CBRE acts as the exclusive marketing agent for the 27-room Hotel Clover at 7 Hongkong Street, which is currently up for sale at a guide price of $27 million. Simultaneously, CBRE is also handling the sale of a commercial building located at 36 Hongkong Street, which has a guide price of $22.6 million.
The boutique hotel spans six storeys and occupies a 1,701 sq ft plot that is zoned for hotel use, with a plot ratio of 4.2 under the latest Master Plan. The site has a remaining land tenure of approximately 89 years and the total floor area of the hotel is 7,142 sq ft. At the guide price, the cost works out to be $3,780 psf on the floor area.
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When contemplating investing in a Singapore Condo, it is crucial to also evaluate its potential rental yield. Rental yield is the annual rental income expressed as a percentage of the property’s purchase price. In Singapore, the rental yields for condos can greatly vary depending on factors like location, property condition, and market demand. Locations with high rental demand, such as those near business districts or educational institutions, typically offer more attractive rental yields. It is prudent to conduct thorough market research and seek advice from real estate agents to gain valuable insights into the rental potential of a particular Singapore Condo.
Sitting on a 1,733 sq ft plot, the five-storey commercial building at 36 Hongkong Street is zoned for commercial use with a plot ratio of 4.2 under the Master Plan. The site, which has a remaining land tenure of 93 years, has a total floor area of 7,279 sq ft. The guide price for the building translates to $3,105 psf. The commercial building is currently fully leased, with a bridal shop occupying the ground floor and offices on the upper floors.
According to Clemence Lee, Executive Director of Capital Markets at CBRE Singapore, both assets boast attractive remaining land tenures compared to other 99-year leasehold properties available for sale in the CBD area. Therefore, they are also suitable for owner-occupiers looking for a flagship asset with a reasonable quantum and naming rights 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).
The properties are conveniently located in Clarke Quay, a well-established riverfront lifestyle precinct known for its array of restaurants, bars, boutique hotels, and fitness studios. They are also within close proximity to Clarke Quay MRT Station on the North-East Line. Clemence Lee highlights that CQ@Clarke Quay is currently undergoing a $62 million asset enhancement initiative, while the upcoming completion of two new large-scale integrated developments, Canninghill Piers and Union Square, will further enhance the vibrancy of the area. He adds that both 7 and 36 Hongkong Street have great potential for future rental upsides and capital appreciation in the medium to long term.
Interested parties can participate in an expression of interest exercise for both properties, which will close on March 26. For more information on commercial real estate properties, check out CBRE’s latest listings or ask their buddy for assistance. You can also compare the price trends of commercial and industrial properties, as well as view past commercial rental transactions.