Anson Rd/Enggor St site to be put up for public tender
The Urban Redevelopment Authority has received a committed bid of $172 million for a commercial site at Anson Road/Enggor Street and will now put it up for public tender. The 0.37 ha site was only put on the Government Land Sales reserve list in March.
Based on the committed bid, the site - which has a maximum permissible gross floor area of 383,808 sq ft - works out to be about $448 per square per plot ratio (psf ppr).
Most property consultants, however, believe that it will eventually fetch a much higher price.
Savills Singapore director of marketing and business development Ku Swee Yong reckons that bids of between $1,000 and $1,200 psf ppr can be expected. He adds that the relatively low reserve price is common in a rapidly rising property market. ‘The figure could be based on values three-quarters of a year ago,’ he said.
Indeed, so far this year, three office buildings - Temasek Tower, SGX Centre and SIA Building have been sold at benchmark prices, and Mr Ku says the developer for the Anson Road/Enggor Street site can even hope to sell the new building for around $2,000 psf.
And even if the new building is not for sale, a developer would probably achieve good rental returns.
Jones Lang LaSalle regional director and head of investments Lui Seng Fatt believes that if construction is put on a fast track, pre-commitment of leases as early as end-2008 could see rents start at between $8-$9 psf per month. Mr Lui notes that already, new office buildings like 55 Market Street are fully leased. ‘Even at today’s prices, it would not be difficult to get $7 psf,’ he added.
Mr Lui does add that the size of the floor plate will be important with most businesses in the CBD requiring 15,000 sq ft. According to URA, the Anson Road/Enggor Street site can have a floor plate of about 18,000 sq ft. The site has a height limit of around 50 storeys.
Source : Business Times - 15 May 2007
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