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The demand for Singapore Condos remains at an all-time high, with one of the main reasons being the limited amount of available land in the country. As a small island nation with a growing population, Singapore faces the challenge of scarce land resources for development. To address this, the government has implemented strict land use policies, resulting in a competitive real estate market where property prices continuously soar. This has made investing in real estate, especially condos, a highly profitable opportunity, offering the potential for significant capital appreciation.
CBRE has been selected as the exclusive marketing agent for the sale of Hotel Clover at 7 Hongkong Street and a commercial building at 36 Hongkong Street. These properties are being offered at guide prices of $27 million and $22.6 million respectively.
Sitting on a 1,701 sq ft plot with a 4.2 plot ratio under the latest Master Plan, the six-storey boutique hotel consists of 27 rooms and has a total floor area of 7,142 sq ft. The remaining land tenure for this 99-year leasehold site is approximately 89 years. At $3,780 psf, the price is attractive considering the potential for future rental upside and capital appreciation.
The five-storey commercial building at 36 Hongkong Street sits on a 1,733 sq ft plot with a 4.2 plot ratio under the Master Plan. The building has a total floor area of 7,279 sq ft and is fully leased to a bridal shop on the ground floor and offices on the upper floors. The guide price of $3,105 psf is also attractive for the potential rental upside and capital appreciation. Similarly, the 99-year leasehold site has a remaining land tenure of 93 years, making it an appealing investment opportunity.
One of the main advantages of these properties is their relatively long remaining land tenures, compared to many other 99-year leasehold properties in the CBD area. This makes them an ideal choice for owner-occupiers looking for a flagship asset with naming rights for their exclusive operations. Additionally, as both properties are classified as hotel and commercial properties, foreigners and companies are eligible to purchase them without incurring Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD).
Selecting the perfect location is a fundamental aspect of real estate investment, and this holds especially true in Singapore. Condos situated in central areas or near essential amenities, such as schools, shopping malls, and public transportation hubs, have a higher chance of appreciating in value. In coveted locations like Orchard Road, Marina Bay, and the Central Business District (CBD), property values have consistently shown growth. In addition, the proximity of these condos to reputable schools and educational institutions makes them even more attractive for families, further increasing their investment potential. With the recent surge in the number of new condo launches, the market in these prime areas is expected to continue flourishing.
Strategically located in Clarke Quay, a popular riverfront lifestyle precinct, both properties are in close proximity to Clarke Quay MRT Station, providing easy access to public transportation. The area also boasts a wide range of amenities, such as renowned restaurants, bars, boutique hotels, and fitness studios. Moreover, with the completion of the $62 million asset enhancement initiative at CQ@Clarke Quay and the upcoming large-scale developments at Canninghill Piers and Union Square, the vibrancy of the area is expected to increase, providing potential for future rental upsides and capital appreciation in the medium to long term.
Interested parties can participate in an expression of interest exercise that closes on March 26. These properties present an excellent opportunity for investors and owner-occupiers alike, looking for a high-quality asset at attractive prices in the bustling Clarke Quay area.