Site offers buyers with flexible redevelopment potential
Singapore, 12 October 2023 – Edmund Tie & Company (EDMUND TIE), as the sole marketing agent, is offering for collective sale a prime freehold property at 50 Playfair Road, which is within the heart of Tai Seng, Singapore’s established business hub of the East.
The tender for 50 Playfair Road will close on 22 November 2023, at 3pm.
Strategically bounded by Playfair Road and Harper Road, the regular-shaped site which currently seats an 8-storey development enjoys high visibility via the dual road frontage of approximately 120 m. The corner land plot has a site area of approximately 2,489 sq m.
Under URA’s Master Plan 2019, the site is zoned for “Business 1 – White” use with a plot ratio of 3.5. The site can be redeveloped to have a maximum gross floor area of 8,711.5 sq m – with an option to use the entire space for “Business 1” light industrial use, or to set aside at least 6,222.5 sq m for light industrial use, while the remaining 2,489 sq m can be allocated for “White” use.
Uses permissible under the “White” component zoning include shops, cafes and restaurants, showrooms, offices, associations and recreational clubs, among others, subject to the approval of relevant authorities.
The guide price for 50 Playfair Road is S$70 million, which could translate to a land rate of S$776 to S$986 per square foot per plot ratio, depending on the proportion of industrial and white use.
There is no restriction on foreign ownership and no Additional Buyer Stamp Duty (ABSD) is payable.
Ms Swee Shou Fern (徐晓芬), Head of Investment Advisory at EDMUND TIE, says, “Sites zoned for “Business 1 – White” use is scarce, with only a few clusters across Singapore1. 50 Playfair Road, hence, offers a unique opportunity for owner-occupiers looking to develop and custom-build a state-of-the-art, next-generation corporate headquarters. The modern facility could seamlessly integrate light industrial and various business functions’ operations, making it a prime choice for businesses who are seeking to streamline and consolidate their operations.”
“Alternatively, the successful buyer can also redevelop the property into strata factories for full light industrial use. Quality strata factories located near public transportation nodes such as MRT and well-served by amenities continue to be highly sought after. This is evidenced by the nearby AZ@Paya Lebar completed in 2014, where prices of strata factories have increased some 6% from an average of S$1,389 per sq ft in H2 2022 to S$1,472 per sq ft in H1 2023,” continues Ms Swee. “The developer also has the option to redevelop the property into strata food factory to meet the strong demand for such uses. In-principle approval for general food factory use has been obtained for the property.”
Demand for industrial space has been strong. According to the latest JTC’s Quarterly Report, as of Q2 2023, price and rental indices of all industrial space rose 6.9% y-o-y and 9.4% y-o-y, respectively. Zooming into rental growth trends, the increase was led by the multi-user factory and warehouse segments, which recorded a corresponding y-o-y growth of 11.5% and 8.6%.
Ms Swee adds, “Singapore’s industrial real estate sector holds a positive outlook, underpinned by relatively tight supply and robust demand. This is most probably one of the few rare sites of such zoning made available for sale in the private sector. The last notable transaction with a similar land-use zoning in the private sector was the collective sale of Citimac, where Grantral Mall @ MacPherson currently sits. It was brokered by EDMUND TIE in 2017 at S$430.1 million, which translates to approximately S$1,047 per square foot per plot ratio.”
Over the years, Tai Seng business hub has drawn many well-established businesses to set up their corporate headquarters due to its central location and proximity to transportation nodes. The subject property is conveniently located 400 metres from Tai Seng MRT Station on the Circle Line. It is also within a short drive to Kallang-Paya Lebar Expressway and Pan Island Expressway. Prominent developments in the area include BreadTalk IHQ, Grantral Mall @ MacPherson and 18 Tai Seng, offering a wide range of F&B, banking and lifestyle amenities.
1 Clusters across Singapore that have sites that are zoned “Business 1 – White” include Tai Seng, Kallang Junction, Tampines and Woodlands.
For further information contact:
Swee Shou Fern (Ms)
DID: +65 6393 2523
Media please contact:
Seah Li Ching (Ms)
DID: +65 6393 2369