Katong’s Roxy Square, a freehold mixed-use development, is set to be relaunched for collective sale, announced marketing agent JLL. The development, which comprises 296 shops, 26 apartments, and the 576-room Grand Mercure Roxy Hotel, was previously launched for tender last July with a minimum price of $1.25 billion. However, the tender closed on Sept 26 without any successful bids.
In response to the lack of bids, owners of the development are in the process of signing a supplemental agreement to lower the collective sale price by 10.8% to $1.115 billion. This proposed reduction in price would require at least 80% support from the owners. Currently, more than 70% of owners are in favour of the lower price.
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Under the revised price, the development is expected to have a unit land rate of $1,852 psf per plot ratio (ppr), which includes a Land Betterment Charge (LBC) at the gross plot ratio of about 3.86. With an additional 10% bonus gross floor area (GFA) for the residential component and the LBC factored in, the land rate would be $1,804 psf ppr, according to JLL.
According to Tan Hong Boon, JLL Singapore’s executive director of capital markets, the private residential market in Katong has shown strong underlying support. Recent launches in the area, such as Meyer Blue and Emerald of Katong, have achieved impressive sales, boosting developers’ confidence in Roxy Square’s potential. He also noted that the development’s location next to Marine Parade MRT Station (Thomson-East Coast Line) with a direct underground connection adds to its appeal.
Built in 1996, Roxy Square has a gross floor area (GFA) of 668,000 sq ft and is partially zoned for commercial and residential use under the 2019 Master Plan, with a gross plot ratio of 3.0 along East Coast Road. The part of the development facing Marine Parade Road is zoned for hotel use.
According to recent planning advice from URA, 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. JLL estimates that this 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 is part of the Round-Island Route and Park Connector Network.
Tan added that the proposed reduction in reserve price, if supported by the majority of owners, will further enhance the site’s appeal, given the consistent demand for quality residences in the area. He believes that this sale has the potential to shape a key part of East Coast for the future.
Interested buyers can submit their bids for Roxy Square by Feb 18 at 3pm. Property seekers can check out the latest listings for Roxy Square properties on Ask Buddy. For more information and statistics on the property market, they can also compare the price trends of new sale condos versus resale condos, and new sale condos versus executive condominiums. Additionally, they can also look at the landed transactions with the highest profits and the most unprofitable landed transactions in the past year, as well as the condo projects with the most expensive average PSF.