Katong Plaza En Bloc 2024 – Optimal Site for a New Hotel
Katong Plaza, a 41-year-old property located in Singapore’s bustling east district, has been put on the market for a collective sale with an asking price of S$188 million.
This sale, managed by Huttons Asia, represents a significant opportunity for developers eyeing prime freehold sites in a sought-after area.
Situated at 1 Brooke Road, Katong Plaza occupies a freehold site of 34,044 square feet.
The asking price translates to a land rate of S$1,901 per square foot per plot ratio (psf ppr), inclusive of a land betterment charge of approximately S$6 million.
This site is currently zoned for commercial and residential use, with outline permission from the Urban Redevelopment Authority (URA) for conversion to hotel use.
Development Prospects
The potential redevelopment of Katong Plaza into a hotel could yield up to 300 to 340 rooms, depending on room sizes, making it an attractive proposition for developers looking to capitalize on the booming tourism industry.
“With the rapid recovery of the tourism industry and high demand for hospitality, we strongly believe that the hotel use will suit 1 Brooke Road,” stated Terence Lian, Head of Investment Sales at Huttons Asia.
The 132 retail units and 14 residential apartments within Katong Plaza offer substantial returns for their owners.
Retail unit owners stand to receive proceeds ranging from S$390,000 to over S$5 million, while residential owners could pocket between S$2 million and S$5.3 million.
Most En Bloc Owners Would Like To Know:
What Happen If Developer Bid Below the Reserve Price (See En Bloc Sale Process)
A Golden Opportunity for Hotel Operator
With its prime location, significant redevelopment potential, and the robust recovery of the tourism sector, Katong Plaza presents a golden opportunity for developers.
The public tender for Katong Plaza’s collective sale will close on July 25, providing a limited window for interested parties to secure a prime piece of real estate in one of Singapore’s most dynamic districts.
Developers and investors keen on capitalizing on this opportunity should act swiftly to explore the vast potential that Katong Plaza offers in Singapore’s ever-evolving real estate landscape.
Why Developing a Hotel at Katong Plaza Site is a Good idea
Prime Location in District 15
High Demand for Hospitality Services
Unique Cultural and Lifestyle Appeal
Strong Transport Connectivity
Proximity to Key Amenities
Upturn in Singapore’s Commercial Real Estate Sector
Singapore’s commercial real estate market is showing strong signs of recovery and growth, marked by a series of successful commercial sales and significant property transactions.
The recent en bloc sales and offers on prime properties indicate a renewed investor confidence and a vibrant market outlook.
Successful Collective Sale of Delfi Orchard
One of the most notable transactions in recent months is the collective sale of Delfi Orchard.
This iconic property, located at 402 Orchard Road, was sold for an impressive S$439 million.
The sale price translates to approximately S$3,346 per square foot per plot ratio (psf ppr), making it one of the highest land rates in the Orchard Road area.
Delfi Orchard’s successful sale highlights the continued appeal of prime commercial sites in Singapore’s premier shopping district, attracting both local and international investors.
Far East Shopping Centre Receives Offer
Another significant development in the market is the recent offer received for Far East Shopping Centre.
The Orchard Road retail property, initially put up for en bloc sale at a guide price of S$928 million, has received an offer slightly below S$900 million.
If the owners approve this offer, it will mark the second major commercial en bloc sale of the year.
This follows an earlier attempt to sell the property for around S$910 million, which fell through due to the rejection of a redevelopment proposal by the Urban Redevelopment Authority (URA).
Recent Commercial Sales: Sin Ming Centre, Seletar Mall, and OneTen Paya Lebar
In addition to these high-profile en bloc sales, the commercial real estate market has seen other significant transactions.
Sin Ming Centre was sold to Apex Asia Development for S$49 million. This mixed-use development, located on Sin Ming Road, comprises commercial shops and residential units, underscoring the demand for well-located, mixed-use properties.
Seletar Mall also changed hands recently in a substantial transaction, reflecting the steady interest in suburban retail hubs.
Similarly, OneTen Paya Lebar, a mixed-use development combining office and retail spaces, was sold, highlighting the attractiveness of well-connected commercial properties in key growth areas.
Market Outlook: Strong Demand and Investor Confidence
The series of successful sales and property transactions point to a robust recovery in Singapore’s commercial real estate market.
The high demand for prime sites, coupled with substantial offers and competitive bidding, demonstrates strong investor confidence.
Properties like Delfi Orchard and Far East Shopping Centre exemplify the lucrative opportunities in the market, while sales of mixed-use developments like Sin Ming Centre, Seletar Mall, and OneTen Paya Lebar highlight the diverse investment appeal.
As Singapore continues to enhance its infrastructure and connectivity, the commercial real estate market is poised for sustained growth.
Investors remain keen on capitalizing on the strategic locations and redevelopment potential of commercial sites, ensuring a dynamic and competitive market landscape.