The prime freehold site at 315 Outram Road, currently home to the Tan Boon Liat Building, has been put up for collective sale at a reserve price of $1.15 billion. With the Urban Redevelopment Authority (URA) expressing conditional support for rezoning the site from Business 1 to residential with commercial use, the potential for a landmark mixed-use development in this city-fringe location is significant. If a successful bid were to materialise and plans were approved, this could mark a major transformation for the Outram area, injecting new vibrancy and economic activity.
In this article, we will explore the details of the potential en bloc sale, examine Outram estate’s appeal, and highlight nearby mixed-use developments that have set a precedent for success. We will also discuss why the demand for mixed-use projects remains strong and how this site could play a pivotal role in shaping the district’s future.
Prime Freehold Site with 50% GFA Boost: Is This the Next Landmark Development?
The Tan Boon Liat Building, a longstanding industrial and showroom space at the intersection of Outram Road and Zion Road, is being marketed for collective sale by Cushman & Wakefield. The proposed rezoning, as indicated in URA’s outline planning advice, would allow the site to increase its gross floor area (GFA) by 50%, with a revised plot ratio of 4.9.
According to URA guidelines, a plot ratio exceeding 2.8 typically corresponds to a building height of more than 36 storeys. Therefore, with a revised plot ratio of 4.9, the site could potentially accommodate a high-rise development exceeding 36 storeys, subject to specific planning approvals and technical height controls. This opens up opportunities for a high-rise residential project complemented by commercial elements on the first storey.
Given its freehold status and prime location, the site presents an attractive proposition for developers looking to create a dynamic mixed-use development. However, any prospective buyer would need to factor in the estimated $830 million to $840 million in Land Betterment Charges (LBC)—a levy imposed when a site’s land use or plot ratio is enhanced, reflecting the increase in land value due to the change. Additionally, buyers would need to consider bonus GFA costs and acquiring remnant land.
Why Outram’s Strategic Location Makes It a Magnet for Investors
Outram is a sought-after district that bridges Singapore’s Central Business District (CBD) and mature residential neighbourhoods. Its strategic location ensures excellent connectivity, with the nearby Havelock MRT station providing seamless access via the Thomson-East Coast Line. The area is also within close proximity to lifestyle hotspots such as Robertson Quay, Great World, and Chinatown, offering a mix of dining, retail, and entertainment options.
Additionally, Outram’s appeal extends to its proximity to key employment hubs. The medical precinct anchored by the Singapore General Hospital (SGH) Campus Redevelopment is set to become the country’s largest medical hub, further enhancing the area’s desirability for residential and commercial developments.
How Mixed-Use Developments Are Shaping Singapore’s Urban Landscape
The potential transformation of the Tan Boon Liat Building site into a mixed-use development would align well with the surrounding urban landscape, which already features several successful mixed-use developments:
Avenue South Residence (Silat Avenue, District 3)
A major mixed-use development comprising 1,125 residential units and 450 serviced commercial units, capitalising on its city-fringe location and connectivity. At its launch on 7 September 2019, the project attracted a strong response, with around 90% of the 300 units released sold on the first day.
Duo Residences (Bugis, District 7)
A prominent mixed-use twin-tower development with residential units, office spaces, a hotel, and retail, setting a benchmark for city-centre integrated developments. Launched in November 2013, Duo Residences saw 468 units, or 71%, taken up within the first three days of launch, with an average transacted price of $1,987 per square foot.
Marina Bay Residences (Marina Boulevard)
Part of Singapore’s financial hub, Marina Bay Residences is a high-end mixed-use development that integrates luxury residences with commercial and office spaces. When launched in December 2006, the project saw an overwhelming response, with all 428 units snapped up within three days at an average price of $1,850 per square foot—highlighting the strong demand for mixed-use developments in prime locations.
Marina Bay Suites (Central Boulevard, District 1)
Marina Bay Suites, a luxury residential component of the Marina Bay Financial Centre, comprises 221 units and was launched in December 2009. While specific take-up rates during the initial launch period are not readily available, reports indicate that as of March 2015, approximately 10% of the units remained available for sale, suggesting a take-up rate of around 90% over the years following its launch.
The M (Middle Road, District 7)
A lifestyle-driven mixed-use development that enhances the urban fabric of Bugis and Rochor. During its launch on 22 February 2020, over 70% of its units were sold over the weekend, demonstrating robust demand for well-located mixed-use projects.
These developments exemplify the strong market demand for integrated living spaces that offer convenience and accessibility, underscoring the potential success of a similar project at the Tan Boon Liat Building site.
The Rise of Integrated Living: Why Demand for Mixed-Use Spaces Is Growing
Mixed-use developments continue to gain traction as they offer an integrated living experience that aligns with the evolving preferences of urban dwellers. The ability to live, work, and socialise within a single development enhances convenience and adds long-term value to both residents and investors. Given Outram’s strong transport links, proximity to business districts, and thriving lifestyle scene, a mixed-use development at the Tan Boon Liat Building site would be well-positioned to attract strong demand.
In Conclusion
The potential collective sale of the Tan Boon Liat Building presents a rare opportunity to redefine Outram’s urban landscape. If successfully transacted and approved for mixed-use development, the site has the potential to become a landmark project that enhances the area’s liveability and economic dynamism. With a proven track record of successful mixed-use developments nearby, this transformation could further cement Outram’s position as a highly desirable city-fringe district.
