The Tan Boon Liat Building, a cornerstone of Singapore’s furniture and design scene, has officially relaunched its collective sale tender with a revised reserve price of $1 billion. This move comes after its initial attempt in early 2025 at $1.15 billion failed to secure a buyer, representing a strategic 13% price reduction. Marketing agent Cushman & Wakefield noted that the new price tag translates to a land rate of approximately $1,757 per square foot per plot ratio (psf ppr), a more palatable figure for developers navigating a cautious high-interest-rate environment.
The 15-storey freehold landmark at 315 Outram Road sits on a sprawling 175,655 sq ft site that currently holds a “Business 1″ industrial zoning. However, the true allure for investors lies in the Urban Redevelopment Authority’s (URA) indicated support for rezoning the plot to “Residential with Commercial at the 1st Storey.” Such a transformation would allow for a significant plot ratio increase from 3.1 to 4.9, effectively granting a 50% uplift in gross floor area (GFA). This potential would allow a developer to replace the aging industrial block with a high-rise luxury residential project, potentially reaching up to 36 storeys.
Strategically located at the intersection of Outram Road and Zion Road, the building enjoys unparalleled connectivity, sitting directly atop the Havelock MRT station on the Thomson-East Coast Line. The surrounding neighborhood has already seen a shift from its industrial roots toward a more sophisticated lifestyle and residential hub. Successful nearby launches like Zyon Grand and Promenade Peak have demonstrated robust demand for city-fringe living, with units transacting at median prices near $3,000 psf, providing a strong precedent for the redevelopment of the Tan Boon Liat site.
Despite its residential future, the building currently exists within an active industrial and commercial corridor. Nearby, industrial properties such as those in the Alexandra and Bukit Merah clusters—including the likes of 243 Alexandra Road and various Mapletree industrial assets—continue to serve the city’s light manufacturing and logistics needs. The proximity to these B1 industrial zones has historically provided a unique synergy for Tan Boon Liat, allowing it to function as a “furniture hub” where wholesalers could operate showrooms close to the central business district.
The decision to lower the reserve price highlights the current “wait-and-see” sentiment in the collective sale market. While the site does not incur Additional Buyer’s Stamp Duty (ABSD) on the initial purchase due to its current industrial status, the total acquisition cost—including the Land Betterment Charge for rezoning—still represents a multi-billion dollar commitment. Developers are becoming increasingly selective, preferring sites with clear rezoning potential and “safe-haven” attributes, which the freehold tenure and prime District 3 location of Tan Boon Liat provide.
As the tender is set to close on May 12, 2026, all eyes are on whether this billion-dollar “discount” will be enough to trigger a deal. If successful, the departure of the Tan Boon Liat Building would mark the end of an era for Singapore’s interior design enthusiasts, who have long frequented its corridors for eclectic home decor. For the city, however, it would signify another step in the continuous rejuvenation of the Outram-Havelock precinct into a premier urban residential destination.
