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 release issued by the marketing agent PropNex Realty, The site is comprised of two commercial buildings and a portion of land between them, comes with the reserve price in the amount of $216million.
The buildings are situated in the 1-9 Hoe Chiang Road (odd numbers only) and 2-10 Lim Teck Kim Road (even numbers only). Along with the remaining land that lies to the south, the whole site comprises an estimated land area of approximately 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 at an approximate land price of $2,602 psf/plot percentage (psf per plot ratio) in the case of an office project that includes the land betterment cost that is $54.1 million, as per PropNex. The consultant says that buyers have the option to develop the site into a hotel and in that case, the reserve price would be equated to a land cost of $2,662 psf per plot, with the estimated land betterment cost of $60.4 million.
Tracy Goh, head of collective and investment sales at PropNex She points out that the two buildings currently on the site are five storeys tall. “The successful buyer could transform the site to construct 35-storey tall towers to reap potential benefits by leveraging the plot’s proportion of 5.6 in the URA Master Plan,” she explains.
She says that the site offers a great chance to construct a new hotel or serviced apartments to accommodate business and tourists. “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 close to it’s location in the Greater Southern Waterfront precinct and is walking distance from the Tanjong Pagar MRT Station, as well as the forthcoming Cantonment as well as Prince Edward Road MRT Stations scheduled for completion in 2026. Goh expects the site to benefit further from the ongoing revitalization happening within its immediate vicinity. Redevelopment projects in the region comprise Keppel South Central, Newport Tower and the former Realty Centre and the upcoming multi-use project One Bernam is located close by.
With the site’s geographical location and the potential for redevelopment, Goh expects keen buying interest in the plot. Goh says that because that of property cooling measures that were announced by the government between the months of September 2022 and December 2021 More real estate investors might be looking at commercial property sites that aren’t subject to any an additional stamp duty on buyers.
The tender for the collective sale of the site will end on March 22nd at 2pm.