Tan Boon Liat Building, a well-known industrial building located at 315 Outram Road, has been put up for collective sale through a public tender process. The reserve price for this freehold property is set at $1.15 billion. It occupies two separate land plots that have been zoned for “Business 1” use, with a total area of approximately 175,655 sq ft. The building stands at 15 storeys high and is popular for its various furniture and home decor stores.
The property’s advisor and marketing agent, Cushman & Wakefield, reported that the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on Jan 22, proposing to rezone the site to “Residential with Commercial at 1st storey” and increase the plot ratio from 3.1 to 4.9. This would result in a 50% increase in the total allowed gross floor area (GFA).
As a result of the proposed rezoning, URA has also recommended incorporating a few remnant state land plots into the main plot. These plots span approximately 20,451 sq ft, subject to final survey and approval from the relevant authorities.
Cushman & Wakefield estimates that the potential GFA of the site, including the state land plots and any bonus GFA entitlement, is over 1.06 million sq ft. The first storey can accommodate a commercial GFA of up to 16,146 sq ft.
In addition to the residential component, a minimum GFA of 161,459 sq ft should be reserved for Serviced Apartments II (SA2), where a minimum three-month stay is required. The allowed heights for the new development range from 130m to 180m.
Based on the reserve price, which includes land betterment charges on rezoning, the estimated premium for the remnant state land and the 10% bonus GFA for the residential portion, the estimated land rate is approximately $1,888 psf per plot ratio.
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Recent industrial sales transactions at Tan Boon Liat Building have ranged between $850 psf to $1,100 psf. 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 prime location. The building’s proximity to the upcoming Havelock MRT station on the Thomson-East Coast Line (TEL) is also a significant advantage for potential homebuyers.
Sim adds that one of the most significant draws for developers is that no Additional Buyer’s Stamp Duty (ABSD) will be imposed on this site as it currently has a “Business 1” zoning.
The tender for the site will close on March 18 at 3pm.