CBD, Tampines office sites set to go on market
Two land plots where developers can build new office buildings are set to come on the market soon.
One is in the Central Business District while the other is in Tampines Regional Centre.
The CBD plot is at the junction of Anson Road and Enggor Street, behind the upcoming Icon condominium.
It has a land area of 39,000 sq ft and can host an office building with a total floor area of about 383,000 sq ft.
The plot’s size will also allow ‘good-sized floor plates of about 18,000 sq ft’, a coveted feature in office blocks, the Urban Redevelopment Authority (URA) said.
The URA released this 99-year leasehold site on to its reserve list yesterday. Interested developers can apply to have the site launched for public tender by submitting a bid that meets the URA’s reserve price.
Property consultants expect keen interest in this plot, in view of the acute supply crunch in prime office space.
Mr Li Hiaw Ho, executive director of CB Richard Ellis Research, said that top bids for the land are likely to be between $326 million and $345 million, or about $850 to $900 per sq ft per plot ratio (psf ppr).
The site is ‘likely to be popular with medium-sized developers, or joint ventures between funds and developers or contractors’, added Mr Nicholas Mak, director of research and consultancy at Knight Frank.
Meanwhile, the HDB is launching another 99-year leasehold office site, at Tampines Grande, today.
The 86,000 sq ft plot is located next to the AIA Building on Tampines Avenue 5. It can be built up to 360,000 sq ft of gross floor area.
Mr Mak expects this Tampines site to be ‘fairly popular’, with about four to six bids ranging from $750 to $850 psf ppr.
Regional centres such as Tampines are also seeing an increase in demand for office space as rising rents in the central areas force firms to relocate some operations.
‘There could be demand from financial firms for their backroom operations in non-CBD areas where the cost is lower,’ he said.
Source : Straits Times - 21 Mar 2007
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