Investing in condos in Singapore requires careful consideration of the government’s property cooling measures. The Singaporean government has implemented various measures over the years to prevent speculative buying and maintain a stable real estate market. One of these measures is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those who purchase multiple properties. While these measures may have an impact on the short-term profitability of condo investments, they also contribute to the long-term stability of the market, creating a more secure investment environment.
The Urban Redevelopment Authority (URA) has given the green light for the voluntary conservation of Golden Mile Tower, as stated in the outline application that was recently approved. This decision will only come into fruition if the sale of the 99-year leasehold development is successful through a collective sale, and if the developer plans to redevelop the property.
According to sources at EdgeProp Singapore, the government has specified that if a developer decides to conserve at least the current cinema block, they will consider increasing the site’s allowable gross plot ratio (GPR) from 4.46 to 5.6, based on the existing site area of 93,902.5 sq ft. This increase in GPR will result in a corresponding rise in the allowable gross floor area (GFA) to 525,854 sq ft, a significant increase from its current GFA of 419,142 sq ft. Additionally, voluntary conservation will also lead to a higher maximum building height of 164m, in contrast to the current height limit of 145m for the site.
The recent collective sale attempt by the owners of Golden Mile Tower took place just last August, with a reserve price of $556 million. This was the third collective sale attempt in the hopes of selling and redeveloping the 99-year leasehold development. According to Anna Tan, business development director at Tag Realty, the marketing agent for the collective sale of Golden Mile Tower, the reserve price remains unchanged. This works out to a land rate of $1,350, which includes the cost of renewing the land tenure but does not account for land betterment charges.
“The increase in the building’s height control under the voluntary conservation options presents opportunities for developers to reimagine the property with a prominent skyline presence. This also means that commercial and hotel spaces in the new development could feature 5m floor-to-ceiling heights, while residential units could offer 3.6m ceiling heights,” says Tan.
The approval for voluntary conservation of Golden Mile Tower is a significant development, especially considering that its neighboring Golden Mile Complex, now known as Golden Mile Singapore, was recently gazetted for conservation in 2021. Golden Mile Singapore is a joint venture between Perennial Holdings and Far East Organization. The commercial units were launched last December, and the new residential units, housed within a 45-storey tower, are expected to be launched this quarter.
“This presents a rare opportunity to redevelop Golden Mile Tower, given the limited land supply along Beach Road and the potential increase in value due to ongoing rejuvenation efforts, such as the launch of Golden Mile Singapore and the neighboring Kallang Alive masterplan,” adds Tan.
She also mentions that the redevelopment of Golden Mile Tower provides a chance to create a new mixed-use development in a premium location along Beach Road. The building’s heritage and future potential make it a unique investment opportunity for local and international investors.