United House En Bloc 2024 Kramat Lane Collective Sale

What makes United House even more attractive to potential buyers is its exclusion from the areas where new strata subdivision of commercial space is restricted.

According to Swee Shou Fern, head of investment advisory at Edmund Tie, this allows the future buyer to consider strata subdivision for the new development, providing more flexibility and investment appeal.

A planning application to change the land zoning to hotel use has also been submitted to the URA.

If approved, the plot ratio of 4.9 could accommodate a new hotel development, raising the land rate to S$3,318 psf ppr.

The prime Orchard Road location, combined with ongoing enhancements to the shopping belt, further enhances the site’s redevelopment potential, making it highly likely to appreciate in value.

United House is situated near key commercial properties such as Concorde Hotel and Shopping Centre, which is also attempting an en bloc sale, and it benefits from its proximity to Somerset MRT Station and Dhoby Ghaut Interchange.

The tender for the collective sale of United House will close on November 14, 2024, drawing attention from investors and developers looking to tap into Orchard Road’s bustling commercial real estate market.

In recent years, the Orchard Road district has witnessed a series of high-profile en bloc sales, reflecting the area’s enduring appeal to developers seeking prime redevelopment opportunities.

These collective sales have been driven by Orchard Road’s position as Singapore’s premier retail and commercial hub, with a blend of luxury shopping, hospitality, and residential spaces.

One of the most notable en bloc deals in the area was the sale of Delfi Orchard, which was snapped up by City Developments Ltd (CDL) for S$439 million.

The freehold property, located at 402 Orchard Road, marked a record-breaking land rate of S$3,346 per square foot per plot ratio (psf ppr).

Delfi Orchard’s sale underscored the high demand for commercial real estate along Orchard Road, where developers continue to show strong interest in premium properties with redevelopment potential.

Another prominent sale was Ming Arcade, which fetched S$172 million in December 2022.

This deal translated to a land rate of S$3,125 psf ppr and attracted much attention due to its prime location and the potential for the site to be redeveloped into a commercial and residential mix.

Park House, another high-profile en bloc deal, was sold to Hong Kong-based Shun Tak Holdings for S$375.5 million, or S$2,910 psf ppr, setting a record for the highest price per square foot for a residential development at the time.

Tanglin Shopping Centre, one of the Orchard Road icons, was sold for S$868 million to Pacific Eagle Real Estate.

The land rate for this site worked out to S$2,769 psf ppr. This transaction followed multiple unsuccessful attempts and highlighted the attractiveness of Orchard Road properties, despite the high prices and challenges in securing buyers.

While many deals have closed successfully, not every collective sale in the Orchard Road district has gone through.

Far East Shopping Centre, for example, received a S$910 million offer in 2023, but the deal fell through after the buyer failed to secure the necessary approvals from the Urban Redevelopment Authority (URA).

The property was subsequently relaunched for sale, but it remains on the market as of the latest updates.

These recent en bloc sales in the Orchard Road district continue to affirm the area’s value as a sought-after location for developers, promising prime real estate for future commercial, residential, and mixed-use developments.

As Orchard Road undergoes further transformation, these high-value sales will likely set the stage for more landmark deals in the near future.