Roxy Square En Bloc 2024 – East Coast Road Collective Sale
Roxy Square, a well-known freehold mixed-use development in Katong, has been listed for collective sale at a minimum asking price of S$1.25 billion.
This ambitious price translates to a land rate of S$2,094 per square foot per plot ratio (psf ppr), inclusive of a land betterment charge (LBC), as stated by the marketing agent JLL.
Built in phases from the early 1980s to 2000, Roxy Square comprises Roxy Square Shopping Centre with its 296 retail units and 26 residential apartments, alongside the 576-room Grand Mercure Roxy Hotel.
The owners of the retail shops stand to gain proceeds ranging from S$579,000 to S$19.9 million each, while residential unit owners could receive between S$1.55 million and S$2.77 million each, according to a JLL spokesperson.
Roxy Square Redevelopment: Unveiling Katong’s Prime Investment Opportunity
Roxy Square in Katong presents a prime redevelopment opportunity that attracts developers with its strategic location, rich amenities, and robust potential for high returns.
The site, under the 2019 Master Plan by the Urban Redevelopment Authority (URA), is currently zoned for commercial, residential, and hotel use.
However, the entire site could be rezoned for commercial and residential purposes, allowing redevelopment into a high-rise mixed development.
The future project, subject to URA’s approval, could potentially include over 350 residential units and around 80,000 sq ft of retail and food and beverage space.
Additionally, about 172,000 sq ft could be designated for office, hotel, or other commercial uses.
Positioned in the vibrant neighborhood of Katong on the East Coast, the en bloc site is near key transportation links like the Marine Parade MRT station, enhancing its accessibility and appeal for both residential and commercial prospects.
The area’s wealth of shopping, dining options, and cultural attractions, including a mix of Peranakan culture and contemporary Singapore, makes it an appealing place to live and work.
The existing Grand Mercure Roxy Hotel highlights the site’s tourism and hospitality potential, offering possibilities for further development in a globally recognized travel hub.
Additionally, the scarcity of comparable mixed-use sites in Katong adds to Roxy Square’s allure, driving up developer interest and competition.
With ongoing regional development and a lack of new launches creating pent-up demand for modern residential units, Roxy Square could meet this need with high-end residential options or serviced apartments, making it an attractive investment in one of Singapore’s most sought-after districts.
Most En Bloc Owners Would Like To Know:
What Happen If Developer Bid Below the Reserve Price (See En Bloc Sale Process)
Market Trends and Comparable Sales
The marketing of Roxy Square comes amid a surge in activity in the commercial real estate market.
Notably, Delfi Orchard was acquired for S$439 million in an en bloc sale, reflecting a land rate of S$3,346 psf ppr.
Similarly, Shenton House in the Central Business District was sold to IOI Properties Group for S$538 million in November 2023.
Katong Plaza, another property in the area, was launched for collective sale at S$188 million, with a land rate of S$1,901 psf ppr, including a land betterment charge of about S$6 million.
High Street Centre also received an offer under S$700 million after its tender closed in June.
Tan Hong Boon, executive director of capital markets at JLL Singapore, noted the increasing popularity of mixed residential and commercial developments among home buyers.
He highlighted that there are currently no comparable mixed-use sites in the Katong area available for redevelopment, emphasizing the unique opportunity that Roxy Square presents.
The tender for Roxy Square closes on September 26, presenting developers with a rare opportunity to acquire and transform a prime site in one of Singapore’s most vibrant districts.
With its strategic location, development potential, and strong market interest, Roxy Square stands out as a significant investment opportunity in the current real estate landscape.