CBRE is the sole marketing agent for the 27-room Hotel Clover, located at 7 Hongkong Street. This boutique hotel is currently on the market with a guide price of $27 million. Along with this, CBRE is also responsible for the sale of a commercial building, situated at 36 Hongkong Street, which is going for a guide price of $22.6 million.
When considering investing in Singapore, it is crucial for international investors to be familiar with the regulations and limitations surrounding property ownership. Buying a condominium is generally less restricted for foreigners compared to purchasing landed properties, which have more stringent ownership guidelines. However, foreign buyers are subject to the Additional Buyer’s Stamp Duty (ABSD), currently set at 20% for their initial property purchase in Singapore. Despite these extra expenses, the stable and promising future of the Singapore real estate market continues to draw in foreign investment. To explore more options for investing in Singapore, you can check out Singapore Condos.
The 99-year leasehold site where the hotel sits spans over 1,701 square feet, with a zoning of “hotel” and a plot ratio of 4.2 under the latest Master Plan. There are about 89 years remaining on the land tenure. The total floor area of the six-storey hotel is 7,142 square feet, translating to a price of $3,780 per square feet on the floor area.
Similarly, the five-storey commercial building at 36 Hongkong Street is built on a 1,733 square feet plot, with a zoning of “commercial” and a plot ratio of 4.2 under the Master Plan. This 99-year leasehold site has a remaining land tenure of 93 years. The building’s total floor area is 7,279 square feet, with a guide price of $3,105 per square feet. The ground floor of the building is currently leased to a bridal shop, while the upper floors house offices.
The executive director of capital markets at CBRE Singapore, Clemence Lee, explains that both properties have appealing remaining land tenures in comparison to other 99-year leasehold properties available for sale in the CBD area. These assets would also be suitable for owner-occupiers looking for a flagship property with naming rights at a reasonable price for their exclusive operations.
As both properties are classified as hotel and commercial properties, foreigners and companies can purchase them without incurring Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) on the transactions. The properties are located in Clarke Quay, a well-established riverfront lifestyle precinct with various renowned restaurants, bars, boutique hotels, and fitness studios. Both assets are conveniently situated near Clarke Quay MRT Station, on the North-East Line.
According to Lee, the nearby CQ@Clarke Quay will soon undergo a $62 million asset enhancement initiative. Additionally, the upcoming completion of two new large-scale integrated developments, Canninghill Piers and Union Square, will further add to the vibrancy of the area. He also believes that the properties at 7 and 36 Hongkong Street have tremendous potential for future rental growth and capital appreciation in the medium to long term.
Both properties will be up for sale in an expression of interest exercise, which closes on March 26. Interested parties can check out the latest listings for Commercial Real Estate properties and compare the price trend between Commercial and Industrial properties as well as the trends in the price and rental transactions for commercial real estate.