Commercial site in CBD relaunched for collective sale at $216 mil
Tracy Goh, PropNex’s head of investment and cumulative sales, highlights the business zoning of the place suggests that it is exempt to additional buyer’s stamp duty (ABSD). Furthermore, the top office sector continues to be durable, with rental fees rising 5.1% q-o-q in 1Q2023. Goh anticipates the strong workplace market and the ABSD increases announced as part of the new round of cooling procedures to lead to restored financial investment attention in the business real estate segment.
A 999-year leasehold commercial location bounded by Hoe Chiang Road and also Lim Teck Kim Road in the Business district Core are going to be relaunched for cumulative sale using tender on May 17, according to an announcement by marketing representative PropNex Real estate.
The establishments are at 1 to 9 Hoe Chiang Road (odd numbers only) and also 2 to 10 Lim Teck Kim Roadway (even numbers only). Alongside the remnant area, the entire location has an overall approximated land area of around 18,540 sq ft. The plot is zoned for industrial usage as well as has a total plot ratio of 5.6.
As such, she prepares for the site at Hoe Chiang Roadway and also Lim Teck Kim Road to pull attention from purchasers, specifically given its area as well as term. “Presently, there are no other 999-year tenure business locations available for sale in the CBD,” she adds. The website is throughout strolling distance of Tanjong Pagar MRT Station (East-West Line) along with two upcoming terminals – Cantonment also Royal prince Edward Road terminals on the Circle Line – which are register to be all set in 2026.
The site, which makes up 2 rows of business establishments and also a portion of remnant land in between them, has a reservation rate of $216 million. The price is unmodified from the past tender released on Jan 19 for the site. The tender had already closed on March 22 with no bids.
Goh adds that the site is not affected by limitations restricting the strata subdivision of business property in the CBD, and that will certainly supply even more versatility to the customer to redevelop the plot into a strata-titled office complex. “The constraints on strata class is anticipated to crimp the supply of strata-titled office space units in the city centre, as well as it will certainly assist to set up the necessity for and rates of such office.”
The tender for the site will close on May 31 at 2pm.
The reservation cost equates to an approximated land premium of $2,610 psf per plot ratio (ppr) for a workplace property development, including a land betterment charge (LBC) of $55 million. The customer also has the choice to redevelop the site as a resort development, which would put the land price at $2,671 psf ppr, inclusive of the approximated LBC of $61.3 million, states PropNex.