Ravi Chandran
CBRE, with joint marketing agent HRL Properties, has launched two freehold redevelopment sites located at 2 and 21 Cavan Road, off Lavender Street, for sale by public tender.
2 Cavan Road has a land area of approximately 20,100 square feet and currently accommodates a part-single-part-three-storey light industrial-cum-warehouse building which is understood to have been built in the 1950’s. Located just across the street, 21 Cavan Road is a smaller site of 8,529 square feet currently occupied by a four-storey light industrial building that was completed in 1975.
Under the 2014 Master Plan, the two freehold redevelopment sites are zoned “residential with commercial at 1st storey” with a plot ratio of 3.0. As the current gross floor area of both buildings are under-utilised, the successful buyer can consider maximizing the gross floor area of 2 Cavan Road to approximately 60,301 square feet and 21 Cavan Road to 25,588 square feet upon redevelopment.
https://www.icompareloan.com/resources/hong-kong-style-housing/
Subject to relevant authorities’ approval, new extensions within the conservation guidelines of up to a six-storey building height are permitted, of which relevant development charges will be applicable.
The two freehold redevelopment sites belong to a single owner, so approval from strata titles board will not be required.
Table of Contents
Indicative pricing for 2 Cavan Road is S$47.4 million and that for 21 Cavan Road is S$12.6 million. Assuming the existing building at 2 Cavan Road is conserved and incorporated into the proposed redevelopment, the development charge for this site will be S$18.9 million.
Meanwhile, a development charge of S$15.5 million is payable for the redevelopment of the smaller site at 21 Cavan Road. After factoring in these development charges, the guide price for each site works out to S$1,100 per square foot per plot ratio.
Mr Low Choon Sin, Manager, Capital Markets, CBRE said, “We expect keen interest from mid-sized developers and contractors due to the palatable quantum as well as the potential to redevelop both sites into a boutique mixed-use development. Such mixed-use developments typically have a strong appeal to home buyers due to the freehold tenure in a city fringe location. The short walking distance to both Bendemeer and Lavender MRT stations are strong plus factors.”
In recent years, the Lavender/Jalan Besar area in which the two freehold redevelopment sites are located, has undergone a transformation into a vibrant lifestyle location.
With high-rise residential and commercial developments sprouting up, the area in which the two freehold redevelopment sites are in provides a diverse range of entertainment, cultural and lifestyle attractions including hipster cafes and bars that attract high footfall and immediate catchment.
Prominent landmarks include the newly completed ARC 380, City Square Mall, Jalan Besar Sports Centre, City Square Residences and the upcoming Sturdee Residences. The subject property is also well-connected to the key precincts in Singapore, such as the CBD which is only a 10-minute drive or train ride away.
Interested parties in the two freehold redevelopment sites may submit bids for either one or both sites. The public tender exercise closes on 30 April 2019 at 3pm.
https://www.icompareloan.com/resources/singapore-property-buyers-cautious/
Mr Paul Ho, Chief Mortgage Consultant at iCompareLoan, said that despite the property curbs introduced by the Government last year, Singapore is still an attractive residential market for investors.
Although the property market exuberance has been curbed to some extent with the property cooling measures introduced last year, Singapore as a property market investment destination still remains among the top – shoulder to shoulder – with other cities in the world like London, New York, Shanghai and Sydney.
“We have to be mindful that there is a lot of excess capital fluidity here and at 1.9 – 2 percent, Singapore has one of the lowest interest rates for home loans in the region,” he added.
The biggest gainers following the new 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 offices and shophouses markets as they are not subjected to this round of purchase or sales restrictions/encumbrances.
How to Secure a Commercial Loan Quickly
Are you planning to capitalise on the uptrend of Singapore’s commercial sector but unsure of funding for investment? Don’t worry because iCompareLoan mortgage brokers can set you up on a path that can get you a commercial loan in a quick and seamless manner.
Alternatively you can read more about the Best Commercial Loans in Singapore before deciding on your next purchase. Our brokers have close links with the best lenders in town and can help you compare Singapore’s best commercial loans and settle for a loan package that best suits your commercial purchase needs.
Whether you are looking for a new commercial loan or for a refinancing package for your commercial properties, our brokers can help you get everything right from calculating mortgage repayment, comparing interest rates, all through to securing the best commercial loans which fits your profile. And the good thing is that all our services are free of charge. So it is all worth it to secure the best commercial loans through us.
You may contact us today for advice on a new commercial loan or refinancing advice, or for Personal Finance advice.
You may also speak to our Panel of Property agents.
