Katong Plaza En Bloc 2024 Optimal Site for a New Hotel

Katong Plaza En Bloc 2024 – Optimal Site for a New Hotel

Katong Plaza, a 41-year-old property located in Singapore’s bustling east district, has been put on the market for a collective sale with an asking price of S$188 million.

This sale, managed by Huttons Asia, represents a significant opportunity for developers eyeing prime freehold sites in a sought-after area.

Situated at 1 Brooke Road, Katong Plaza occupies a freehold site of 34,044 square feet.

The asking price translates to a land rate of S$1,901 per square foot per plot ratio (psf ppr), inclusive of a land betterment charge of approximately S$6 million.

This site is currently zoned for commercial and residential use, with outline permission from the Urban Redevelopment Authority (URA) for conversion to hotel use.

Development Prospects

The potential redevelopment of Katong Plaza into a hotel could yield up to 300 to 340 rooms, depending on room sizes, making it an attractive proposition for developers looking to capitalize on the booming tourism industry.

“With the rapid recovery of the tourism industry and high demand for hospitality, we strongly believe that the hotel use will suit 1 Brooke Road,” stated Terence Lian, Head of Investment Sales at Huttons Asia.

The 132 retail units and 14 residential apartments within Katong Plaza offer substantial returns for their owners.

Retail unit owners stand to receive proceeds ranging from S$390,000 to over S$5 million, while residential owners could pocket between S$2 million and S$5.3 million.

A Golden Opportunity for Hotel Operator

With its prime location, significant redevelopment potential, and the robust recovery of the tourism sector, Katong Plaza presents a golden opportunity for developers.

The public tender for Katong Plaza’s collective sale will close on July 25, providing a limited window for interested parties to secure a prime piece of real estate in one of Singapore’s most dynamic districts.

Developers and investors keen on capitalizing on this opportunity should act swiftly to explore the vast potential that Katong Plaza offers in Singapore’s ever-evolving real estate landscape.

Why Developing a Hotel at Katong Plaza Site is a Good idea

Prime Location in District 15

  • Located in the vibrant District 15 of Singapore

  • Renowned for its rich cultural heritage and eclectic mix of shops and eateries

  • Close proximity to popular attractions, ensuring excellent accessibility

High Demand for Hospitality Services

  • Rapid recovery of the tourism industry increasing demand for hospitality services

  • URA has granted outline permission for hotel use, highlighting the site’s potential

  • Ideal for catering to tourists and business travelers

Unique Cultural and Lifestyle Appeal

  • Katong and East Coast area known for Peranakan culture and modern amenities

  • Famous for culinary delights with numerous local and international eateries

  • Blend of cultural richness and modern convenience attractive for visitors

Strong Transport Connectivity

  • Well-served by major roads and public transportation networks

  • Upcoming Thomson-East Coast Line enhancing connectivity

  • Easy access to key areas like Orchard Road, Marina Bay, and Changi Airport

Proximity to Key Amenities

  • Close to East Coast Park, offering recreational activities and scenic views

  • Nearby shopping centers like Parkway Parade and I12 Katong

  • Access to educational institutions, healthcare facilities, and business hubs

Upturn in Singapore’s Commercial Real Estate Sector

Singapore’s commercial real estate market is showing strong signs of recovery and growth, marked by a series of successful commercial sales and significant property transactions.

The recent en bloc sales and offers on prime properties indicate a renewed investor confidence and a vibrant market outlook.

Successful Collective Sale of Delfi Orchard

One of the most notable transactions in recent months is the collective sale of Delfi Orchard.

This iconic property, located at 402 Orchard Road, was sold for an impressive S$439 million.

The sale price translates to approximately S$3,346 per square foot per plot ratio (psf ppr), making it one of the highest land rates in the Orchard Road area.

Delfi Orchard’s successful sale highlights the continued appeal of prime commercial sites in Singapore’s premier shopping district, attracting both local and international investors.

Delfi Orchard Sold En Bloc – Record Price (S$3,346 psf ppr)

Far East Shopping Centre Receives Offer

Another significant development in the market is the recent offer received for Far East Shopping Centre.

The Orchard Road retail property, initially put up for en bloc sale at a guide price of S$928 million, has received an offer slightly below S$900 million.

If the owners approve this offer, it will mark the second major commercial en bloc sale of the year.

This follows an earlier attempt to sell the property for around S$910 million, which fell through due to the rejection of a redevelopment proposal by the Urban Redevelopment Authority (URA).

Far East Shopping Centre Relaunched for En Bloc Sale in 2024
Recent Commercial Sales: Sin Ming Centre, Seletar Mall, and OneTen Paya Lebar

In addition to these high-profile en bloc sales, the commercial real estate market has seen other significant transactions.

Sin Ming Centre was sold to Apex Asia Development for S$49 million. This mixed-use development, located on Sin Ming Road, comprises commercial shops and residential units, underscoring the demand for well-located, mixed-use properties.

Seletar Mall also changed hands recently in a substantial transaction, reflecting the steady interest in suburban retail hubs.

Similarly, OneTen Paya Lebar, a mixed-use development combining office and retail spaces, was sold, highlighting the attractiveness of well-connected commercial properties in key growth areas.

Market Outlook: Strong Demand and Investor Confidence

The series of successful sales and property transactions point to a robust recovery in Singapore’s commercial real estate market.

The high demand for prime sites, coupled with substantial offers and competitive bidding, demonstrates strong investor confidence.

Properties like Delfi Orchard and Far East Shopping Centre exemplify the lucrative opportunities in the market, while sales of mixed-use developments like Sin Ming Centre, Seletar Mall, and OneTen Paya Lebar highlight the diverse investment appeal.

As Singapore continues to enhance its infrastructure and connectivity, the commercial real estate market is poised for sustained growth.

Investors remain keen on capitalizing on the strategic locations and redevelopment potential of commercial sites, ensuring a dynamic and competitive market landscape.

Katong Plaza En Bloc Site All Details
  • Status: For Sale

  • Tenure: Freehold

  • Land Size: 34,044 sq ft

  • Total Units: 146

  • Gross Floor Area: 102,132 sq ft

  • Address: 1 Brooke Road

  • District: 15

  • Nearest MRT: Marine Parade

  • Marketing Agent: Huttons Asia

  • Asking Price: S$188 million

  • Tender Close: July 25, 2024

Recent En Bloc Properties Sold

  1. Delfi Orchard (Record Price)
  2. Noel Building
  3. Shenton House
  4. Kew Lodge 
  5. GSM Building 
  6. GS Building