A 99-year leasehold commercial site that is bordered with Hoe Chiang Road and Lim Teck Kim Road will go on public sale on the 19th of January in a news statement issued by the marketing agent PropNex Realty, The site is comprised of two commercial buildings as well as a small piece of land between them, comes with the reserve price at $216 million.
The buildings are situated in the 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 to the south, the whole site comprises an estimated surface of 18,540 square feet. The rectangular-shaped area is designated for commercial use and has a plot ratio gross of 5.6.
The reserve price equates in a land price of $2,602 psf/plot percentage (psf or ppr) in the case of an office building that includes the land betterment cost that is $54.1 million, as per PropNex. The consultant says that the buyer is able to develop the site into a hotel and in that case, the reserve price would be equated into a land price of $2,662 psf per plot, including the estimated land betterment cost of $60.4 million.
Tracy Goh, head of the collective sales and investment division at PropNex She points out that the two buildings currently on the plot are just five stories high. “The successful buyer could transform the site to construct 35-storey buildings to realize potential benefits due to the plot’s ratio of 5.6 according to the URA Master Plan,” she explains.
She also says the site offers a great chance to construct a new hotel or serviced apartments to cater to business and tourist. “As international travel returns post-pandemic and the government has set aside approximately $500 million to boost the tourism industry, we are expecting Singapore’s hospitality industry to experience an increase in its growth over the next couple of years.”
The site is located near it’s location in the Greater Southern Waterfront precinct and is located within walking distance of the Tanjong Pagar MRT Station, and the soon-to-be Cantonment as well as Prince Edward Road MRT Stations that are scheduled to be completed in 2026. Goh is also expecting the site to gain further benefits from the ongoing revitalization happening around it. Redevelopment projects in the region comprise Keppel South Central, Newport Tower and the former Realty Centre and the upcoming Mixed-Use development One Bernam is also located nearby.
Due to the location of the property and potential for redevelopment, Goh expects keen buying interest for the property. She says that in the wake that of property cooling measures that were announced by the government between the months of September 2022 and December 2021 the real estate market might be looking at commercial property sites that do not have to pay an additional stamp duty on buyers.
The tender for the collective sale of the site closes on Mar 22 at 2pm.