Ravi Chandran
Knight Frank Singapore, the exclusive marketing agent representing the interests of the owners of Leshan Gardens, announced the launch of the sale of Leshan Gardens on July 15. Leshan Gardens is a 104-year leasehold, mid-rise residential redevelopment site off Geylang Road, by tender.
Leshan Gardens has a site area of 1,524.8 sq m (approx. 16,412 sq ft). Under the 2014 Master Plan, the site is zoned “Residential” with a Gross Plot Ratio (GPR) of 2.8 and can yield approximately 45,955 sq ft of Gross Floor Area (GFA) upon redevelopment.
Based on the potential GFA and assuming an average unit size of 85 sq m, there is potential for 50 new residential units upon redevelopment of Leshan Gardens.
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Leshan Gardens is approximately 600 metres away from both Aljunied and Dakota MRT stations, and is a brisk 20-minute drive to the Central Business District and Changi International Airport.
“Given Leshan Gardens is wholly owned by an entity, there is no need for the Strata Titles Board’s approval. Furthermore, as the site is located near the rejuvenated Paya Lebar commercial hub, residents can enjoy a wide array of leisure, entertainment and dining amenities at the upcoming PLQ Mall, Singpost Centre, Paya Lebar Square and Kinex Mall,” says Mr Ian Loh, Head of Investment and Capital Markets, Knight Frank Singapore.
The tender for Leshan Gardens will close on 15 August 2019, Thursday at 3.00 pm.
4 Adjoining Conservation Shophouses
Simultaneously, Knight Frank Singapore also announced the offering of a row of 4 freehold adjoining conservation shophouses in Geylang for sale via Expression of Interest (EOI). These 2-storey shophouses were in the news earlier this year when a raging fire engulfed a row of 7 shophouses in the early hours of Sunday, 17 March 2019, resulting in a three-hour operation involving 60 firefighters.
The subject shophouses are located along the main stretch of Geylang Road, near the junction of Geylang Road and Lorong 33 Geylang. Paya Lebar and Dakota MRT stations are situated nearby. Prior to the fire, the shophouses were occupied by a tyre business, furniture retailer and electrical shop. The 4 shophouses have a total land area of 5,113 sq ft and are zoned “Commercial” with an allowable GPR of 3.0 under the Urban Redevelopment Authority’s (URA) 2014 Master Plan. A new building thereon can possibly be developed achieve a total GFA of approximately 15,339 sq ft.
Ms Mary Sai, Executive Director, Investment and Capital Markets, Knight Frank Singapore, shares, “Prospective buyers can redevelop the land based on conservation guidelines set out by URA. As this is a secondary settlement area, there is potential for a rear extension, subject to approval from the authorities.
“With the shophouses zoned for commercial use, there will be no Additional Buyer’s Stamp Duty and Seller’s Stamp Duty payable. Both foreigners and companies are eligible to buy the properties, which are suitable for use as F&B outlets, retail shops or offices, also subject to approval from the authorities.”
As the owners are not GST-registered, no GST will be payable for the properties.
Geylang is an area with rich architectural heritage and is within the Paya Lebar planning area, 1 of 5 targeted growth areas in Singapore. The owners are expecting healthy levels of interest from both investors and corporate entities in acquiring these freehold commercial assets.
The guide price for the 4 shophouses is S$14 million, and is exclusively marketed by Knight Frank Singapore.
The EOI will close on 15 August 2019, Thursday at 3.00 pm.
The biggest gainers following the 2018 property cooling measures is likely be owners of strata portfolio of offices and shophouses approved for commercial use. The property cooling measures affected almost all categories of buyers and is predicted to achieve its intended objectives of cooling demand and moderating price growth.
One report said investors looking for alternatives to park their money in the wake of property cooling measures, would divert their attention to the strata office and shophouse markets as they are not subjected to this round of purchase or sales restrictions/encumbrances.
Properties such as the 4 freehold adjoining conservation shophouses in Geylang may be bought under personal name, but total debt servicing Total Debt Servicing Ratio (TDSR) will apply on the individual’s income on such purchases. To buy a commercial or industrial property under company name, total debt servicing ratio TDSR also applies on the individual director’s income if the company is an investment holding company or an operating company that is loss-making or does not have sufficient cash flow to servicing the repayment.
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