PDF versionSingapore, - The Urban Redevelopment Authority (URA) launched the transitional office site at Mohamed Sultan Road for sale by public tender today. This land parcel is one of the three commercial sites to be sold through the confirmed list under the Government Land Sales Programme for the second half of 2008.
Located along Mohamed Sultan Road, the subject site has a land area of 6,176.5 square metres (6,648 square feet) and a maximum gross floor area of 9,265 sq m (99,728 sq ft). The site is located in a precinct characterized by various hotels as well as restaurants and cafes, which is about 15 minutes away from Clarke Quay MRT station and proximate to the Central Business District.
The development period for this transition office development could take about 1.5 to 2 years. By the time the proposed office development is expected be completed, which is about 2010, a large supply of about 4 million sq ft of office space would also be completed that year. This would result in a significant amount of competition in the office property market. Therefore this site may receive cautious bids or a few opportunistic bids. If the site is sold and the development is competed, it could still attract potential tenants like architects, designers and marketing firms, who do not require office space in the Central Business District. The current monthly gross rent of S$5 – S$7 per square foot (psf) in the Mohamed Sultan Road area.
The expected land price for the subject sites is in the range of S$10 million to S$13 million (equivalent to S$100 – S$130 psf ppr).
Median prices of new sales dipped by 2.9% to achieve S$1,035 psf compared to S$1,066 in February. In terms of the number of units that transacted above S$4,000, the month of March saw this increase slightly to 2 units sold above that price. The development that recorded the lowest transacted price is The Quartz at S$485 psf located at Buangkok Drive/Sengkang Central while the development that achieved the highest price is Scotts Square, situated on Scotts Road at a price of S$4,612 psf.
Nicholas Mak, Director of Consultancy & Research Department, Knight Frank, +65 6228 6821
Knight Frank and its New York-based partner, Newmark Knight Frank, operate over 140 offices in established and emerging property markets on five continents. Last year, the companies handled transactions valued at over $41billion with annual revenues of over $545 million.
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