Commercial site in CBD relaunched for collective sale at $216 mil
Tracy Goh, PropNex’s head of investment and also collective sales, emphasize the commercial zoning of the area suggests that it is exempt to additional buyer’s stamp duty (ABSD). In addition, the top workplace market remains resilient, with leas climbing 5.1% q-o-q in 1Q2023. Goh anticipates the healthy workplace industry as well as the ABSD increases publicized as part of the latest round of cooling down actions to create renewed financial investment interest in the business estate segment.
A 999-year leasehold commercial site bounded by Hoe Chiang Road as well as Lim Teck Kim Roadway in the Business district Core will be relaunched for cumulative sale through tender on May 17, according to an announcement by marketing agent PropNex Real estate.
The reservation price equates to a projected land rate of $2,610 psf per plot ratio (ppr) for a workplace enhancement, including a land betterment charge (LBC) of $55 million. The buyer additionally has the choice to redevelop the site as a hotel development, which would put the real estate price at $2,671 psf ppr, inclusive of the approximated LBC of $61.3 million, says PropNex.
As such, she anticipates the site at Hoe Chiang Road and Lim Teck Kim Roadway to attract attraction from customers, particularly provided its location and also tenure. “Currently, there are nothing else 999-year term commercial locations up for sale in the CBD,” she includes. The website is inside strolling distance of Tanjong Pagar MRT Station (East-West Line) along with 2 upcoming terminals – Cantonment including Prince Edward Road stations on the Circle Line – that are register to be ready in 2026.
The buildings are at 1 to 9 Hoe Chiang Road (odd numbers only) and 2 to 10 Lim Teck Kim Roadway (even numbers only). Alongside the remnant land, the overall location has an overall approximated acreage of around 18,540 sq ft. The plot is zoned for commercial use as well as has a complete plot ratio of 5.6.
The tender for the location is going to shut on May 31 at 2pm.
Goh includes that the area is not affected by limitations restricting the strata community of business real estate in the CBD, which will use more flexibility to the customer to redevelop the plot right into a strata-titled office building. “The limitations on strata class is assumed to crimp the supply of strata-titled workplace units in the city center, as well as it will aid to uphold up the demand for and costs of such office.”
The location, which comprises 2 rows of business structures and a portion of remnant land between them, has a reserve rate of $216 million. The rate is unchanged from the former tender kicked off on Jan 19 for the spot. The tender had already closed on March 22 without any bids.
