Commercial site at Hoe Chiang Road and Lim Teck Kim Road up for collective sale at $216 mil
A 999-year leasehold commercial location marked by Hoe Chiang Roadway and Lim Teck Kim Roadway will be released for collective sale on Jan 19, according to a press release by promotion rep PropNex Real estate, The site, which makes up 2 rows of business establishments and a part of remainder land around them, has a reserve price of $216 million.
She puts that the site offers a great opportunity to construct a new hotel or serviced flat to offer tourists and company travellers. “As foreign traveling resumes post-pandemic and also the authorities having actually earmarked approximately $500 million to kick-start the tourism market, we anticipate Singapore’s hospitality field to see a continual improvement over the upcoming couple of years.”
The reservation price goes out to an approximated land fee of $2,602 psf per plot ratio (psf ppr) for an office project, inclusive of a land betterment fee of $54.1 million, according to PropNex. The professional adds that the customer has the alternative to redevelop the site right into a hotel development, in that instance the reservation rate would certainly translate to a land charge of $2,662 psf ppr inclusive of a projected land betterment fee of $60.4 million.
Offered the area’s place and redevelopment capability, Goh expects eager buying interest for the plot. She replies that because of the property cooling down measures rolled out by the administration in December 2021 and September 2022, many more investor might switch their attention to commercial real property places, which are not subjected to added buyer’s stamp responsibility.
The spot is positioned close to the Greater Southern Waterfront precinct and is just within strolling proximity to the Tanjong Pagar MRT Station, along with the upcoming Cantonment and even Prince Edward Roadway MRT Terminals and that schedule for finalization in 2026. Goh also prepares for the spot to extra gain from the recurring rejuvenation happening in its area. Redevelopment projects in the area involve Keppel South Central, Newport Tower and also the former Real estate Centre, while upcoming mixed-use project One Bernam is additionally close by.
Tracy Goh, top head of investment and also collective sales at PropNex, sees that the two existing properties on the plot are only five-storeys high. “The fortunate purchaser can redevelop this site to develop a 35-storey high rise to find out potential returns from the plot ratio of 5.6 following the URA Master Plan,” she describes.
The premises lie at 1 to 9 Hoe Chiang Road (odd numbers only) and 2 to 10 Lim Teck Kim Roadway (even numbers only). Together with the portion land, the entire site has a total projected acreage of around 18,540 sq ft. The rectangular-shaped plot is zoned for retail use furthermore has a gross plot ratio of 5.6.
The cumulative sale tender for the place will finalize on Mar 22 at 2pm.