Developers has several options to redevelop the land: as a hotel, a mixed-use development, or a wholly commercial structure.
If the possible state property is approved, the collective sale site will expand to 63,439.8 square feet, with a gross floor space of 317,198.9 square feet.
The reserve price of S$360 million reflects a land rate of S$1,475 psf ppr, including projected expenses to acquire state land, difference premium, and lease top-up premium, for a new mixed-use development that is 40% commercial and 60% residential.
After accounting for the 7% bonus gross floor area, the average price will be S$1,450 psf ppr.
The land price for a new hotel construction will be around S$1,548 psf ppr, which includes the expected expenses of purchasing state land, difference premium, and lease top-up premium.
Sultan Plaza is a 99-year leasehold site, beginning in May 1978, with a 56-year lease period remaining.
According to Teakhwa Real Estate managing director Sieow Teak Hwa, successful bidder needs to know that there is no (ABSD) additional buyer’s stamp duty required when purchasing for the commercial plot.
“Sultan Plaza has a unique location with several development possibilities. Developers are attracted to it because of its unusual downtown position, which is rarely available, as well as the owners’ fair asking price “The marketing representative stated.
“Most developers would still likely purchase land since their present stockpiles are running short, “the agent added, “but will probably chose mid-sized and more reasonably priced sites, notably those within a price range of S$200 million to S$500 million.”
The marketing agency pointed out that well-located residential or mixed-use properties with unique characteristics that appeal more to Singaporean purchasers – who would be the least affected by the new regulations – will have a high chance of finding a buyer.