Commercial site in CBD relaunched for collective sale at $216 mil
A 999-year leasehold commercial spot bounded by Hoe Chiang Roadway and Lim Teck Kim Roadway in the Business district Core are going to be relaunched for shared sale by means of tender on May 17, according to a press release by promotion broker PropNex Real estate.
Goh adds in that the spot is not impacted by limitations restricting the strata community of commercial property in the CBD, which will certainly provide more versatility to the customer to redevelop the plot into a strata-titled office complex. “The limitations on strata neighborhood is assumed to scrunch the supply of strata-titled office units in the city center, and it will certainly aid to uphold up the need for and rates of such office.”
The buildings are at 1 to 9 Hoe Chiang Road (odd numbers only) and 2 to 10 Lim Teck Kim Roadway (even numbers only). Along with the remnant area, the whole site has an overall approximated land area of around 18,540 sq ft. The plot is zoned for industrial use and has a gross plot ratio of 5.6.
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 an office enhancement, including a land betterment charge (LBC) of $55 million. The purchaser additionally has the alternative to redevelop the site as a resort innovation, which would place the area price at $2,671 psf ppr, inclusive of the approximated LBC of $61.3 million, claims PropNex.
Therefore, she prepares for the area at Hoe Chiang Roadway and Lim Teck Kim Road to attract attention from customers, especially offered its place and also tenure. “Presently, there are nothing else 999-year tenure business sites up for sale in the CBD,” she adds. The website is throughout walking distance of Tanjong Pagar MRT Station (East-West Line) along with 2 upcoming terminals – Cantonment and Royal prince Edward Roadway stations on the Circle Line – which are slated to be prepared in 2026.
The site, that consists of two rows of business structures and a part of remnant land in between them, has a reservation rate of $216 million. The cost is unmodified from the past tender released on Jan 19 for the site. The tender had already closed on March 22 without any bids.
Tracy Goh, PropNex’s head of investment and also collective sales, emphasize the industrial zoning of the area suggests that it is not subjected to additional buyer’s stamp duty (ABSD). Furthermore, the prime workplace market continues to be durable, with rents rising 5.1% q-o-q in 1Q2023. Goh anticipates the healthy office industry as well as the ABSD increases announced as part of the latest round of cooling down actions to result in restored financial investment attention in the business real estate segment.
