim Teck Kim Road (even numbers only). Along with the portion land, the overall site has an overall estimated land area of around 18,540 sq ft. The plot is zoned for business usage and has a gross plot ratio of 5.6.
Tracy Goh, PropNex’s head of investment and also collective sales, feature the business zoning of the site implies that it is exempt to additional buyer’s stamp duty (ABSD). Furthermore, the main workplace industry continues to be resistant, with rental fees increasing 5.1% q-o-q in 1Q2023. Goh anticipates the healthier workplace market and also the ABSD hikes announced as portion of the new round of cooling measures to lead to revived investment interest in the retail estate segment.
A 999-year leasehold commercial site bounded by Hoe Chiang Roadway and also Lim Teck Kim Road in the Downtown Core will be relaunched for shared sale using tender on May 17, according to a press release by promotion broker PropNex Real estate.
The tender for the spot is going to close on May 31 at 2pm.
As such, she expects the location at Hoe Chiang Roadway and also Lim Teck Kim Roadway to draw attention from purchasers, especially offered its location and also tenure. “Currently, there are nothing else 999-year term business spots for sale in the CBD,” she includes. The website is within strolling distance of Tanjong Pagar MRT Station (East-West Line) as well as two upcoming terminals – Cantonment and Prince Edward Roadway stations on the Circle Line – which are register to be all set in 2026.
The reservation rate translates to an approximated land premium of $2,610 psf per plot ratio (ppr) for an office development, including a land betterment charge (LBC) of $55 million. The buyer also has the choice to redevelop the site as a hotel project, which would certainly place the land price at $2,671 psf ppr, inclusive of the estimated LBC of $61.3 million, states PropNex.
The site, which comprises two rows of business structures and also a piece of remnant land in between them, has a reservation rate of $216 million. The cost is the same from the former tender released on Jan 19 for the site. The tender had already sealed on March 22 without proposals.
Goh adds that the spot is not impacted by limitations limiting the strata subdivision of industrial real estate in the CBD, which will certainly supply more flexibility to the purchaser to redevelop the plot into a strata-titled office complex. “The restrictions on strata subdivision is expected to scrunch the supply of strata-titled workplace units in the city centre, and also it will certainly aid to uphold up the necessity for and rates of such office.”