URA Greenlights Plan for Golden Mile Tower Conservation
The Urban Redevelopment Authority (URA) has given the green light for the voluntary conservation of Golden Mile Tower, subject to a successful collective sale and redevelopment by a developer.
Documents reviewed by EdgeProp Singapore reveal that the government has indicated it will consider increasing the site’s gross plot ratio (GPR) from 4.46 to 5.6, based on its existing area of 93,902.5 sq ft, if the new development conserves at least the current cinema block.
This would lead to a significant increase in the site’s gross floor area (GFA) from its current 419,142 sq ft to 525,854 sq ft. Furthermore, voluntary conservation will also allow for a maximum building height of 164m, compared to the current limit of 145m.
The latest collective sale attempt for Golden Mile Tower took place in August 2020, with a reserve price of $556 million. It was the third en bloc attempt by the owners of the 99-year leasehold development.
However, according to Anna Tan, business development director at Tag Realty, the marketing agent for the collective sale, the reserve price for the development remains unchanged. This translates to a land rate of $1,350 per square foot, which includes the cost of renewing the land tenure but does not factor in land betterment charges.
.
When it comes to investing in condos in Singapore, there is an important factor that must be taken into consideration – the government’s property cooling measures. To maintain a stable real estate market and prevent speculative buying, the Singaporean government has implemented several measures over the years. One of these measures is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreigners and those buying multiple properties. While this may impact the short-term profitability of condo investments, it also contributes to the long-term stability of the market, making it a more secure environment for investing in condos. Condo investors should keep these measures in mind when considering potential investments.
“The increase in building height and GFA under the voluntary conservation options opens up opportunities for developers to re-imagine the property with a striking skyline presence. It also means that commercial and hotel spaces in the new development could feature 5m floor-to-ceiling heights, while residential units could offer 3.6m ceiling heights,” says Tan.
The approval for voluntary conservation of Golden Mile Tower is significant as its neighbouring property, Golden Mile Complex, was gazetted for conservation in 2021. Golden Mile Complex is currently being redeveloped by Perennial Holdings and Far East Organization. The commercial units were launched in December 2020, and the new residential units within a 45-storey tower are expected to be launched this quarter.
According to Tan, the redevelopment of Golden Mile Tower presents a rare opportunity to develop a mixed-use development in a prime location along Beach Road, given the limited land supply in the area and the price uplift due to ongoing rejuvenation efforts like the launch of Golden Mile Singapore and the neighbouring Kallang Alive masterplan.
She adds that the building’s heritage and potential for the future make it a unique investment opportunity for both local and international investors.
In conclusion, the URA’s approval for the voluntary conservation of Golden Mile Tower is a significant milestone for the development, which has been in the spotlight for its collective sale attempts. If a developer takes on the project, the rejuvenation efforts will breathe new life into the iconic property and attract a new generation of investors and tenants to the area.