United House up for sale at S$166 million
The tender for the building in the Orchard Road area will close on Nov 14
UNITED House, located just behind Concorde Hotel and Shopping Centre which is also on the market, has been launched for sale via tender for S$166 million.
This translates to a land rate of S$3,025 per square foot per plot ratio (psf ppr) assuming the building is redeveloped for commercial use. If redeveloped for hotel use, the land rate would be S$3,318 psf ppr.
The freehold Orchard Road site has a land area of about 1,192.7 square metres. Under the Urban Redevelopment Authority’s Master Plan 2019, the site is zoned for commercial use, with a plot ratio of 4.9.
The site can be redeveloped into a 10-storey commercial building with a gross floor area of up to 62,900 square feet (sq ft), said Swee Shou Fern, head of investment advisory at Edmund Tie, the marketing agent.
Owners have submitted a planning application for change of use from Commercial to Hotel use for the site.
“Given its prime location in Orchard Road (which is) popular with tourists, the property is ideal for redevelopment into a hotel,” Swee said.
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“Investors can also consider seeking bonus plot ratio under the Strategic Development Incentive (SDI) scheme by redeveloping United House and its neighbours together, subject to planning approval.”
Concorde Hotel and Shopping Centre is currently also on the market at a guide price of S$820 million, or S$1,801 psf ppr. The mixed-use development is majority-owned by Ong Beng Seng’s Hotel Properties Limited (HPL). The tender for Concorde will close on Oct 16.
“As United House falls outside the areas where new strata subdivision of commercial space is restricted, the buyer has the flexibility to consider strata subdivision for the new development,” Swee added.
In September, two strata-titled office floors in Tong Building were sold for S$68.5 million, or S$4,988 psf, to The Hour Glass. Another floor – Level 6 – in the building was sold to Parkway Hospitals Singapore for S$31.33 million, or S$4,562 psf.
This is the first time that United House has achieved the 80 per cent consent needed from owners to launch a collective sale, following three earlier attempts.
United House was first put up for sale in 1989 by UOL and was sold in 1990 for S$30.6 million or S$900 psf to Hong Kong-based First Pacific Land, which had ties to Indonesian businessman Liem Sioe Liong.
Barely a year later, First Pacific put the property up for sale. According to media reports then, marketing consultant Jones Lang Wootton was instructed to sell the five-storey property en bloc or on a floor-by-floor basis.
The most recent unit sold at United House was a 570 sq ft unit which changed hands for S$983,888, or S$1,725 psf, in October 2023. In September 2022, a 517 sq ft unit was sold for S$1.39 million, or S$2,690 psf.
In August, HPL obtained approval under the SDI scheme to redevelop The Forum mall, voco Orchard Singapore and HPL House into a mixed-use development with hotel, retail, office and residential space.
The tender for United House will close at 3 pm on Nov 14.
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