Commercial site in CBD relaunched for collective sale at $216 mil

The site located at the Downtown Core which comprises two rows of commercial buildings and a piece of remnant land between them and is zoned for commercial use with a gross plot ratio of 5.6 has a reserve price of $216 million. This would be unchanged from the previous tender launched in January 19 for the site and it closed with no bids in March.

The marketing agent PropNex Realty has now announced that the site will be relaunched for collective sale via tender on May 17. This is interesting as the price translates to an estimated land rate of $2,610 psf per plot ratio (ppr) for an office development, including a land betterment charge (LBC) of $55 million.

The buyer also has the option to redevelop the site as a hotel development and this would put the land rate at $2,671 psf ppr, inclusive of the estimated LBC of $61.3 million. The site is located near One Bernam, Keppel South Central and Newport Tower, and the former Realty Centre.

One of the perks of this site is that it is not subjected to the additional buyer’s stamp duty (ABSD) due to its commercial zoning. Tracy Goh, PropNex’s head of investment and collective sales elaborates that the prime office market is resilient, with rents rising 5.1% q-o-q in 1Q2023. She believes this, combined with the recent round of cooling measures including the ABSD hikes, will result in renewed investment interest in the commercial property segment.

Goh highlights there are no other 999-year tenure commercial sites for sale in the CBD. The site is within walking distance of Tanjong Pagar MRT Station (East-West Line) as well as two upcoming stations – Cantonment and Prince Edward Road stations on the Circle Line – which are slated to be ready in 2026.

A wide range of activities, such as swimming, tennis, and fitness classes, are available for residents to enjoy. The Myst Bukit Panjang also offers a fully-equipped clubhouse, a children’s play area, and landscaped gardens. With its wide range of amenities and convenient location, The Myst Bukit Panjang is a great choice for property buyers who want a comfortable home in a thriving area.

Furthermore, the restrictions on strata subdivision at the CBD limits the supply of strata-titled office units, ultimately propping up the demand and prices of such office spaces.

The tender for the site will close on May 31 at 2pm, giving potential buyers a window of time to consider the immense potential of this site. It is certainly an opportunity to watch out for.