Commercial site at Hoe Chiang Road and Lim Teck Kim Road up for collective sale at $216 mil
A 999-year leasehold business site marked by Hoe Chiang Road as well as Lim Teck Kim Roadway are going to be introduced for combined sale on Jan 19, according to a news release by promotion representative PropNex Real estate, The area, which makes up 2 rows of commercial structures and even a piece of remainder land amongst them, has a reservation cost of $216 million.
The cumulative sale tender for the site will close on Mar 22 at 2pm.
The spot is positioned near to the Greater Southern Waterfront district and is inside strolling range to the Tanjong Pagar MRT Station, together with the upcoming Cantonment and even Prince Edward Roadway MRT Terminals which are due for completion in 2026. Goh also expects the location to extra gain from the recurring revitalization occurring in its vicinity. Redevelopment work in the location consist of Keppel South Central, Newport Tower as well as the former Real estate Centre, while upcoming mixed-use project One Bernam is additionally close.
The premises lie at 1 to 9 Hoe Chiang Roadway (odd numbers solely) and 2 to 10 Lim Teck Kim Roadway (even numbers only). Together with the portion land, the whole location has a complete projected acreage of around 18,540 sq ft. The rectangular-shaped plot is zoned for business use and has a gross plot ratio of 5.6.
The reservation cost goes out to an approximated land fee of $2,602 psf per plot ratio (psf ppr) for an office development, inclusive of a land improvement charge of $54.1 million, according to PropNex. The consultant adds that the customer has the option to redevelop the location into an accommodation change, in that case the reserve cost will equate to a land charge of $2,662 psf ppr inclusive of an approximated land enhancement fee of $60.4 million.
Tracy Goh, head of financial investment and collective sales at PropNex, observes that both existing buildings on the plot are exclusively five-storeys high. “The fortunate purchaser can redevelop this site to develop a 35-storey tower to find out possible profits from the plot ratio of 5.6 following the URA Master Plan,” she clarifies.
Given the site’s site and redevelopment potential, Goh expects eager buying enthusiasm for the plot. She includes that taking into account the property cooling down solutions rolled out by the government in December 2021 and September 2022, more investor might turn their interest to commercial property sites, which are exempt to extra buyer’s stamp duty.
She puts that the site provides an excellent chance to construct a brand-new hotel or serviced apartment to serve vacationers and company travellers. “As foreign travel carries on post-pandemic and also the authorities having earmarked about $500 million to kick-start the tourism industry, we project Singapore’s hospitality field to observe a continual revival over the upcoming few years.”