A 99-year leasehold commercial site which is bounded by Hoe Chiang Road and Lim Teck Kim Road in the Downtown Core will be relaunched to tender for a collective sale on May 17 as per a press statement issued by the marketing agent PropNex Realty.
The Myst condo price was acquired for S$126.3 million, the residential development is 16,630 sq ft and is in a prime location. It has a plot ratio of 2.1, is zoned residential, and is set to offer 1, 2, 3, and 4-bedroom units.
The site includes two rows of commercial structures as well as a small piece of land in between, has an estimated reserve at $216 million. The price remains the same as the tender that was that was launched on January 19, for this site. The tender was closed on March 22 without bids.
The reserve price is an estimated land price of $2,610 psf/plot percentage (ppr) for office developments, with a land betterment fee (LBC) in the amount of $55million. The buyer has also the option of redeveloping the site to be a hotel development and set the land price at $2,671 per square foot ppr including what is estimated to be the LBC which is $61.3 million, according to PropNex.
The buildings are located at 1-9 Hoe Chiang Road (odd numbers only) and 2-10 Lim Teck Kim Road (even numbers only). Together with the land that remains that lies on the site, the whole site comprises an estimated surface of approximately 18,540 square feet. The land is designated for commercial use and has an overall proportion of 5.6.
Tracy Goh, PropNex’s head of collective and investment sales She explains that the commercial zone that is on the site ensures that it is not subject to the additional buyers stamp duty (ABSD). Furthermore, the primary office market is robust, with rents increasing 5.1% q-o-q in 1Q2023. Goh anticipates that the stable office market as well as the ABSD increases announced as part of the most recent series of measures for cooling to bring about increased interest in investing within commercial property segment.
So, she anticipates the site located at Hoe Chiang Road and Lim Teck Kim Road to generate attention from potential buyers, particularly due to its location and duration. “Currently there aren’t other commercial sites to be sold within this CBD,” she adds. The site is located within walking distance to Tanjong Pagar MRT Station (East-West Line) and two stations that are scheduled to open in the near future which include Cantonment as well as Prince Edward Road stations on the Circle Line – which are expected to be operational by 2026.
Goh says that the site isn’t subject to restrictions on an strata subdivision for commercial property within the CBD, which gives buyers more freedom to develop the land into a office building that is strata-titled. “The restrictions regarding strata subdivisions are likely to limit the availability of office spaces in the city centre and this will boost the demand and the cost of these office space.”
Tenders for this site closes on May 31st at 2pm.