What Exactly Happen? Sultan Plaza Tender Date Clash with Middle Road GLS
The Middle Road Site is Near to the En Bloc Site and Developers always Prefer GLS than En Bloc Sale
Looks like Sultan Plaza Owners Have to Wait for some time to taste Collective Sale Success
Owners of Sultan Plaza has chosen the right time to launch their En Bloc Sale, this is when commercial sector shines the brightest in 2019.
The 99-year leasehold estate has been launched at S$380 million reserve price. It houses several offices at the present and has been one of the most popular office rental sites in District 7 over the last many years.
Going by the reserve price the land-rate for the 244-unit translates to S$1,860 psf ppr. The development located in Jalan Sultan which is just off the Beach Road recently received the required 80% mandate from its owners who are optimistic about the prospects of this property given its advantages location.
The commercial tender for the sale was launched on January 16. The reserve price of S$380 million is inclusive of the development charges payable and also the differential premium.
Built in the 1970s, Sultan Plaza covers a total land area of 52,471 sq ft and as per the last Master Plan it has been zoned ‘commercial’.
The site has good redevelopment potential and after receiving due permission from the authorities it can be redeveloped up to 283,803 sf ft exercising its full gross plot ratio of 5.30.
The Commercial Site has lots to offer according to ERA Realty Network which has been hired as the marketing agent for the sale.
In its press release it highlighted the locational advantage of the enbloc site. It is well connected to the Central Business District and other part of Singapore which should serve as a major crowd puller when the property is redeveloped and launched for sale.
ERA Realty Network’s Group Division Director for Investment Sales, Jeremy Rikas Chiu was very excited about the prospects of this en bloc and said that they had already seen very strong mood about it in the market.
Several foreign developers and home-grown ones had already shown their interest in this property.
He added that any developer picking up this site would be buying a piece of Singapore’s illustrious history that can easily be redeveloped in a creative way and would offer enough opportunities to explore different architectural concepts.
The developer would make an important contribution to Singapore’s future architectural imprint.
The tender for Sultan Plaza shall close on March 28 at 12:00 PM
The announcement of cooling measures in July 2018 had hit the residential en bloc market with a sledge hammer.
It introduced stringent penalty clauses for developers not being able to sell all units within five years of picking up a site and also increased the ABSD (Additional Buyer’s Stamp Duty).
But now the en bloc sale market is again gathering steam with developers having had enough time to contemplate their future course of action as far as picking and choosing the right en blocs are concerned.
Waterloo Apartments located in Bras Basah and Bugis sold for S$131 million in November last year and picked up by Fragrance Victory Pte Ltd which brought much cheers to the en bloc sale market after it had witnessed months of dampened spirits with many en bloc tenders failing to attract any bids.
Golden Wall Centre was another collective sale that managed to find a buyer at $276.2 million also in November and it was bought by the firm that that runs Hotel 81 chain.
Then in late December, Century Warehouse an industrial site sold en bloc to a private investment company and became latest commercial en bloc sold.
Though the market isn’t as upbeat as it was before the announcement of the cooling measures, we are seeing increased enthusiasm among developers wanting to increase their land bank.
If the property has good potential like Sultan Plaza, so does the developers are willing to put their money in.
Beach Road has been booming with activity over the last two decades and this is well reflected in the realty market here.
There are several new developments that have come up in the vicinity in the recent years.
These include Duo Residences which has become an architectural highlight in the city’s towering landscape.
With hexagonal cladding that has a net-like appearance is distinctive both in style and form.
South Beach is another major project that has been added to the Beach Road skyline. The residential cum commercial complex came up over the site of four conservation buildings that was occupied by the Army in the past.
Completed in 2016 it has turned into a mini commercial hub having a hotel, shops and several offices.
City Gate Singapore which is expected to be completed this year is the latest addition to this fast-changing landscape.
A dominating 25-storey property it is a prime example of URA’s 2014 Master Plan which has been encouraging the construction of mixed-use sites in Beach Road.
Once fully completed City Gate would house 311 residential units, 188 commercial units which have been beautifully built on a three-storey podium among which 29 would be restaurants.
There would also be a large food court and supermarket catering to the needs of residents and people from nearby developments.