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

High occupancies and rising room rates due to Singapore Grand Prix 2023 have been a boon to many of the boutique hotels, bars, and restaurants on Hongkong Street. Pricey cocktail bars, Greek restaurants, Italian restaurants, and even Korean bistros have all found their place on the street, with many staying full since the event.

Senja Close EC offers its residents an array of amenities such as a 50m Lap pool, gymnasium, tennis court and other recreational facilities. It is just a short drive away from Bukit Panjang Plaza, HillV2 Shopping Mall, Bukit Timah Nature Reserve and Bukit Batok Nature Park.

Close to the downtown area, and situated a mere three minute walk from the Clarke Quay MRT station and Central Mall, Hongkong Street is the perfect destination for independent travellers. With the revival of the city due to the Grand Prix in 2023, the area has seen a 25.2% year-on-year increase in room rates, and an 80.09% occupancy rate, reaping the benefits of the resurgence of tourism.

Located in an area known as the Upper Circular Conservation Area, the street is considered a Secondary Settlement. This means shophouses within this area enjoy greater redevelopment flexibility than those in the Historic District, such as adding a six-storey rear extension, while keeping the front façade in tact.

41 Hongkong Street is the most recent shophouse to come up for sale. With a 99 year lease, starting in 2018, the property contains a hotel on its upper floors and a Japanese restaurant on its ground floor, adding to the existing variety of eateries in the area. The owners underwent a three year, $5 million renovations and retrofit project, as part of the plan to increase occupancy.

Given the premium for freehold property, Brilliance Capital’s Sammi Lim believes the current price point of the property, at $3,945 per sq ft, is attractive. Furthermore, the addition of a hotel licence makes it “very precious”.

Sitting fairly close to places such as Chinatown, Core CBD and Marina Bay, the area is ripe for investments. Previous shophouse sales on the street have been met with high demand whether they were put up for sale five or ten years ago. This property is selling at $47.5 million for its 1,793 sq ft, translating to $5,975 per sq ft.

The money laundering scandal that emerged in Singapore last month, involving ten suspects from China who had allegedly laundered $1.8 billion, has also opened the door to further investments. Genuine buyers are returning to the market at more realistic rates, and with prices that are aligned between leasehold and freehold properties, the gap is beginning to close.

In conclusion, the Singapore Grand Prix 2023 has done wonders for the city, particularly on Hongkong Street, which has benefitted from an influx of boutique hotels, restaurants and bars. With a 99-year lease and hotel licence, 41 Hongkong Street is now on the market for $47.5 million, offering an attractive price of $3,945 per sq ft. With genuine buyers returning to the market, the current price gap between leasehold and freehold properties is closing.