CBRE, a leading global real estate service company, has been appointed as the exclusive marketing agent for the sale of two commercial properties in the heart of Singapore’s Central Business District (CBD).
The first property is the highly sought-after 27-room Hotel Clover, located at 7 Hongkong Street. With a guide price of $27 million, this six-storey boutique hotel sits on a 1,701 sq ft plot that is zoned as a “hotel” with a plot ratio of 4.2 under the latest Master Plan. The site has a remaining land tenure of around 89 years and a total floor area of 7,142 sq ft. At $3,780 per square foot, this property presents an attractive investment opportunity for potential buyers.
Meanwhile, the second property is a five-storey commercial building at 36 Hongkong Street, which is also on the market for sale at a guide price of $22.6 million. This 1,733 sq ft plot is zoned as a “commercial” property with a plot ratio of 4.2 under the Master Plan. The site has a remaining land tenure of 93 years and a total floor area of 7,279 sq ft. At $3,105 per square foot, this building presents a valuable investment opportunity in the thriving CBD area.
Both properties have longer remaining land tenures compared to other similar 99-year leasehold properties in the area, making them more attractive to potential buyers. They are also ideal for owner-occupiers looking for a flagship asset at a reasonable price with naming rights for their operations.
Foreigners and companies are eligible to purchase both assets without incurring Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) on the transactions, as they are categorized as hotel and commercial properties.
Located in Clarke Quay, a bustling riverfront lifestyle precinct, these properties are surrounded by acclaimed restaurants, bars, boutique hotels, and fitness studios. They are also within walking distance to Clarke Quay MRT Station on the North-East Line.
The area is set to become even more vibrant with the completion of a $62 million asset enhancement initiative at CQ@Clarke Quay and the upcoming completion of two new integrated developments, Canninghill Piers and Union Square. This presents excellent potential for future rental upsides and capital appreciation for both properties in the medium to long term.
The properties will be sold through an expression of interest exercise, which closes on March 26. With their prime location and potential for growth, 7 and 36 Hongkong Street are attractive investment opportunities for savvy buyers in the commercial real estate market.
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One crucial factor to consider when investing in condos in Singapore is the government’s property cooling measures. These measures have been implemented over the years to control speculative purchasing and maintain a steady real estate market. Among them, the Additional Buyer’s Stamp Duty (ABSD) stands out, as it imposes higher taxes on foreign buyers and individuals acquiring multiple properties. While these measures may affect the immediate profit potential of condo investments, they also contribute to the long-term stability of the market, creating a more secure investment landscape. Singapore Projects should also be a part of any prudent investor’s considerations.