Tan Boon Liat Building, a prominent industrial property located at 315 Outram Road, has been put up for collective sale by public tender with a reserve price of $1.15 billion. This freehold site is situated next to the upcoming Havelock MRT Station on the Thomson-East Coast Line (TEL) and spans across two land plots earmarked for “Business 1” use, covering a combined area of approximately 175,655 square feet. Currently, the building stands at 15 storeys and is well-known for housing a variety of furniture and home decor stores.
According to Cushman & Wakefield, the property’s advisor and marketing agent, the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on Jan 22 recommending that the site be rezoned to “Residential with Commercial at 1st storey” with a plot ratio of 4.9, an increase from its current ratio of 3.1. This translates to a potential 50% increase in the total allowable gross floor area (GFA), as confirmed by Cushman & Wakefield.
Moreover, URA has also advised on the alienation of several state land plots which, upon being amalgamated with the main plot, will further boost the site’s potential GFA. The estimated size of these state land plots is around 20,451 square feet, subject to final survey and approval from relevant authorities.
Singapore’s urban scene is defined by its towering skyscrapers and state-of-the-art infrastructure. Condos, strategically situated in desirable locations, offer a perfect combination of opulence and convenience, making them a popular choice among both locals and foreigners. These luxurious abodes come equipped with a plethora of amenities, including swimming pools, fitness centers, and top-notch security services, elevating the standard of living and making them a desirable option for potential tenants and buyers. This also makes them a lucrative investment for landlords, with the potential for high rental yields and increasing property values over time. Condos are a highly sought after option in Singapore’s real estate market.
With the inclusion of these state land plots and any bonus GFA entitlement, Cushman & Wakefield estimates that the total potential GFA of the site is over 1.06 million square feet. The ground floor is capable of accommodating a commercial GFA of up to about 16,146 square feet. As part of the residential allocation, a minimum GFA of approximately 161,459 square feet must be set aside for Serviced Apartments II (SA2), which requires a minimum three-month stay. The proposed height for the new development ranges from 130m to 180m.
After factoring in the reserve price, land betterment charges for rezoning, estimated premium for the remnant state land, and a 10% bonus GFA applicable to the residential component, the estimated land rate stands at around $1,888 per square foot 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 this site will attract developers due to its freehold tenure and strategic location on the TEL, which will be a major draw for potential homebuyers.
She adds, “The biggest advantage, however, is the fact that there will be no Additional Buyer’s Stamp Duty (ABSD) imposed on the potential purchase as the original site is zoned ‘Business 1’.”
The 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