SINGAPORE (EDGEPROP) – A freehold commercial corner development site with a 40-metre wide dual frontage along Serangoon Road and Petain Road has just been launched for sale via an Expression of Interest (EOI) exercise by exclusive marketing agent, JLL. Freehold commercial corner development site comes with a guide price of $22 million reflecting $1,471 psf ppr.
The corner development site consists of 450 Serangoon Road and 452 Serangoon Road. Salient details on the two properties as follows:
|Address||450 Serangoon Road||452 Serangoon Road|
|Description||A 2-storey conservation shophouse with 4-storey rear extension.||An existing 4-storey corner building with F&B use on the ground floor.|
|Land Area||1,520 sqft||3,464 sqft|
|Existing Floor Area (approx.)||4,050 sqft||7,111 sqft|
|Master Plan 2014|
Zoned “Commercial” with Plot Ratio “3.0”Under the Jalan Besar Conservation Area
|Written Permission Granted||–||WP granted on 17 March 2017 to redevelop 452 Serangoon Road into a commercial-cum-residential development with approved built-up of 10,391 sqft. Development charge to intensify 452 Serangoon Road has been paid.|
The freehold commercial corner development site occupies a prominent corner location with a combined land area of 4,984 sqft. Incoming purchasers have the benefit of amalgamating both properties to develop a 14,952 sqft corner development.
Subject to approval from relevant authorities, potential uses include F&B, retail, showroom, office, medical, entertainment and serviced apartments amongst others.
The freehold commercial corner development site is easily accessible being located just 150 metres away from Farrer Park MRT station.
Public transportation is conveniently located along the main road. Located within a short 10-minute drive of the Central Business District (CBD) and Orchard Road, the site is also easily accessible to other parts of Singapore via Pan Island Expressway (PIE) and Central Expressway (CTE).
Built in early 1800’s, Serangoon Road was one of earliest roads built in Singapore. It is a one-way street which runs from Little India to Kallang. Characterised by a long stretch of pre-war shophouses lining its streets, Serangoon Road is one of Singapore’s busiest roads. The area is part of the Little India conservation area which was gazetted on 7 July 1989 by the URA. During the weekends and religious festivals (such as Thaipusam and Deepavali), the area livens up with both local and tourist visitors.
The indicative guide price of the freehold commercial corner development site is in the region of $22 million, reflecting a unit land rate of about $1,471 per sqft per plot ratio.
Mr Clemence Lee, Associate Director, Capital Markets, JLL, said: “Being situated on a prominent corner site, 450 & 452 Serangoon Road present developers and owner-occupiers with a rare opportunity to develop an iconic flagship building with potential naming rights. We’re confident that the prospective buyers would be able to appreciate the site’s excellent attributes such as its freehold tenure, city fringe location and flexible potential uses.”
“With its excellent location and strong transport infrastructure, the Farrer Park / Serangoon Road area has gentrified into a vibrant commercial and medical hub over the years with the opening of City Square Mall, Connexion and Park Hotel Farrer Park. As the area further develops, there’s potential for more capital and rental upside. Some of the upcoming developments in the area include Centrium Square, a 19-storey commercial development comprising of retail, medical suites and office space, and Uptown @ Farrer, a mixed-use development by Low Kheng Huat which will consist of retail, residential and a 240-unit serviced residence operated by lyf Farrer Park Singapore”.
“After factoring in the development cost, the blended break even for the new development would be in the region of $2,000 psf. This compares favourably to the average price of $5,000 – $5,500 psf achieved for the strata retail units and $2,400 – $2,500 psf for the strata office units at the nearby Arc 380 and Centrium Square.”
As the property sits on land zoned for commercial use, foreigners are eligible to purchase the site. There is also no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the purchase of the property.
The property will be marketed through an Expression of Interest exercise which closes on Thursday, 13 September 2018, at 3 pm.
The government has acted to cool the residential property market. Additional Buyer’s Stamp Duty (ABSD) rates have been raised for some categories of residential property purchases, and the Loan-to-Value (LTV) limits on residential property purchases have been lowered, all with effect from 6 July 2018. Strata-office and shophouse markets could emerge as the other biggest gainers after the new property cooling measures.
JLL earlier said: “The biggest gainers following this set of measures will likely be owners of strata-offices and shophouses approved for commercial use. The government’s swift response to curb home price growth has tampered with the prospects of residential properties as attractive investments. Investors looking for alternatives to park their money could divert their attention to the strata office and shophouse markets as they are not subjected to this round of purchase or sales restrictions/encumbrances.”
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