Commercial site at Hoe Chiang Road and Lim Teck Kim Road up for collective sale at $216 mil
A 999-year leasehold business spot marked by Hoe Chiang Roadway and also Lim Teck Kim Road are going to be launched for cumulative sale on Jan 19, according to a press release by promotion agent PropNex Realty, The area, which makes up two rows of business buildings and a part of portion land between them, has a reserve rate of $216 million.
Provided the site’s place and redevelopment capability, Goh anticipates keen buying interest for the plot. She adds that taking into account the property cooling down strategies rolled out by the government in December 2021 and also September 2022, more investor might switch their attention to commercial real property sites, which are exempt to extra customer’s stamp responsibility.
The collective sale tender for the site will finalize on Mar 22 at 2pm.
The structures rise at 1 to 9 Hoe Chiang Road (odd numbers only) together with 2 to 10 Lim Teck Kim Road (even numbers only). In addition to the remnant land, the overall location has a complete estimated land area of around 18,540 sq ft. The rectangular-shaped plot is zoned for commercial usage and has a gross plot ratio of 5.6.
Tracy Goh, top head of investment and also collective sales at PropNex, recognizes that both existing structures on the plot are only five-storeys high. “The victorious buyer can redevelop this site to build a 35-storey tower to realise possible returns from the plot ratio of 5.6 under the URA Master Plan,” she describes.
The reserve rate works out to an estimated land fee of $2,602 psf per plot ratio (psf ppr) for an office property, inclusive of a land improvement fee of $54.1 million, according to PropNex. The consultant includes that the buyer has the option to redevelop the area right into a lodge change, in that case the reserve rate will equate to a property charge of $2,662 psf ppr inclusive of an approximated land betterment cost of $60.4 million.
She includes that the location presents an excellent opportunity to construct a brand-new lodging or serviced apartment to help tourists plus business travellers. “As overseas traveling comes back post-pandemic and the state having actually reserved about $500 million to kick-start the tourism sector, we expect Singapore’s warmth industry to view a sustained recovery over the upcoming couple of years.”
The location is positioned close to the Greater Southern Waterfront precinct and also is just within strolling proximity to the Tanjong Pagar MRT Station, together with the upcoming Cantonment and even Prince Edward Roadway MRT Stations and that are due for completion in 2026. Goh even expects the location to further benefit from the recurring restoration occurring in its location. Redevelopment ventures in the location consist of Keppel South Central, Newport Tower and the former Realty Centre, while upcoming mixed-use property One Bernam is even close.
