The Urban Redevelopment Authority (URA) has given the go-ahead for the proposed conservation of Golden Mile Tower on a voluntary basis. This would only take place if the 99-year leasehold development is successfully sold in a collective sale and the new owner intends to redevelop the property.
According to documents obtained by EdgeProp Singapore, the government has specified that if the developer chooses to conserve at least the existing cinema block, it could potentially increase the site’s permissible gross plot ratio (GPR) from 4.46 to 5.6, based on the current site area of 93,902.5 sq ft. This would in turn increase the allowable gross floor area (GFA) for the future redevelopment to 525,854 sq ft, a significant boost from its current GFA of 419,142 sq ft. Additionally, the voluntary conservation option would also grant a higher maximum building height of 164m, as opposed to the current limit of 145m.
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One key factor to consider when investing in condos in Singapore is the impact of the government’s property cooling measures. In recent years, the Singaporean government has implemented various measures to control speculative buying and maintain a steady real estate market. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign investors and individuals purchasing multiple properties. While these measures may affect the immediate profitability of condo investments, they also contribute to the overall stability of the market, making it a more secure environment for investors. It is important to note that there are several Singapore projects that comply with these measures and offer attractive investment opportunities. As such, potential condo investors should carefully consider the government’s cooling measures and their long-term impact on the market before making any investment decisions.
In recent news, Cover Projects was awarded the tender to develop a heritage building at 26 Evans Road, located near Golden Mile Tower. The most recent attempt to sell Golden Mile Tower collectively was made in August last year, with a reserve price of $556 million. This was the third collective sale attempt by the owners of the 99-year leasehold development.
According to Anna Tan, the business development director at Tag Realty, which is the marketing agent for the collective sale of Golden Mile Tower, the reserve price for the 99-year leasehold development has remained unchanged. This would translate to a land rate of $1,350, including the cost of renewing the land tenure but not taking into account any land betterment charges.
“The increase in building height under the voluntary conservation option presents opportunities for developers to transform the property into an iconic landmark on the city skyline. It also means that the new development could potentially feature 5m floor-to-ceiling heights for commercial and hotel spaces, while residential units could offer 3.6m ceiling heights,” says Tan.
With the recent gazetting of the neighbouring Golden Mile Complex as Golden Mile Singapore, this approval for voluntary conservation of Golden Mile Tower is particularly significant. Golden Mile Singapore, which is a joint development by Perennial Holdings and Far East Organization, launched its commercial units in December last year. The new residential units, housed within a 45-storey tower, are expected to be launched in the current quarter.
“This presents a rare opportunity to redevelop Golden Mile Tower, especially considering the limited land supply along Beach Road and the boost in property values due to initiatives such as the launch of Golden Mile Singapore and the neighbouring Kallang Alive masterplan,” adds Tan.
She goes on to say that the redevelopment of Golden Mile Tower presents a unique opportunity to create a brand-new mixed-use development in a highly sought-after location along Beach Road. The heritage of the building and its potential for the future make it an attractive investment choice for both local and international investors.