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SINGAPORE: Provider Mediacorp, Singapore’s national media network, has offered for sale the site that previously housed the Caldecott Broadcast Center on Andrew Road. The hilltop site spans 752,015 square feet and served as a broadcast hub for more than six decades until 2015, when Mediacorp moved to its current location in Mediapolis.
Mediacorp has appointed real estate consultants – CBRE and Showsuite Consultancy – to advise and market the property. The property will be sold through a public tender that will close on December 9.
The 99 year lease island site currently has a 73 year lease term and is zoned as a ‘Civic and Community Institution’ in the 2019 Master Plan. Located in the heart of the good class bungalow area (GCB) of Caldecott Hill, the Urban Redevelopment Authority (URA) granted Mediacorp a scheme approval for a proposed site redevelopment into two-story bungalows with a minimum land area of 800 square meters per home.
An outline defines the 7ha Andrew Road site.
Mediacorp appointed an architect who drew up a subdivision scheme for the site, with 67 lots of bungalows, subject to approval by authorities.
Showsuite Consultancy CEO Mr. Karamjit Singh said: “With the buildings vacated, the land is now ready to be remodeled and harmonized with the immediate surroundings of elegant single-family homes. These ‘junior GCBs’ are perfectly suited to the mid-level segment of neglected single-family homes – the market between GCBs and entry-level bungalows. 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. More than 10,000 years ago 25 years ago and it is still 10,000 more today. This represents less than 1% of the total housing stock in the country. During the same period, average household net wealth increased by more than 300%, ”Singh continued.
The gross land value for a proposed bungalow remodel at the site is expected to exceed S $ 400 million, including a differential premium and a lease improvement premium, which would translate into a land fee in the S region. $ 540 per square foot (psf).
Based on the architect’s scheme of the 67 bungalow seller, this would result in a land cost of around S $ 6 million per lot. At this price, a developer can break even between S $ 9 and S $ 10 million per bungalow.
New single-family homes in the proposed development are expected to be priced between $ 11 million and $ 14 million, subject to design and setup.
An application has been submitted to the Singapore Land Authority (SLA) for approval in principle for the lease to be extended to a new 99-year lease.
Mr. Michael Tay, Director of Capital Markets, Singapore at CBRE, added: “The perception of leaseholding has been changing over the years. In a market where freehold equity values are high, there is a growing generation of buyers who see more affordable rental properties as an opportunity to lock up less equity for their homes, while achieving their aspirational goals. By doing so, they free up capital to invest in another property for rental income. “
Tay said: “We are optimistic that the developers will be excited about this opportunity as the proposed ‘GCB-junior’ project will attract buyers and upgraders looking for bungalow ownership within a new property, with the added advantage of being part of an established GCB area “.
“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,” Tay added.
