The freehold mixed-use development Roxy Square in Katong is set to be relaunched for collective sale, according to a press release by marketing agent JLL.
Located in the popular Katong district, Roxy Square comprises 296 shops, 26 apartments, and the 576-room Grand Mercure Roxy Hotel. It was first launched for tender in July 2019 with a minimum price of $1.25 billion, but the tender closed on Sept 26 with no successful bids.
But now, 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, according to JLL. This proposed lower price would require at least 80% of the owners’ support to take effect. Currently, over 70% of owners are in favour of the reduced price.
Under this new price, the unit land rate is expected to be $1,852 psf per plot ratio (ppr), including a Land Betterment Charge (LBC) at the gross plot ratio of about 3.86. If an additional 10% bonus gross floor area (GFA) for the residential component and the LBC are factored in, the land rate will be $1,804 psf ppr, says JLL.
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JLL Singapore’s executive director of capital markets, Tan Hong Boon, says that the private residential market in Katong has strong underlying support, with recent launches like Meyer Blue and Emerald of Katong showing impressive sales and boosting developers’ confidence in Roxy Square’s potential.
He adds that the development’s appeal is also enhanced by its location next to Marine Parade MRT Station (Thomson-East Coast Line), with a direct underground connection, as well as its freehold tenure, established and well-loved heritage locale, and excellent connectivity to amenities.
Completed in 1996, Roxy Square has a gross floor area (GFA) of 668,000 sq ft. The 2019 Master Plan partially zoned the development 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.
According to recent planning advice from URA, the entire Roxy Square site can be rezoned for commercial and residential use and be redeveloped into a high-rise mixed-use development with a height of up to 75m.
Redevelopment of 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, says JLL.
The development also offers easy accessibility to East Coast Parkway (ECP) and Nicoll Highway and forms part of the Round-Island Route and Park Connector Network.
Tan believes that the proposed reduction in reserve price, if supported by the majority owners, will enhance the site’s appeal, especially considering the area’s consistent demand for quality residences. This sale aims to thoughtfully shape a key part of Singapore’s East Coast for the future.
The tender for Roxy Square will close on Feb 18 at 3pm. Interested buyers can check out the latest listings for Roxy Square properties on Ask Buddy.