Tan Boon Liat Building, a popular industrial property located on Outram Road, is currently up for sale by public tender. The reserve price for the building is set at $1.15 billion and it is a freehold site. The property is situated next to the Havelock MRT Station on the Thomson-East Coast Line (TEL) and covers two separate land plots that are meant for “Business 1” use. Together, the land plots have a total area of 175,655 square feet. The main highlight of the 15-storey building is its wide range of furniture and home decor shops that have made it a popular destination among shoppers.Map showing Tan Boon Liat Building (Source: EdgeProp LandLens)According to Cushman & Wakefield, which is acting as the property’s advisor and marketing agent, the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on Jan 22 suggesting a rezoning of the site to “Residential with Commercial at 1st storey” with a plot ratio of 4.9, as opposed to its current plot ratio of 3.1. This would result in a 50% increase in the total allowable gross floor area (GFA), according to Cushman & Wakefield.Read also: Roxy Square relaunched for collective sale; owners eyeing $1.115 bil price tag AdvertisementAdvertisementIn addition, the URA has recommended the amalgamation of a few remnant state land plots with the main plot. These state land plots are estimated to cover an area of 20,451 square feet, subject to final survey and approval by the relevant authorities.Cushman & Wakefield has estimated that the potential GFA of the site, including the state land plots and bonus GFA entitlement, would be over 1.06 million square feet. The commercial GFA on the first storey can be expanded to approximately 16,146 square feet.Meanwhile, as part of the residential allocation, a minimum GFA of around 161,459 square feet must be kept aside for Serviced Apartments II (SA2) which require a minimum three-month stay. The allowable heights for the new development range from 130m to 180m.According to the reserve price, which includes 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 land rate is estimated to be around $1,888 psf per plot ratio.Recent industrial sales transactions at Tan Boon Liat Building (Source: EdgeProp Buddy)Christina Sim, senior director of capital markets at Cushman & Wakefield, believes that the site will be attractive to developers due to its freehold tenure and its proximity to the TEL, which will be a major appeal to potential homebuyers.She further adds that the major advantage of this site is the fact that there will be no Additional Buyer’s Stamp Duty (ABSD) applicable, as the site was originally zoned as “Business 1”.Read also: River Valley Apartments launched for collective sale at $56 milAdvertisementAdvertisementThe tender for the site will close on March 18 at 3pm. Ask BuddyCompare price trend of Condo new sale vs EC new saleMost unprofitable landed transactions in past 1 yearCondo projects with most unprofitable transactionsPast Condo sale transactionsUpcoming new launch projectsCompare price trend of Condo new sale vs EC new saleMost unprofitable landed transactions in past 1 yearCondo projects with most unprofitable transactionsPast Condo sale transactionsUpcoming new launch projects
Purchasing a condominium in Singapore offers an opportunity for potential capital growth, making it a wise investment decision. Due to its advantageous position as a prominent business hub and robust economic foundation, Singapore consistently experiences a high demand for real estate. This has resulted in a steady rise in property prices, especially for condos situated in strategic locations. For investors who make well-timed purchases and hold onto their properties for an extended period, significant capital gains can be expected. To stay updated on new condo launches in Singapore, visit Elemeno-Pee.