Tanjong Pagar site up for en bloc sale again at unchanged S$216 million reserve price

May 16, 2023

A COMMERCIAL site on Hoe Chiang Road and Lim Teck Kim Road will again be put up for collective sale via public tender on Wednesday (May 17), at an unchanged reserve price of S$216 million, said sole marketing agent PropNex : OYY 0%on Tuesday.

The 999-year leasehold site was first offered for collective sale on Jan 19. The tender closed with no bids on Mar 22.

The site consists of two five-storey buildings located at 1, 3, 5, 7 and 9 Hoe Chiang Road and 2, 4, 6, 8 and 10 Lim Teck Kim Road, just off Tanjong Pagar Road within the Central Business District (CBD). The buildings’ backs face each other, with a piece of remnant land between them.

Both buildings were originally erected in 1959. The land area of the Hoe Chiang Road site is 8,449 square feet (sq ft). The Lim Teck Kim Road site spans 8,450 sq ft.

The total land area of the two buildings and the remnant land is an estimated 18,540 sq ft. Under the Urban Redevelopment Authority’s Master Plan 2019, the site is zoned for commercial use and has a plot ratio of 5.6.

The site is a short distance from the Tanjong Pagar MRT station on the East West Line, as well as the upcoming Cantonment and Prince Edward Road MRT stations, which are due to be completed in 2026, on the Circle Line.

PropNex also noted that the site is “surrounded by numerous amenities, including the 100AM mall, Icon Village, Guoco Tower, and International Plaza”.

The agency added that if the site is used for an office development, the estimated land rate is S$2,610 per square foot per plot ratio (psf ppr), inclusive of a land betterment charge (LBC) of S$55 million.

There is also the option to redevelop the site into a hotel, which would put the land rate at S$2,671 psf ppr, inclusive of an estimated LBC of S$61.3 million.

The April hike in Additional Buyers’ Stamp Duty (ABSD) for foreigners could add impetus to the site’s sale this time around, since ABSD is not payable on commercial sites, said Tracy Goh, head of investment and collective sales at PropNex.

She noted that there are currently no other 999-year tenure commercial sites for sale in the CBD.

“The Hoe Chiang Road/Lim Teck Kim Road site is not affected by restrictions limiting the strata subdivision of commercial property in the CBD, which will offer more flexibility to the purchaser to redevelop this plot into an iconic strata-titled office building,” Goh added.

The tender closes at 2 pm on May 31.

https://www.businesstimes.com.sg/pro...-reserve-price