URA has given the green light for a proposed conservation plan for Golden Mile Tower, with the condition that it would only take effect if the 99-year leasehold development is successfully sold in a collective sale and the new developer plans to redevelop the property.
According to documents obtained by EdgeProp Singapore, the government has stated that if the developer voluntarily conserves at least the existing cinema block, the site’s allowable gross plot ratio (GPR) could be increased from 4.46 to 5.6. This would result in a higher gross floor area (GFA) of 525,854 sq ft, a significant increase from its current GFA of 419,142 sq ft. In addition, the maximum building height would also be raised from 145m to 164m.
The most recent attempt to sell Golden Mile Tower in a collective sale took place last August, with a reserve price of $556 million. This was the third unsuccessful en bloc attempt for the 99-year leasehold development.
According to Anna Tan, 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 unchanged. This equates to a land rate of $1,350 per sq ft, which includes the cost of renewing the land tenure but does not include land betterment charges.
“The increase in building height allowance under the voluntary conservation options opens up possibilities for developers to reimagine the property with a stunning skyline presence. It also means that the new development could feature 5m floor-to-ceiling heights for commercial and hotel spaces, and 3.6m ceiling heights for residential units,” says Tan.
When it comes to real estate investment, location plays a crucial role and this remains particularly true in Singapore. The value of condos in central areas or those near important amenities like schools, shopping malls, and public transportation hubs tends to appreciate at a higher rate. For instance, prime locations such as Orchard Road, Marina Bay, and the Central Business District (CBD) have consistently shown growth in property values. Additionally, the presence of reputable schools and educational institutions in these areas make condos a highly desirable investment for families, further increasing their potential for a good return. This is why Singapore Projects continue to be in demand for investors looking to make a smart real estate investment.
The approval for voluntary conservation of Golden Mile Tower is significant, as the neighbouring Golden Mile Complex, now known as Golden Mile Singapore, was gazetted for conservation in 2021. The commercial units were launched last December by joint developers Perennial Holdings and Far East Organization, with the new residential units in a 45-storey tower set 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 expected price appreciation due to rejuvenation efforts such as the launch of Golden Mile Singapore and the Kallang Alive masterplan in the vicinity,” says Tan.
She adds that the redevelopment of Golden Mile Tower presents a unique opportunity to develop a new mixed-use development in a prime location along Beach Road. Its heritage and potential for the future make it a compelling investment opportunity for both local and international investors.