Two redevelopment sites – Leong On Building, a commercial-residential property at 520 Balestier Road and a residential site at 241 Pasir Panjang Road (pictured) — have been sold.
The Balestier Road site was sold for S$92.3 million to Techkon Development (Sembawang), while the other property was acquired by Ley Choon Development, a subsidiary of Ley Choon Group, for S$13.23 million.
Leong On Building has a land area of 1,971.3 sq m and could yield a potential gross floor area (GFA) of 5,913.9 sq m and plot ratio of 3.0. Marketing agent Knight Frank said the Singapore Land Authority has granted in-principle approval to amalgamate the site with an adjoining state land parcel of 830 sq ft.
“Techkon Development emerged the winner in a keenly contested tender. The tender received overwhelming response and closed with several parties offering above S$75 million. The property generated very strong interest due its prominent location,” said Ian Loh, Director & Head of Investment at Knight Frank.
The site is home to a six-storey industrial building and is located within the heritage-rich Balestier area that is poised to become a new business, leisure and entertainment hub.
“The successful sale price of S$92,300,000 translates to an equivalent land rate of approximately S$1,470 psf ppr to S$1,498 psf ppr depending on the mix of Commercial and Residential quantum proposed, after factoring in an estimated development charge at prevailing rates. If an additional 10 percent balcony area for the residential component is included, and after factoring in the potential alienation of an adjoining State land, it translates to about S$1,376 psf ppr to S$1,385 psf ppr,” Loh added.
Meanwhile, the Pasir Panjang Road property is a family-held asset situated within an exclusive enclave of low-rise homes.
With a land area of 1.201.5 sq m, the freehold site has a plot ratio of 1.4. It comprises an existing old bungalow built in the 1930s that used to face the sea before the West Coast Highway was constructed.
“The sale price of S$13,230,000 translates to a land rate of approximately S$1,023 psf on land. The site is attractive as it is located within 500 metres to the Haw Par Villa MRT station. The buyers are looking at redeveloping the property into either strata landed or strata apartment units. The new development would likely appeal to buyers who prefer niche boutique developments,” said Mary Sai, Executive Director for Investment (Commercial Sales) at Knight Frank.
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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