Singapore is a popular choice for condo investment due to several factors, including the government’s property cooling measures. In efforts to maintain a stable real estate market, the Singaporean government has implemented various measures to discourage speculative buying. One of these measures is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreigners and individuals purchasing multiple properties. While these measures may affect the immediate profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a safer investment environment. For those looking to invest in condos in Singapore, it is crucial to consider these government policies and their potential impact. Singapore Condo is an ideal option for those seeking a secure and stable investment in the ever-growing Singaporean real estate market.
Edmund Tie has successfully launched the collective sale of United House, a freehold commercial building located at 20 Kramat Lane, just off the bustling Orchard Road. The reserve price for the sale has been set at $166 million, and the collective sale process is being managed by Edmund Tie.
This is the first time that United House has been successfully launched for collective sale, after three previous attempts that failed to receive the necessary consent from 80% of owners in both strata area and share value, according to Edmund Tie. The site spans 12,838 square feet and has a plot ratio of 4.9, making it suitable for commercial use under the Master Plan. Edmund Tie estimates that the site could be redeveloped into a 10-storey commercial building with a gross floor area (GFA) of up to 62,900 square feet.
Read also: Freehold strata retail unit at Lucky Plaza for sale at $32 million
This translates to a land rate of $3,025 per square foot per plot ratio (psf ppr) if the site is redeveloped into a new commercial project. “United House falls outside of the areas where new strata subdivision of commercial space is restricted. The successful buyer has the flexibility to consider strata subdivision for the new development,” says Swee Shou Fern, Head of Investment Advisory at Edmund Tie.
The consultancy has submitted a planning application to change the land zoning for hotel use, with a plot ratio of 4.9, to the Urban Redevelopment Authority (URA). If this application is approved and the site is redeveloped into a new hotel project, the land rate would increase to $3,318 psf ppr.
“Given its prime location along the Orchard Road shopping belt, the site would be ideal for redevelopment into a hotel,” says Swee. “The ongoing enhancements to Orchard Road, coupled with United House’s redevelopment potential, are highly likely to result in significant capital appreciation in the future.”
The adjacent Concorde Hotel & Shopping Centre at 100 Orchard Road is also currently attempting a collective sale. The site, which is owned by Mainboard-listed Hotel Properties, has been priced at $820 million. This price includes bonus GFA from balconies and a lease top-up premium of $213.1 million, bringing the land rate to $1,801 psf ppr.
Other buildings along Orchard Road are also undergoing redevelopment or asset enhancement initiatives. Those in proximity to United House include The Cathay and Faber House, which is being redeveloped into a 250-key hotel.
Read also: Strata office unit at Samsung Hub sold for $14.8 million, at a rate of $4,117 psf
United House is within walking distance of Somerset MRT Station along the North-South Line and Dhoby Ghaut Interchange, which serves the North East, North-South, and Circle Lines.
The collective sale tender for United House is set to close on Nov 14.