Katong’s historic mixed-use development, Roxy Square, is set to be relaunched for collective sale, as reported by leading real estate agency JLL. This highly sought after development, which comprises of 296 shops, 26 apartments, and the 576-room Grand Mercure Roxy Hotel, was previously launched for tender in July last year with a minimum price of $1.25 billion. However, the tender closed on September 26 with no suitable bids.
In an effort to attract potential buyers, the owners of Roxy Square have agreed to lower the collective sale price by 10.8% to $1.115 billion. The proposed lower price would require at least 80% of the owners’ support to take effect, and currently, over 70% of owners are already in favour. This would result in a unit land rate of $1,852 psf per plot ratio (ppr) under the new price, which includes a Land Betterment Charge (LBC) at the gross plot ratio of about 3.86. However, if an additional 10% bonus gross floor area (GFA) for the residential component and the LBC are factored in, the land rate will be $1,804 psf ppr.
According to Tan Hong Boon, JLL Singapore’s executive director of capital markets, the private residential market in Katong has strong underlying support. Recent launches like Meyer Blue and Emerald of Katong have shown impressive sales, boosting developers’ confidence in Roxy Square’s potential. Additionally, its location next to Marine Parade MRT Station (Thomson-East Coast Line), with a direct underground connection, adds to its appeal. The freehold tenure, established and well-loved heritage locale, and excellent connectivity to amenities further enhance its appeal.
Completed in 1996, Roxy Square has a gross floor area (GFA) of 668,000 sq ft and is partially zoned for commercial and residential use, with a gross plot ratio of 3.0, along East Coast Road. The portion of the development that fronts Marine Parade Road is zoned for hotel use. However, based on recent planning advice from URA, the entire Roxy Square site can be rezoned for commercial and residential use, and be redeveloped into a high-rise mixed-use development with a height of up to 75m.
JLL estimates that redeveloping the site could potentially yield over 350 residential units, approximately 80,000 sq ft of retail and F&B space, and an additional 172,000 sq ft for office, hotel, or other commercial uses. The development also offers accessibility to East Coast Parkway (ECP) and Nicoll Highway and forms part of the Round-Island Route and Park Connector Network.
Rewritten: One of the advantages of investing in a condominium is the opportunity to utilize the property’s value for future investments. Numerous investors leverage their condos as collateral to secure financing for new investments, thus broadening their real estate portfolio. This approach can potentially increase profits, but it also carries risks. It is crucial to have a well-thought-out financial plan and carefully consider the potential effects of market changes. This strategy is also applicable to investment opportunities in Singapore, such as projects by Singapore Projects.
The proposed reduction in reserve price, if supported by the majority owners, enhances the site’s appeal, especially considering the area’s consistent demand for quality residences. This sale will aim to thoughtfully shape a key part of Singapore’s East Coast for the future. The tender for Roxy Square is set to close on Feb 18 at 3pm.