Commercial site in CBD relaunched for collective sale at $216 mil
Tracy Goh, PropNex’s head of investment and cumulative sales, feature the business zoning of the area indicates that it is not subjected to additional buyer’s stamp duty (ABSD). On top of that, the prime office market remains resistant, with leas rising 5.1% q-o-q in 1Q2023. Goh anticipates the healthy workplace industry as well as the ABSD hikes publicized as section of the latest round of cooling actions to result in restored financial investment interest in the commercial real estate sector.
As such, she anticipates the site at Hoe Chiang Road as well as Lim Teck Kim Road to draw attention from customers, especially offered its area and term. “Presently, there are nothing else 999-year tenure industrial spots for sale in the CBD,” she adds. The website is within walking distance of Tanjong Pagar MRT Station (East-West Line) as well as two upcoming stations – Cantonment also Prince Edward Roadway terminals on the Circle Line – which are register to be all set in 2026.
The site, that comprises two rows of business buildings and a portion of remnant land in between them, has a reservation cost of $216 million. The price is the same from the past tender launched on Jan 19 for the site. The tender had closed on March 22 without bids.
The buildings are at 1 to 9 Hoe Chiang Road (odd numbers only) and 2 to 10 Lim Teck Kim Roadway (even numbers only). Together with the portion area, the entire site has an overall estimated acreage of around 18,540 sq ft. The plot is zoned for business use and has a complete plot ratio of 5.6.
Goh includes that the site is not impacted by constraints limiting the strata subdivision of business real estate in the CBD, which will certainly offer even more versatility to the purchaser to redevelop the plot into a strata-titled office complex. “The restrictions on strata neighborhood is anticipated to scrunch the supply of strata-titled workplace units in the city centre, and also it will certainly aid to uphold up the necessity for and rates of such office spaces.”
A 999-year leasehold commercial site bounded by Hoe Chiang Roadway as well as Lim Teck Kim Road in the Downtown Core will be relaunched for collective sale using tender on May 17, according to an announcement by promotion representative PropNex Real estate.
The reserve rate converts to a projected land rate of $2,610 psf per plot ratio (ppr) for a workplace enhancement, consisting of a land betterment charge (LBC) of $55 million. The buyer likewise has the option to redevelop the location as a resort development, and that would put the real estate price at $2,671 psf ppr, inclusive of the approximated LBC of $61.3 million, states PropNex.
The tender for the site is going to shut on May 31 at 2pm.
