Freehold commercial corner site near Farrer Park MRT for sale

Indicative guide price is around S$22m, which works out to unit land rate of about S$1,471 psf ppr

Fri, Aug 17, 2018


A FREEHOLD commercial corner development site with a 40-metre wide dual frontage along Serangoon Road and Petain Road has been launched for sale via an Expression of Interest (EOI) exercise by marketing agent JLL.

The corner development site consist of 450 Serangoon Road - a two-storey conservation shophouse with a four-storey rear extension - and 452 Serangoon Road, which is an existing four-storey corner building with food and beverage (F&B) use on the ground floor.

The site occupies a corner location with a combined land area of 4,984 square feet. The indicative guide price is in the region of S$22 million, which works out to a unit land rate of about S$1,471 per square foot (psf) per plot ratio.

The buyer will have the option to amalgamate both properties to develop a 14,952 sq ft corner development.

Subject to approval from the relevant authorities, potential uses include F&B, retail, showroom, office, medical, entertainment and serviced apartments.

The site is 150 m from Farrer Park MRT station and is about a 10 minute drive from the Central Business District and Orchard Road.

JLL's associate director of capital markets Clemence Lee said that the corner site gives developers and owner-occupiers a "rare opportunity" to develop an iconic flagship building with potential naming rights.

"We are confident that the prospective buyers would be able to appreciate the site's excellent attributes such as its freehold tenure, city fringe location and flexible potential uses," he said.

The Farrer Park and Serangoon Road area has been gentrified into a vibrant commercial and medical hub in recent years with the opening of City Square Mall, Connexion and Park Hotel Farrer Park, among other developments. "As the area further develops, there is potential for more capital and rental upside," said Mr Lee.

Some of the upcoming projects in the area include Centrium Square, a 19-storey commercial development comprising of retail, medical suites and office space, and Uptown @ Farrer, a mixed-use development that will consist of retail, residential and a 240-unit serviced residence.

After factoring in the development cost, the blended break-even for the new development would be in the region of S$2,000 psf, said Mr Lee.

"This compares favourably to the average price of S$5,000 to S$5,500 psf achieved for the strata retail units and S$2,400 to S$2,500 psf for the strata office units at the nearby Arc 380 and Centrium Square," he added.

As the property sits on land zoned for commercial use, foreigners are eligible to purchase the site. There is also no Additional Buyer's Stamp Duty or Seller's Stamp Duty imposed on the purchase.

The EOI closes on Sept 13 at 3 pm.