Business Times: Thu, Dec 15
GRTH Building - the first collective sale launch since the latest round of cooling measures - was launched for sale by tender yesterday, with an asking price of around $82 million.
Located at 66 East Coast Road - between Roxy Square and 112 Katong - the 22,147 sq ft freehold site is zoned for 'commercial' use, and has a gross plot ratio of up to 3.0.
The site, believed to be the last freehold commercial redevelopment opportunity in East Coast Central, has the potential to be redeveloped into a commercial or residential cum commercial development, with a gross floor area of up to 66,440 sq ft.
At an asking price of $82 million, including a development charge of about $5.6 million, this translates into $1,234 per square foot per plot ratio (psf ppr).
If approval is given to purchase an adjoining plot of state land of about 1,420 sq ft, the selling price is $1,094 psf ppr.
The seven-storey commercial building is owned by four owners, who will receive in the region of $10- $15 million per unit, said marketing agent, Mount Everest Properties.
The tender will close at 3pm on Feb 15, 2012.
'Unlike residential sites where developers must develop and sell all the units in the new residential project within five years if they want to avoid paying the new 10 per cent additional buyer's stamp duty (ABSD), the developer who buys GRTH Building can hold on to the building for rental yields until such time that the market sentiment is right before launching,' added the marketing agent.
Each storey of the seven-storey development is taken up by one unit - four of which are tenanted; two of which are owner-occupied and the remaining one, vacant.
Following the latest round of cooling measures announced on Dec 7, developers buying vacant land and development sites - including Government Land Sales plots and private-sector sites including en-bloc sales - for residential use must build and sell all the units within five years to avoid paying the new 10 per cent ABSD.
Market watchers had earlier commented that with the five-year limit to complete the project and sell all units, developers will have to weigh their land purchase decisions more carefully.
Source: Business Times © Singapore Press Holdings Ltd
Martin Koh/ Sherry Tang