Colliers International, a property consultancy firm, has launched the tender of a 32,544-sq-ft freehold industrial site at 21 Kim Keat Road, with an asking price of $42 million.
The asking price works out to $734 psf ppr, inclusive of a possible development charge of $25 million.
The site is intended for "Business 1" use under the 2008 Master Plan, but the URA has identified and will consider re-zoning the site from industrial to residential use with a 2.8 gross plot ratio, according to Colliers.
Ho Eng Joo, executive director of Colliers, expects the land parcel to attract a pool of interested buyers because it is situated in a mature enclave and at the city fringe, well-served by a host of amenities.
The site may attract “enough enquiries from small developers which may have been excluded by the higher prices of government land sales,” said Mr. Nicholas Mak, a real estate lecturer from Ngee Ann Polytechnic. However, he believes that the asking price is "a little high because there is no guarantee that the site will be re-zoned from industrial to residential use.”
“Even if there is, it is still a bit high. At $734 per square foot per plot ratio, the breakeven price is between $1,100 and $1,200,” he added.
Colliers will close the tender for the site on April 28.