Commercial site at Hoe Chiang Road and Lim Teck Kim Road up for collective sale at $216 mil
Tracy Goh, top head of investment and collective sales at PropNex, sees that the two existing buildings on the plot are only five-storeys high. “The successful customer can redevelop this place to build a 35-storey high rise to grasp possible gains from the plot ratio of 5.6 following the URA Master Plan,” she explains.
A 999-year leasehold business spot marked by Hoe Chiang Roadway as well as Lim Teck Kim Road are going to be launched for combined sale on Jan 19, according to a press release by promotion rep PropNex Realty, The site, which makes up 2 rows of commercial establishments and even a piece of remnant land around them, has a reservation rate of $216 million.
The spot is located close to the Greater Southern Waterfront precinct and also is within walking distance to the Tanjong Pagar MRT Terminal, in addition to the upcoming Cantonment and Prince Edward Roadway MRT Stations and that are due for completion in 2026. Goh also anticipates the location to extra gain from the continuous rejuvenation occurring in its vicinity. Redevelopment projects in the area include Keppel South Central, Newport Tower and also the former Real estate Centre, whilst upcoming mixed-use property One Bernam is additionally close.
The reservation price works out to a projected land price of $2,602 psf per plot ratio (psf ppr) for a workplace property, inclusive of a land enhancement cost of $54.1 million, according to PropNex. The professional includes that the buyer has the option to redevelop the site right into an accommodation development, in which case the reserve price would equate to a property charge of $2,662 psf ppr inclusive of an estimated land improvement fee of $60.4 million.
The premises rise at 1 to 9 Hoe Chiang Roadway (odd numbers solely) and 2 to 10 Lim Teck Kim Road (even numbers only). Alongside the portion land, the entire site has a complete estimated land area of around 18,540 sq ft. The rectangular-shaped plot is zoned for profitable usage and has a gross plot ratio of 5.6.
She includes that the location provides a good opportunity to develop a new hotel or serviced residence to serve vacationers and company travellers. “As international tour comes back post-pandemic and the government having actually earmarked about $500 million to kick-start the tourism sector, we project Singapore’s warmth market to see a sustained improvement over the upcoming couple of years.”
The cumulative sale tender for the site will finalize on Mar 22 at 2pm.
Given the area’s location and redevelopment potential, Goh expects eager purchasing interest for the plot. She includes that taking into account the real estate cooling solutions rolled out by the government in December 2021 and September 2022, even more property investor may transform their attention to commercial real property places, that are exempt to additional buyer’s stamp responsibility.