Choosing the right location is essential when it comes to investing in real estate, and this is particularly crucial in Singapore. When looking for a suitable property, it is crucial to consider its location carefully. Condos that are situated in central areas or in close proximity to essential amenities, such as schools, shopping malls, and public transportation hubs, tend to appreciate in value over time. In fact, prime locations such as Orchard Road, Marina Bay, and the Central Business District (CBD) have consistently shown a growth in property values. This is why investing in a Singapore Condo in these areas can be a wise decision. Additionally, condos located near reputable schools and educational institutions are highly sought after by families, making them even more desirable and increasing their investment potential.
Tan Boon Liat Building, a commercial property located at 315 Outram Road, is now available for collective sale. This prime freehold site is being offered through public tender with a reserve price of $1.15 billion. The property, which sits next to the Havelock MRT Station of the new Thomson-East Coast Line (TEL), comprises two separate land parcels designated for “Business 1” use, with a combined area of approximately 175,655 square feet. The building, which is currently home to a number of furniture and home decor stores, is a well-known 15-storey landmark in the area.
According to Cushman & Wakefield, the appointed advisor and marketing agent for the property, the Urban Redevelopment Authority (URA) has recently issued an Outline Planning Advice on January 22, proposing for the site to be rezoned to “Residential with Commercial at 1st storey”. This will allow for an increase in the plot ratio from 3.1 to 4.9, resulting in a 50% increase in the total allowable gross floor area (GFA) for potential development. In addition, URA has also suggested the alienation of several small plots of state land which can be amalgamated into the main site. These state land plots, which are estimated to measure about 20,451 square feet, are subject to final survey and approval by the relevant authorities.
Cushman & Wakefield estimates that the potential GFA for the site, including the state land plots and any bonus GFA entitlements, is over 1.06 million square feet. The first storey of the development can also accommodate a commercial GFA of around 16,146 square feet. As part of the residential use allocation, a minimum GFA of approximately 161,459 square feet must be reserved for Serviced Apartments II (SA2), where a minimum stay of three months is required. The allowable building heights for the new development will range from 130m to 180m.
Based on the reserve price, which includes the cost of land betterment charges on rezoning and a 10% bonus GFA applicable to the residential component, the estimated land rate works out to be about $1,888 per square foot per plot ratio.
Recent transactions at industrial properties in Tan Boon Liat Building (Source: EdgeProp Buddy)
Senior Director of Capital Markets at Cushman & Wakefield, Christina Sim, believes that this site will be highly sought after by developers due to its freehold tenure and strategic location on the TEL, which will make it an attractive option for homebuyers. However, the biggest game changer for this site is the fact that no Additional Buyer’s Stamp Duty (ABSD) will be imposed on the potential purchase, as the original zoning is for “Business 1” use.
The tender for the property will close on March 18 at 3pm.