Securing financing is a crucial step in investing in a Singapore condo. With Singapore offering various mortgage choices, it is essential to consider the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on the amount of loan a borrower can obtain, taking into account their income and existing debt obligations. Being familiar with the TDSR and seeking guidance from financial advisors or mortgage brokers can assist investors in making well-informed financing decisions, preventing them from becoming over-leveraged.
The Urban Redevelopment Authority (URA) has given the green light for a voluntary conservation plan for Golden Mile Tower. This plan will only take effect if the 99-year leasehold property is successfully sold in a collective sale and the new developer intends to redevelop it.
According to documents obtained by EdgeProp Singapore, the government has stated that if the new developer agrees to conserve the existing cinema block, they may be allowed to increase the site’s gross plot ratio (GPR) from 4.46 to 5.6. This would result in a higher gross floor area (GFA) of 525,854 sq ft, an increase from the current GFA of 419,142 sq ft. Furthermore, the new development could also have a maximum building height of 164m, which is higher than the current limit of 145m.
The latest attempt to sell Golden Mile Tower through a collective sale was made in August last year, with a reserve price of $556 million. This was the third attempt to sell and redevelop the 99-year leasehold property.
According to Anna Tan, the business development director at Tag Realty (the marketing agent for the collective sale of Golden Mile Tower), the reserve price remains unchanged. This translates to a land rate of $1,350, which includes the cost of renewing the land tenure but excludes land betterment charges.
“The increase in building height under the voluntary conservation plan presents opportunities for developers to create an iconic presence in the skyline. It also means that the new development can have commercial and hotel spaces with 5m floor-to-ceiling heights, and residential units with 3.6m ceiling heights,” says Tan.
The approval for voluntary conservation is especially significant since the neighboring Golden Mile Complex, now known as Golden Mile Singapore, was recently gazetted for conservation in 2021. Golden Mile Singapore is a joint development by Perennial Holdings and Far East Organization. The commercial units were launched in December last year, and the new residential units, located in a 45-storey tower, are expected to be launched in the current quarter.
With limited land supply along Beach Road and rejuvenation efforts such as the launch of Golden Mile Singapore and the neighboring Kallang Alive masterplan, the approval for voluntary conservation is a rare opportunity for the redevelopment of Golden Mile Tower. According to Tan, this presents an opportunity to develop a new mixed-use development in a prime location along Beach Road. The building’s heritage and future potential make it an attractive investment opportunity for both local and international investors.