Commercial site in CBD relaunched for collective sale at $216 mil
The existing building on Lim Teck Kim Road (Picture: PropNex)
SINGAPORE (EDGEPROP) - A 999-year leasehold commercial site bounded by Hoe Chiang Road and Lim Teck Kim Road in the Downtown Core will be relaunched for collective sale via tender on May 17, according to a press release by marketing agent PropNex Realty.
The site, which comprises two rows of commercial buildings and a piece of remnant land between them, has a reserve price of $216 million. The price is unchanged from the previous tender launched on Jan 19 for the site. The tender had closed on March 22 with no bids.
The existing building on Hoe Chiang Road (Picture: PropNex)
The reserve price translates to an estimated land rate of $2,610 psf per plot ratio (ppr) for an office development, including a land betterment charge (LBC) of $55 million. The buyer also has the option to redevelop the site as a hotel development, which would put the land rate at $2,671 psf ppr, inclusive of the estimated LBC of $61.3 million, says PropNex.
The buildings are at 1 to 9 Hoe Chiang Road (odd numbers only) and 2 to 10 Lim Teck Kim Road (even numbers only). Together with the remnant land, the entire site has a total estimated land area of around 18,540 sq ft. The plot is zoned for commercial use and has a gross plot ratio of 5.6.
An EdgeProp LandLens screenshot showing the location of 1 Hoe Chiang Road. The site is located near One Bernam, Keppel South Central, Newport Tower, and the former Realty Centre (Source: EdgeProp LandLens)
Tracy Goh, PropNex's head of investment and collective sales, highlights the commercial zoning of the site means that it is not subjected to additional buyer’s stamp duty (ABSD). In addition, the prime office market remains resilient, with rents rising 5.1% q-o-q in 1Q2023. Goh expects the healthy office market and the ABSD hikes announced as part of the recent round of cooling measures to result in renewed investment interest in the commercial property segment. (Find Singapore commercial properties with our commercial directory)
As such, she anticipates the site at Hoe Chiang Road and Lim Teck Kim Road to draw interest from buyers, especially given its location and tenure. “Currently, there are no other 999-year tenure commercial sites for sale in the CBD,” she adds. The site is within walking distance of Tanjong Pagar MRT Station (East-West Line) as well as two upcoming stations - Cantonment and Prince Edward Road stations on the Circle Line - which are slated to be ready in 2026.
Goh adds that the site is not affected by restrictions limiting the strata subdivision of commercial property in the CBD, which will offer more flexibility to the buyer to redevelop the plot into a strata-titled office building. “The restrictions on strata subdivision is expected to crimp the supply of strata-titled office units in the city centre, and it will help to prop up the demand for and prices of such office spaces.”
The tender for the site will close on May 31 at 2pm.
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