- Property has a guide price of SGD7 million; located near Clarke Quay and Raffles Place MRT Stations -
Singapore, 17 November 2017 – Leading global commercial real estate services firm, Colliers International Group Inc. (NASDAQ and TSX: CIGI) will put up a five-storey commercial building prominently located at South Bridge Road for sale by auction on November 23. Situated between the junctions of Upper Circular Road and Carpenter Street, the property commands excellent visibility in the heart of the city.
The guide price for the property is SGD7 million, which translates to a land rate of SGD5,573 psf on land area, and SGD1,332 psf based on the current floor area. Located within the Upper Circular Conservation Area, the building sits on a site that spans approximately 1,256 sq ft and has a floor area of approximately 5,252 sq ft. It has a land tenure of 99 years with effect from 1951.
Under the 2014 Master Plan, the site is zoned for full commercial use with a plot ratio of 4.2. Properties with full commercial-use zoning are favoured by investors as additional buyer’s stamp duty (ABSD) and seller’s stamp duty (SSD) are not applicable.
The property is highly accessible via public transportation as it is located within walking distance to Clarke Quay (240m) and Raffles Place (500m) MRT Stations. It also has convenient access to a carpark at the back of the property.
The five-storey building, which has a private lift and two external staircases, is surrounded by a host of restaurants, hip bars, hotels and a wide range of businesses. It also has the potential to tap a steady flow of pedestrian traffic given its proximity to the Raffles Place commercial hub as well as the Boat Quay and Clarke Quay entertainment district.
Ms Tang Wei Leng (邓慧玲), Managing Director at Colliers International, says, “It is an excellent investment opportunity as such rare properties are usually tightly held. The SGD7 million guide price is extremely competitive for a commercial building located within prime CBD area, right next to the Raffles Place. In addition, commercial buildings with prominent road frontage, ample parking space, and MRT stations located nearby are high in demand. The buyer can apply for a lease top-up to a fresh 99-year tenure with the Singapore Land Authority (SLA) which we believe will offer significant enhancement to the property’s value.”
According to Singapore Institute of Surveyors and Valuers (SISV), a neighboring five-storey commercial building (land area: approximately 1,272 sq ft) was purchased at SGD1.75 million in 2008, and re-sold at SGD6.1 million with a balance lease of 33 years in 2013. This reflects a capital appreciation of approximately 200% over five years.
Comparable properties with longer lease tenures – including 45 Hong Kong Street, 205 New Bridge Road and 18 Gemmill Lane – were transacted at elevated prices last year. There were no SISV transaction records for District 01 this year.
Currently, the first storey of the property is used for retail, while the second to fifth floors are for commercial use. The property will be sold with vacant possession.
Ms Tang notes, “Situated between a restaurant and a coffee shop, the property has the potential to convert to F&B or residential usage, subject to approval from the relevant authorities. Furthermore, it has the advantages of having two external staircases and a washroom on every level, giving the investor-buyer flexibility in leasing each floor separately to different tenants.”
The auction will be held at the Amara Hotel (165 Tanjong Pagar Road) at 2.30pm on November 23