THE rejuvenation of Tanjong Pagar, right on the doorstep of the Central Business District (CBD),

THE rejuvenation of Tanjong Pagar, right on the doorstep of the Central Business District (CBD), is gathering steam, with a new residential site launched for sale yesterday.

It could feature one of only a few new condominiums to be built downtown for the next two to three years, property watchers say.

The 0.3ha land parcel in Enggor Street, behind Far East Organization’s Icon condominium, is earmarked for a residential development with shops on the first floor.

Right next door is another residential plot, of 0.28ha, which will be put up for tender later this month.

The release of these two sites comes after four other plots in the vicinity were sold over the past few months.

These are two office sites along Anson Road - on either side of Gopeng Street - and two hotel sites between Tanjong Pagar Road and Tras Street, near Amara Hotel.

A seventh plot, at Bernam Street opposite Fuji Xerox Tower, will be made available in December.

Together, these upcoming developments will inject more life and add more definition to Tanjong Pagar. The site released yesterday can host a 50-storey condominium. Similarly, 50-storey buildings can be built on the office plots.

Of the two hotel sites, one can be built up to 30 storeys while the other can accommodate a building of up to 20 storeys.

With the release of the new residential sites in Enggor Street, more inner-city dwellers will also be drawn into the neighbourhood, said property consultants.

Currently, the only two residential projects in the immediate area are Icon and Lumiere, which sits on the former HMC Building in Parsi Road.

Developers and investors keen on the city-living concept may be particularly interested in the two new sites, because the Government recently stopped allowing the conversion of office buildings to homes in the CBD.

This means that the two residential plots in Enggor Street are part of the few possibilities for a condominium downtown until at least end-2009.

Other options are the ‘white’ sites in the Marina area, which can host some homes.This policy may be what the Government is banking on to offload the Enggor Street sites, which have been sitting on its reserve list for land sales for at least four years with no takers.

The two were offered as a single parcel until late last year, when they were divided to make them more attractive. In June, the two sites were transferred to the confirmed list to be put up for sale at a fixed date regardless of bidder interest.

The site put up for public tender yesterday has a 99-year lease and can be built up to 274,523 sq ft of gross floor area. A condominium with about 255 units can be built on the plot.

A development on the parcel ‘will be attractive to urbanites working in the CBD’, said Mr Li Hiaw Ho, executive director at property consultancy CB Richard Ellis.

‘Investors are likely to benefit from the pool of expatriates looking to rent homes in the CBD,’ he added.

He expects the site to fetch $180 million to $200 million, or $655 to $715 per sq ft (psf) per plot ratio.

Based on this, the finished units could be launched for sale at $1,300 to $1,400 psf, he said.

Recent transactions at the Icon have ranged from $1,250 to $1,928 psf. The last recorded sale of a Lumiere unit was in May, for $1,602 psf.

Source : Straits Times - 05 Sep 2007