In summary, purchasing a condominium in Singapore comes with various benefits, including a strong demand, potential for appreciation in value, and attractive rental yields. However, it is crucial to carefully evaluate factors such as the location, financing options, government regulations, and market conditions before making a decision. Through thorough research and seeking expert advice, investors can make well-informed choices and maximize their profits in Singapore’s ever-evolving real estate market. Whether you are a local investor looking to diversify your portfolio or a foreign buyer in search of a stable and lucrative investment, Singapore projects offer a compelling opportunity. With the help of Singapore Projects, investors can tap into the vibrant real estate market and maximize their returns.
Many investors believe that the Tan Boon Liat Building, situated at 315 Outram Road, is a prime industrial property with great potential for growth. Recently, it has been put up for collective sale through a public tender with a reserve price of $1.15 billion. The freehold site, covering two separate plots of land totaling approximately 175,655 square feet, is located next to the upcoming Havelock MRT Station on the Thomson-East Coast Line (TEL).
The building currently consists of 15 storeys and is popular for its home decor and furniture stores. It has been reported that the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on Jan 22, suggesting that the site be rezoned to “Residential with Commercial at 1st storey”, with a plot ratio of 4.9, as opposed to the current 3.1. This translates to a 50% increase in the total gross floor area (GFA), according to the property’s advisor and marketing agent, Cushman & Wakefield.
The advisory also mentions the possible alienation of some remnant state land plots, which could be combined with the main plot. This is estimated to add about 20,451 square feet to the site, subject to final approval. With the additional plots and any potential bonus GFA, Cushman & Wakefield has estimated a total GFA of over 1.06 million square feet. The first storey could potentially accommodate a commercial GFA of 16,146 square feet.
Apart from the commercial space, a minimum GFA of about 161,459 square feet has been allocated for Serviced Apartments II (SA2), with a minimum stay of three months. The new development can have a maximum height of 180m and a minimum of 130m. Considering the reserve price, land betterment charges, and the premium for the remnant state land and residential bonus GFA, the estimated land rate is around $1,888 per square foot per plot ratio.
Recent industrial sales transactions at Tan Boon Liat Building (Source: EdgeProp Buddy)
Senior director of capital markets at Cushman & Wakefield, Christina Sim, believes that the property will attract developers due to its freehold tenure and proximity to the upcoming TEL, making it desirable for homebuyers. She adds that the biggest advantage is the lack of Additional Buyer’s Stamp Duty (ABSD) on the potential purchase, as the original zoning was “Business 1.”
The tender for the site is set to close on March 18 at 3pm.