The Urban Redevelopment Authority (URA) has recently given their approval for a proposal to voluntarily conserve Golden Mile Tower. This would only come into effect if the 99-year leasehold development is successfully sold in a collective sale and the new developer plans to redevelop the property.
Based on documents obtained by EdgeProp Singapore, the government has stated that if the developer agrees to conserve at least the existing cinema block, they would consider increasing the site’s allowable gross plot ratio (GPR) from 4.46 to 5.6. This is based on the current site area of 93,902.5 square feet. The increase in GPR would also correspondingly boost the redevelopment’s allowable gross floor area (GFA) to 525,854 square feet, a significant increase from its current GFA of 419,142 square feet. Additionally, voluntary conservation would also allow for a higher maximum building height of 164 meters, up from the current limit of 145 meters for the site.
Last August, the owners of Golden Mile Tower attempted a collective sale with a reserve price of $556 million. This was the third attempt to sell and redevelop the 99-year leasehold development. According to Anna Tan, the business development director at Tag Realty (the marketing agent for the collective sale of Golden Mile Tower), the reserve price for the 99-year leasehold development remains the same. This translates to a land rate of $1,350, which includes the cost of renewing the land tenure but does not factor in any land betterment charges.
“The increase in building height limit under the voluntary conservation options creates new possibilities for developers to reimagine the property, giving it a striking presence in the skyline. It also means that commercial and hotel spaces in the new development could have 5-meter floor-to-ceiling heights, while residential units could offer 3.6-meter ceiling heights,” says Tan.
For international investors, it is crucial to have a thorough understanding of the regulations and limitations regarding property ownership in Singapore. While foreigners are granted the freedom to acquire condominiums with relatively few restrictions, purchasing landed properties comes with stricter ownership guidelines.
It is worth noting that foreign buyers are also subjected to Additional Buyer’s Stamp Duty (ABSD), which currently stands at 20% for their initial property purchase. Despite the added costs, the stability and potential for growth in Singapore’s real estate market continue to attract foreign investments. For more information on the latest condo developments, check out New Condo Launches.
The approval for voluntary conservation of Golden Mile Tower is significant, especially considering that the neighbouring Golden Mile Complex, now rebranded as Golden Mile Singapore, was gazetted for conservation in 2021. Golden Mile Singapore is a joint project between Perennial Holdings and Far East Organization. The commercial units were launched last December, while the new residential units, housed in a 45-story tower, are expected to be launched this quarter.
“This is a rare opportunity to redevelop Golden Mile Tower, given the limited land supply along Beach Road and the potential price appreciation due to ongoing rejuvenation efforts such as the launch of Golden Mile Singapore and the nearby Kallang Alive master plan,” says Tan.
She adds that the redevelopment of Golden Mile Tower presents an opportunity to develop a new mixed-use development in a prime location along Beach Road. The building’s heritage and potential for the future make it a unique investment opportunity for both local and international investors.