Commercial site in CBD relaunched for collective sale at $216 mil
Tracy Goh, PropNex’s head of investment and also collective sales, feature the business zoning of the area indicates that it is exempt to additional buyer’s stamp duty (ABSD). Additionally, the prime office market stands resilient, with leas rising 5.1% q-o-q in 1Q2023. Goh anticipates the healthier workplace industry and also the ABSD hikes declared as part of the new round of cooling down procedures to create renewed investment interest in the retail estate section.
As such, she prepares for the location at Hoe Chiang Roadway and also Lim Teck Kim Roadway to attract interest from buyers, particularly given its place as well as tenure. “Currently, there are nothing else 999-year term commercial spots for sale in the CBD,” she includes. The website is within strolling distance of Tanjong Pagar MRT Station (East-West Line) along with 2 upcoming terminals – Cantonment and Royal prince Edward Roadway terminals on the Circle Line – which are slated to be ready in 2026.
The area, that comprises 2 rows of commercial buildings and also a portion of remnant land between them, has a reserve price of $216 million. The cost is unchanged from the previous tender released on Jan 19 for the spot. The tender had already sealed on March 22 without offers.
Goh adds that the site is not influenced by limitations restricting the strata subdivision of industrial property in the CBD, which will certainly use even more adaptability to the buyer to redevelop the plot right into a strata-titled office complex. “The constraints on strata community is expected to crimp the supply of strata-titled office space units in the city centre, as well as it will certainly aid to set up the demand for and rates of such workplace.”
The reservation cost translates to a projected 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 alternative to redevelop the location as a resort innovation, and that would certainly put the land rate at $2,671 psf ppr, inclusive of the estimated LBC of $61.3 million, states PropNex.
The establishments are at 1 to 9 Hoe Chiang Road (odd numbers only) and also 2 to 10 Lim Teck Kim Road (even numbers only). Together with the remnant area, the entire site has a complete estimated acreage of around 18,540 sq ft. The plot is zoned for business utilization as well as has a gross plot ratio of 5.6.
The tender for the spot will close on May 31 at 2pm.
A 999-year leasehold commercial spot bounded by Hoe Chiang Road and also Lim Teck Kim Roadway in the Downtown Core are going to be relaunched for cumulative sale by means of tender on May 17, according to an announcement by promotion agent PropNex Real estate.