Singapore’s iconic Tan Boon Liat Building, a 15-storey freehold industrial property located at 315 Outram Road, has entered the collective sale market with an ambitious reserve price of S$1.15 billion, but failed to attract any bids by the tender closing date of March 18, 2025.
The tender, which opened on February 3, has now moved to private treaty negotiations, signaling potential challenges in the high-value property market despite the building’s prime location minutes from the Central Business District.
Despite the prime location, market caution prevails as negotiations shift to private treaty after the tender’s unsuccessful conclusion.
Built in 1976 and recognized as one of Singapore’s earliest high-rise industrial buildings, the Tan Boon Liat Building occupies a substantial land area of 13,104 square meters with a Gross Floor Area of 52,370 square meters.
The property, primarily zoned for Light Industrial (B1) usage, offers significant redevelopment potential with parking capacity for up to 450 vehicles and proximity to Outram and Tiong Bahru MRT stations, enhancing its accessibility alongside connections to the CTE and AYE expressways.
Developers evaluating the property face substantial financial considerations beyond the reserve price, with land betterment charges estimated between S$830-840 million, potentially pushing the total investment close to S$2 billion before construction costs.
This positions the sale among Singapore’s most significant collective sale attempts, comparable to recent transactions including the S$1.1 billion Zion Road Parcel A sale in April 2024 and the S$1.03 billion Marina Gardens Lane site in July 2023.
Industry analysts attribute the lack of bids to challenging market conditions for large-scale developments, particularly those requiring investments exceeding the billion-dollar threshold.
The Urban Redevelopment Authority is expected to support potential rezoning for residential use, which could enhance the property’s appeal for mixed-use development scenarios.
The site’s location within the historically rich Tiong Bahru estate makes it particularly attractive for developers looking to capitalize on the area’s blend of heritage and modern urban living.
While owners stand to receive substantial returns if a sale materializes through private treaty negotiations, the absence of bids at the tender closing demonstrates current market caution toward high-value property investments, potentially influencing price adjustments or deal restructuring in subsequent discussions. This cautious approach aligns with broader market projections showing a modest Price Index growth of only 1-2% for the coming year.
As CEO of OrangeTee & Tie Justin Quek highlighted, the development represents a significant investment risk even for major developer consortiums.
