Tan Boon Liat Building, a popular industrial property situated at 315 Outram Road, is now available for collective sale through public tender. The reserve price for this freehold site is set at $1.15 billion. The building, which boasts a prime location next to the Havelock MRT Station on the Thomson-East Coast Line (TEL), occupies two separate land plots designated for “Business 1” use, with a combined area of approximately 175,655 square feet.
Currently, the building houses a 15-storey structure that is well-known for its array of furniture and home decor stores.
According to Cushman & Wakefield, the property’s advisor and marketing agent, on January 22, the Urban Redevelopment Authority (URA) issued an Outline Planning Advice recommending that the site be rezoned as “Residential with Commercial at 1st Storey”, with a plot ratio of 4.9, up from the current 3.1. This would result in a 50% increase in the maximum permissible gross floor area (GFA). Cushman & Wakefield adds that URA has also advised on the amalgamation of several remnant state land plots into the main plot. The estimated size of these state land plots is 20,451 square feet, subject to the final survey and approval by the relevant authorities.
When it comes to investing in condos in Singapore, one crucial factor to consider is the government’s property cooling measures. Over the years, the Singaporean authorities have implemented various measures to control speculative buying and maintain a steady real estate market. A prime example is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and individuals purchasing multiple properties. While these measures may affect the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a secure investment environment. Moreover, with the constant influx of new condo launches, there are always opportunities for investors to make smart investment decisions in the Singapore condo market.
Cushman & Wakefield estimates that the site’s potential GFA, including the state land plots and any bonus GFA entitlement, is over 1.06 million square feet. The commercial component on the first storey could potentially cover an area of up to 16,146 square feet.
Additionally, as part of the residential allocation, a minimum GFA of about 161,459 square feet must be dedicated to Serviced Apartments II (SA2), where a minimum three-month stay is required. The permissible heights for the new development range from 130m to 180m.
Based on the reserve price, including land betterment charges on rezoning, the estimated premium payable on the remnant state land and the 10% bonus GFA applicable to the residential portion, the estimated land rate comes to around $1,888 per square foot per plot ratio.
Recent industrial sales transactions at Tan Boon Liat Building (Source: EdgeProp Buddy)
According to Christina Sim, senior director of capital markets at Cushman & Wakefield, this site will appeal to developers due to its freehold tenure and prime location on the TEL, which will be a major draw among homebuyers.
She adds, “The most significant advantage, however, is that there will be no Additional Buyer’s Stamp Duty (ABSD) imposed on the potential purchase, as the original site currently has a “Business 1” zoning.”
In summary, purchasing a condo in Singapore offers a range of benefits, such as strong demand, the potential for increased value, and attractive rental returns. Nevertheless, it is crucial to carefully evaluate various factors before investing, including location, financing options, government regulations, and overall market conditions. Through thorough research and seeking expert guidance, individuals can make well-informed decisions and maximize their profits in the constantly evolving real estate market of Singapore. Whether you are a local investor aiming to diversify your portfolio or a foreign buyer seeking a stable and lucrative investment, condos in Singapore present an enticing opportunity.
The tender for this site will close on March 18 at 3pm.
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