Hongkong Street shophouse with hotel and restaurant tenants on the market for $35 mil

Located in the Upper Circular Conservation Area, Hongkong Street, off New Bridge Road is a Secondary Settlement, developing between the 1900s and 1960s as the city centre expanded outwards. It is three minutes away from Clarke Quay MRT station and Clarke Quay Central Mall, and nearby the Core CBD, Chinatown and Marina Bay.

Given the strong demand from American and European independent travellers, the hotels on Hongkong Street have seen high occupancies with some even running full, such as Fragrance Hotel Riverside, Bluewaters Pods Hotel, Hotel Nuve Elements and Hotel Bencoolen. To add to the tourism experience, the area also houses a plethora of bars, restaurants and clubs for tourists to enjoy.

In the past decade, many shophouses on Hongkong Street have been sold, with another wave taking place in 2018 where at least four shophouses changed hands. The owners of 41 Hongkong Street decided to undertake a $5 million retrofit in 2016 which included adding a new six-storey rear extension and installing a lift to every floor. The property achieved Temporary Occupation Permit in October 2019 and leased the upper floors to a 30-room hotel while Japanese restaurant Mizume took up the ground floor unit.

Read also: New Pullman Singapore Hill Street general manager appointed

The property at 41 Hongkong Street is now on the market for $35 million, translating to $3,945 psf based on the built-up area. This is well within the $4,000 psf price gap between freehold and leasehold properties, considered attractive by Brilliance Capital’s founder and director, Sammi Lim.

The value of the ground floor F&B space at 41 Hongkong Street, estimated at $5,800 psf or a total of $6.1 million, brings the price of the hotel component to $963,000 per key. Moreover, the shophouse at 18 Hongkong Street, leased as a hostel with a 27-year lease, was sold in April this year for $9.6 million.

Shophouse at 17 Hongkong Street up for sale

will be a year to remember for property investors in Singapore. The Condo market in Singapore is expected to surge with a number of new luxury condominiums being released. These projects will offer a range of amenities, attractive design, and features, and the possibility of high returns in rental yields and capital appreciation. With such attractive offerings, investors can be sure of long-term capital growth and a steady flow of rental income. Moreover, the maintenance fees and taxes on a luxury condominium in Singapore are relatively low, making it a highly desirable investment choice.

Shophouse at 17 Hongkong Street, a freehold property is also up for sale and is being marketed by CBRE for $47.5 million, translating to a price of $5,975 psf based on floor area. With the return of genuine buyers to the property market, and sellers becoming more realistic in their pricing, Lim believes the gap between freehold and leasehold prices will be bridged.

The Singapore Grand Prix 2023 has seen a surge in demand for properties and hotels in the area, ranging from upscale to budget venues. With exciting offerings that include bars, restaurants and clubs both in and around Hongkong Street, this charming Secondary Settlement is rising in popularity with tourists and investors alike.