Commercial site in CBD relaunched for collective sale at $216 mil
The structures are at 1 to 9 Hoe Chiang Road (odd numbers only) as well as 2 to 10 Lim Teck Kim Road (even numbers only). Alongside the remnant land, the entire location has an overall approximated acreage of around 18,540 sq ft. The plot is zoned for industrial usage as well as has a complete plot ratio of 5.6.
A 999-year leasehold commercial site bounded by Hoe Chiang Roadway and Lim Teck Kim Road in the Downtown Core will be relaunched for shared sale by means of tender on May 17, according to an announcement by marketing representative PropNex Real estate.
Goh adds in that the site is not impacted by restrictions restricting the strata community of commercial estate in the CBD, and that will offer more flexibility to the customer to redevelop the plot right into a strata-titled office building. “The limitations on strata class is assumed to scrunch the supply of strata-titled office units in the city centre, as well as it will certainly aid to set up the necessity for and costs of such office.”
The tender for the site will shut on May 31 at 2pm.
Therefore, she expects the site at Hoe Chiang Road as well as Lim Teck Kim Roadway to draw attraction from customers, specifically given its area and tenure. “Presently, there are nothing else 999-year term industrial locations for sale in the CBD,” she adds. The site is inside walking distance of Tanjong Pagar MRT Terminal (East-West Line) along with two upcoming terminals – Cantonment also Royal prince Edward Road terminals on the Circle Line – that are register to be all set in 2026.
The area, that comprises two rows of commercial structures and also a piece of remnant land in between them, has a reserve rate of $216 million. The rate is unmodified from the former tender kicked off on Jan 19 for the spot. The tender had finalized on March 22 with no offers.
Tracy Goh, PropNex’s head of investment and cumulative sales, highlights the business zoning of the site indicates that it is not subjected to additional buyer’s stamp duty (ABSD). On top of that, the prime workplace industry remains resilient, with rental fees rising 5.1% q-o-q in 1Q2023. Goh expects the strong office industry as well as the ABSD hikes announced as part of the recent round of cooling actions to result in renewed financial investment attention in the business real estate section.
The reservation price equates to a projected land price of $2,610 psf per plot ratio (ppr) for an office enhancement, consisting of a land betterment charge (LBC) of $55 million. The buyer also has the alternative to redevelop the location as a resort project, which would place the area rate at $2,671 psf ppr, inclusive of the estimated LBC of $61.3 million, states PropNex.