>

Commercial site at Hoe Chiang Road and Lim Teck Kim Road up for collective sale at $216 mil

/ EdgeProp Singapore |

January 18, 2023 1:18 PM SGT

The property 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 will be launched for collective sale on Jan 19, 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 buildings are located 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 rectangular-shaped plot is zoned for commercial use and has a gross plot ratio of 5.6. (Find Singapore commercial properties with our commercial directory)

Hoe Chiang Road property - EDGEPROP SINGAPORE

The Hoe Chiang Road property (Picture: PropNex)

The reserve price works out to an estimated land rate of $2,602 psf per plot ratio (psf ppr) for an office development, inclusive of a land betterment charge of $54.1 million, according to PropNex. The consultant adds that the buyer has the option to redevelop the site into a hotel development, in which case the reserve price would translate to a land rate of $2,662 psf ppr inclusive of an estimated land betterment charge of $60.4 million.

Tracy Goh, head of investment and collective sales at PropNex, observes that the two existing buildings on the plot are only five-storeys high. “The successful buyer can redevelop this site to build a 35-storey tower to realise potential gains from the plot ratio of 5.6 under the URA Master Plan,” she explains.

She adds that the site presents a good opportunity to build a new hotel or serviced apartment to serve tourists and business travellers. “As international travel resumes post-pandemic and the government having earmarked about $500 million to kick-start the tourism industry, we expect Singapore’s hospitality sector to see a sustained recovery over the next few years."

The site is situated close to the Greater Southern Waterfront precinct and is within walking distance to the Tanjong Pagar MRT Station, along with the upcoming Cantonment and Prince Edward Road MRT Stations which are due for completion in 2026. Goh also anticipates the site to further benefit from the ongoing rejuvenation happening in its vicinity. Redevelopment projects in the area include Keppel South Central, Newport Tower and the former Realty Centre, while upcoming mixed-use development One Bernam is also nearby.

location of 1 Hoe Chiang Road - EDGEPROP SINGAPORE

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)

Given the site’s location and redevelopment potential, Goh expects keen buying interest for the plot. She adds that in light of the property cooling measures rolled out by the government in December 2021 and September 2022, more real estate investors may turn their attention to commercial property sites, which are not subjected to additional buyer’s stamp duty.

The collective sale tender for the site will close on Mar 22 at 2pm.