SINGAPORE (EDGEPROP) - A four-storey apartment building at 41 & 43 Thomson Road has been put up for sale by private treaty with an asking price of $18.5 million. The property is marketed by property consultancy Delasa.

According to a press release by the marketing agent, the freehold apartment building is being sold by a family-owned company which built the development, Kartar Apartments, in the 1980s.

The property sits on a 7,300 sq ft plot and has a gross floor area (GFA) of 8,300 sq ft. The asking price translates to a land rate of $917 psf per plot ratio, including development charges, says Delasa. “At this price, a developer may expect to break-even at around $1,800 psf, subject to approvals from the authorities,” says Karamjit Singh, CEO of Delasa.

The site is zoned “residential” under the latest Master Plan with an allowable plot ratio of 2.8. This results in a potential GFA of 20,400 sq ft, subject to approvals.

The building is about 300m from United Square Shopping Mall and is also close to Novena MRT Station on the North-South Line.

According to the press release, this development has initially been put up for sale in November 2021 with an asking price of $18 million. A buyer initially exercised the option to purchase the property that month, but could not complete the purchase due to financing issues.

“In the process, the purchaser had obtained an advice from the Urban Redevelopment Authority in response to a provisional permission application supporting the redevelopment of the plot into a serviced apartment development,” says Singh.

He adds that this makes the redevelopment opportunities for the site more attractive for developers or investors to capitalise on the tight rental market. The site could be redeveloped into an apartment development with 22 units with an average size of 915 sq ft, says Singh.

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