Commercial site in CBD relaunched for collective sale at $216 mil
The structures are at 1 to 9 Hoe Chiang Road (odd numbers only) and also 2 to 10 Lim Teck Kim Road (even numbers only). Along with the portion area, the overall location has an overall approximated land area of around 18,540 sq ft. The plot is zoned for business use and has a gross plot ratio of 5.6.
The tender for the site will close on May 31 at 2pm.
The location, that comprises two rows of business buildings and also a piece of remnant land in between them, has a reserve cost of $216 million. The rate is unchanged from the previous tender released on Jan 19 for the site. The tender had actually sealed on March 22 with no proposals.
The reservation cost equates to a projected land rate of $2,610 psf per plot ratio (ppr) for an office enhancement, consisting of a land betterment charge (LBC) of $55 million. The purchaser also has the alternative to redevelop the location as a resort project, which would put the area price at $2,671 psf ppr, inclusive of the approximated LBC of $61.3 million, claims PropNex.
Goh includes that the area is not impacted by limitations restricting the strata subdivision of commercial real estate in the CBD, and that will use even more versatility to the purchaser to redevelop the plot into a strata-titled office building. “The restrictions on strata class is anticipated to crimp the supply of strata-titled workplace units in the urban area centre, and also it will certainly aid to uphold up the need for and rates of such office.”
Tracy Goh, PropNex’s head of investment and cumulative sales, feature the industrial zoning of the area means that it is exempt to additional buyer’s stamp duty (ABSD). On top of that, the top office sector remains resistant, with rental fees rising 5.1% q-o-q in 1Q2023. Goh expects the strong workplace market and also the ABSD hikes declared as portion of the latest round of cooling procedures to lead to revived investment interest in the business real estate sector.
A 999-year leasehold commercial site bounded by Hoe Chiang Roadway and Lim Teck Kim Road in the Business district Core will be relaunched for shared sale via tender on May 17, according to a news release by promotion broker PropNex Real estate.
Thus, she anticipates the location at Hoe Chiang Road as well as Lim Teck Kim Roadway to draw attraction from purchasers, especially provided its place and also tenure. “Currently, there are nothing else 999-year tenure industrial sites up for sale in the CBD,” she adds. The website is within walking distance of Tanjong Pagar MRT Terminal (East-West Line) along with 2 upcoming terminals – Cantonment and Royal prince Edward Roadway terminals on the Circle Line – that are slated to be ready in 2026.