A leasehold for 999 years on a 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 release issued by PropNex Realty, the marketing agency. PropNex Realty.
The site includes two commercial buildings as well as a small piece of land in between, has an estimated reserve in the amount of $216million. The price remains the same as the tender that was which was announced on Jan 19, for this site. The tender ended on March 22 without bids.
The reserve price corresponds to an estimated land price of $2,610 psf/plot percentage (ppr) for an office building, which includes the land betterment cost (LBC) that is $55 million. The buyer has the option of redeveloping the site into a hotel that would set the land cost at $2,671 per square foot ppr which includes an estimated LBC at $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 is estimated to have a total land area of 18,540 square feet. The land is classified as commercial and has an average proportion of 5.6.
Tracy Goh, PropNex’s head of collective and investment sales 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 strong, with rents growing 5.1% q-o-q in 1Q2023. Goh anticipates that the stable office market, as well as the ABSD hikes that were announced in the latest set of cooling initiatives to bring about an increase in investment interest for commercial property segment.
In this regard, she expects 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 any other commercial sites available for sale located in Singapore’s CBD,” she adds. The site is located within walking distance to Tanjong Pagar MRT Station (East-West Line) along with 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 scheduled to be completed in 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 transform the property into a building with a strata-titled title. “The restrictions on strata subdivision are expected to reduce the availability of office spaces in the city center, and this will boost the demand and the cost of these office space.”
This tender to purchase the site closes on May 31st at 2pm.