Roxy Square, a freehold mixed-use development situated in Katong, is gearing up for collective sale with the help of marketing agent JLL, according to a press release. The development includes 296 shops, 26 apartments, and the 576-room Grand Mercure Roxy Hotel, and was initially launched for tender last July at a minimum price of $1.25 billion. However, due to the current market conditions, owners are in the process of signing a supplemental agreement to lower the collective sale price by 10.8% to $1.115 billion, requiring the support of at least 80% of the owners.
The development is expected to yield a unit land rate of $1,852 per square foot per plot ratio (psf ppr) under the new price, which includes a Land Betterment Charge (LBC) at the gross plot ratio of approximately 3.86. Accounting for an additional 10% bonus gross floor area (GFA) for the residential component and the LBC, the land rate would be $1,804 psf ppr, according to JLL.
Tan Hong Boon, JLL Singapore’s executive director of capital markets, says that the current private residential market in Katong has strong underlying support. Recent launches like Meyer Blue and Emerald of Katong have shown impressive sales, instilling confidence in developers for Roxy Square’s potential. He also states that the development’s appeal is further enhanced by its prime location next to Marine Parade MRT Station (Thomson-East Coast Line), with a direct underground connection. Additionally, the freehold tenure, well-loved heritage locale, and excellent connectivity to amenities make it a highly desirable site.
Completed in 1996, Roxy Square has a gross floor area (GFA) of 668,000 sq ft. Under the 2019 Master Plan, the development 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. JLL received recent planning advice from the URA, stating that the entire site can be rezoned for commercial and residential use and redeveloped into a high-rise mixed-use development with a height of up to 75m.
According to JLL, 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.
Tan adds that the proposed reduction in reserve price, if supported by the majority owners, will enhance the site’s appeal, especially considering the consistent demand for quality residences in the area. This collective sale aims to thoughtfully shape a vital part of Singapore’s East Coast for the future.
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Condo investment in Singapore holds considerable weight, given the government’s implementation of property cooling measures. Singapore’s leadership has continuously introduced policies aimed at deterring speculative buying and promoting a steady real estate market. The measures, such as the Additional Buyer’s Stamp Duty (ABSD), impose higher taxes on foreign buyers and individuals purchasing multiple properties. Although these measures may initially affect the profitability of condo investments, they also contribute to the market’s long-term stability, creating a secure investment environment. Additionally, Condos remain a solid option for investment in Singapore’s real estate market.
The tender for Roxy Square closes on Feb 18 at 3pm.