Source : The Business Times, September 26, 2007
SEVENTEEN two-storey conservation shophouses opposite KeyPoint at Jalan Sultan were yesterday offered to suitable investors by the Urban Redevelopment Authority (URA). The reserve-list site is 0.14 hectares in size.
A URA spokeswoman said: 'The land parcel can be put to commercial uses such as hotel, office, shops and restaurants. There is no control on the quantum but detailed proposals for the use and layout within the shophouses are subject to approval of all relevant Competent Authorities.'
URA's News Release
http://app.sprinter.gov.sg/data/pr/20070925998.pdf
Knight Frank reckons the plot will attract good demand from boutique hotel developers and those keen on turning the units into office space, given the supply crunch in these two sectors.
When restored, the shophouses would also be suitable for housing food and beverage outlets, in line with the proliferation of such venues in the Kampong Glam Conservation Area where the latest parcel is located. 'Tender prices are estimated in the $7 million to $10.2 million range, equivalent to $470 to $680 per square foot of land area,' Knight Frank director Nicholas Mak said.
Its auctions director, Mary Sai, a veteran in the shophouse market, reckons investors will offer the URA around $500,000 to $600,000 per shophouse unit. 'The restoration cost will amount to about $400,000 to $500,000 per shophouse, bringing the all-in investment to around $1 million or more per shophouse unit. This is in line with the $1.2 million to $1.3 million that sellers of 99-year leasehold restored shophouses with land areas of under 1,000 sq ft are generally seeking,' Ms Sai said.
URA will launch the reserve-list site for tender only if there is a successful application with an undertaking to bid a minimum price that is acceptable to the state.
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