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Mediacorp has finally put up for sale the sprawling site that previously housed the Caldecott Broadcast Center on Andrew Road.
The sale, through a public contest, will close on December 9.
At 752,015 square feet, the site served as a broadcast hub for more than six decades until 2015, when Mediacorp moved to Mediapolis in One-North.
The media organization received blanket approval from the Urban Redevelopment Authority (URA) to remodel the site, located in the Good Class Bungalow Area (GCB) of Caldecott Hill, into two-story bungalows with a minimum land area of 800 square meters per house. .
Appointed an architect to draw up a subdivision scheme for the 7ha site, with capacity for 67 bungalow plots, subject to approval.
GCBs are single-family homes located within one of 39 designated zones and have a minimum land area requirement of 1,400 square meters.
But there may be houses within these designated areas that do not meet the minimum size.
The site, currently zoned for use by civic and community institutions under the URA’s 2019 Master Plan, will have to be rezoned for residential use, which will involve the payment of a differential premium (DP) to the state.
The lease site currently has a 73-year lease term, which means the developer would also have to pay a Lease Enhancement Premium (UP) to the Singapore Land Authority in order for the lease to be extended to a new tenure. 99 years.
An application has been submitted for an approval in principle for the extension of the lease.
Karamjit Singh, CEO of Showsuite Consultancy, one of two consultants appointed to advise and market the property, said: “The gross land value for a proposed bungalow remodel at the site is expected to exceed $ 400 million, including DP and UP, which would translate into a land rate in the region of $ 540 per square foot. The net value of the land could exceed $ 260 million. “
Based on the proposed 67 bungalow scheme, the cost of the land would be approximately $ 6 million per parcel.
At this price, a developer can break even at around $ 9 million to $ 10 million per bungalow.
Single-family homes are expected to be priced between $ 11 million and $ 14 million, subject to design and setup.
“These ‘GCB juniors’ would cater to the underserved middle segment of single-family homes, the market between GCBs and entry-level bungalows,” Singh said.
“There has not been a large-scale project of new, junior or conventional GCBs for a long time.
The closest proxy would be the bungalows at Sentosa Cove, which were launched between 2005 and 2010. As a result, the number of single-family homes in Singapore has been stagnant for decades.
“It was more than 10,000 25 years ago and it is still 10,000 more today. This represents less than 1 percent of total homes in the country. During the same period, average household net wealth has increased by more than 300 percent.” Singh said. He said.
Michael Tay, Singapore’s head of capital markets at CBRE, the project’s other consultant, said: “There is a growing generation of buyers who see more affordable rental properties as an opportunity to tie less capital to their homes, while achieving your aspirational goals.
“By doing so, they free up capital to invest in another property for rental income.”
He added: “In addition to the potential for bungalow remodeling, we understand that URA may also be prepared to consider a proposal for the site to be remodeled into a retirement village, subject to a detailed evaluation.”
But Mr. Singh said: “Buyers wishing to convert the property into a retirement villa would have to consult and submit a proposal to the planning authorities.”
“That said, we believe the property is likely to be redeveloped into bungalows as there are more home developers than there are investors in retirement villas.”
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