Noel Building

The Noel Building at 50 Playfair Road was sold for $81.18 million, a little more than a month after it was placed up for auction. When the eight-story building was put up for sale last month, marketing firm Edmund Tie & Co. suggested a guiding price of $70 million. The transaction price is 17% more than that amount.

The 26,792 square foot freehold property, which is situated at the intersection of Playfair Road and Harper Road, is zoned for “Business 1-White” usage, which is “very uncommon,” according to Swee Shou Fern, head of investment advising at Edmund Tie & Co., who mediated the sale. The land can be built into a new building with a maximum gross floor area of 93,771 square feet and a plot ratio of 3.5. As a result, the $81.18 million acquisition price equals $895 psf per plot ratio.

Rumor has it that at the close of the tender, ten bids were received. “Developers, end users, and investors, both domestically and internationally, showed huge interest in the site, which was highly contested,” adds Swee. “While owner-occupiers were trying to develop the property for their corporate headquarters, some developers were exploring to redevelop the site for food-factory usage or a mixed industrial development with a commercial component.”

The Playfair Road building is part of the Tai Seng Business Hub, which is 400 meters from the Tai Seng MRT station and features notable buildings including the Grantral Mall @ MacPherson, BreadTalk IHQ, and 18 Tai Seng, along with food and beverage, banking, and leisure amenities.

The owners of the strata-titled building at Playfair Road anticipate receiving gross sale earnings per unit ranging from S$1.65 million to S$6.22 million.

The favorable outcome of the tender indicates the investors’ continued strong faith in the Singapore real estate market, especially for homes with solid features, according to Swee.

Edmund Tie mediated the third collective sale in 2023, which is the most recent transaction. The company sold Meyer Park to a joint venture between UOL Group and Singapore Land Group in February for $392.18 million which will be rebuild to Meyer Blue. Then, for $67 million, it sold the GS Building on Lorong Ampas to boutique developer JVA Venture.