The current Malayan Railway station site located at Tanjong Pagar provides tremendous opportunities for commercial and residential development. However, these will likely take shape in 2015 or 2016, according to some property watchers.
Malaysia and Singapore announced the relocation of Tanjong Pagar railway station to Woodlands by July 2011.
Some property observers said the Tanjong Pagar site, which is located in the Southern part of Singapore, is on prime land. It is near a huge shopping mall Vivocity and the city centre.
The size of the land is the main attraction, spanning about five football fields. And a high-rise commercial development with more than one million square feet of gross floor area could be constructed in the area.
At present, the site is zoned for commercial use but several market watchers said that residential units may also be allowed.
Cushman & Wakefield’s managing director Donald Han said: “Currently it’s zoned under commercial, that means potentially you might be allowed some retail component, you’d be allowed commercial office as well.”
“I think a developer, whoever comes in, to take over the land potentially can build a combination of retail as well as office. But that being said, a lot of the commercial prime properties of the outskirts of the main financial district may be allowed potential conversion of use to residential.”
“So in some cases, you may get a combination of commercial and potentially residential, on top of this site. The site is huge so it can have a multitude variety of different uses in that sense, subject to of course, getting the necessary planning approval.”
“If it’s going to be pure commercial, based on the land area, over the plot ratio, we estimate price per square foot, per plot ratio about S$600-650 per square foot, plot ratio. That translates to a price, total quantum of about S$650-700 million in that sense.”
“If you get conversion of residential use, the value for residential, which is currently highest and best used in the financial district can potentially be about 25 to 30 per cent higher than the figures I quoted you just now."