The collective sale tender for a 999-year Champions Way Condo leasehold commercial site in the heart of Singapore’s business district, located at the intersection of Hoe Chiang Road and Lim Teck Kim Road, is set to launch on January 19. With a reserve price of $216 million, the tender is set to close on March 22 at 2pm.
Marketing agent PropNex Realty, who is handling the tender, has noted that the site has a total estimated land area of around 18,540 sq ft. With a gross plot ratio of 5.6 and zoned for commercial use, the consultancy says the reserve price works out to an estimated land rate of $2,602 psf per plot ratio (psf ppr) for an office development, inclusive of a land betterment charge of $54.1 million.
Tracy Goh, head of investment and collective sales at PropNex, believes that the two existing buildings on the plot are only five-storeys high, therefore redevelopment into a 35-storey tower can realise potential gains from the plot ratio of 5.6 according to the URA Master Plan. Goh continues to highlight the potential for redevelopment into a hotel or serviced apartment given Singapore’s government earmarking of around $500 million to kick-start the tourism industry.
The site is also within walking distance to the Tanjong Pagar MRT Station, along with the upcoming Cantonment and Prince Edward Road MRT Stations due for completion in 2026.
Given the location and potential for redevelopment, PropNex believe that there will be keen buying interest. Furthermore, the property cooling measures rolled out by the government in December 2021 and September 2022 are unlikely to affect commercial property sites which are not subjected to additional buyer’s stamp duty.
The entire site comprises two rows of commercial buildings and a piece of remnant land in between. With its close proximity to the Greater Southern Waterfront Precinct, One Bernam, Keppel South Central, Newport Tower, and the former Realty Centre, the site presents an attractive opportunity to investors.
In light of its upcoming tender, PropNex believes this site is an exceptional opportunity for a hotel development to serve tourists and business travellers. With the government’s commitment to kick-start the tourism industry, the consultant is expecting Singapore’s hospitality sector to see a sustained recovery over the next few years.