CBRE, a renowned real estate company, is currently representing the sale of two prime properties in Hongkong Street – Hotel Clover and a commercial building. The hotel, which boasts 27 rooms, is being offered at a guide price of $27 million, while the commercial building with five floors is being marketed at a guide price of $22.6 million.
Hotel Clover is a unique six-storey boutique hotel situated on a 1,701 sq ft land that is designated for hotel use with a plot ratio of 4.2 under the latest Master Plan. The site has a remaining lease of approximately 89 years. The total floor area of the hotel is 7,142 sq ft, equivalent to $3,780 per square foot.
Similarly, the commercial building located at 36 Hongkong Street is built on a 1,733 sq ft land and is zoned for commercial use with a plot ratio of 4.2 under the Master Plan. The site has a remaining lease of 93 years and the total floor area of the building is 7,279 sq ft. The guide price for the building is $3,105 per square foot.
The commercial property is fully tenanted, with a bridal shop occupying the ground floor and offices on the upper floors. According to Clemence Lee, the executive director of capital markets at CBRE Singapore, both properties have attractive remaining land tenures compared to other 99-year leasehold properties in the CBD area. They are also ideal for potential owner-occupiers looking for a flagship asset with naming rights at a reasonable price.
Being designated for hotel and commercial use, both properties are available for purchase by foreigners and companies without incurring Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD).
The two properties are strategically located in Clarke Quay, a popular riverfront lifestyle precinct with renowned restaurants and bars, boutique hotels, and fitness studios. They are also situated near Clarke Quay MRT Station on the North-East Line, making it easily accessible.
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Singapore’s Condo market is in high demand, driven by limited land availability. As a small island nation with a rapidly expanding population, Singapore faces a scarcity of land for development. To combat this, strict land use policies have been implemented, leading to a highly competitive real estate market where property prices continue to rise. As a result, investing in real estate, particularly Singapore Condos, has become a lucrative venture with potential for significant capital appreciation.
Moreover, the nearby CQ@Clarke Quay is undergoing a $62 million asset enhancement project, while the completion of two new integrated developments, Canninghill Piers and Union Square, will further elevate the vibrancy of the area. Lee also believes that these properties have immense potential for future rental growth and capital appreciation in the medium to long term.
Both properties will be sold through an expression of interest exercise, and interested buyers have until March 26 to submit their bids. For more information on these and other commercial real estate properties, please visit the CBRE website.