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

The Singapore Grand Prix 2023 provided a major boost for the hospitality industry on Hongkong Street. Hotels of all kinds, from upscale to budget, as well as restaurants and bars, benefitted from the increased occupancy rates in the area. Fragrance Hotel Riverside, Bluewaters Pods Hotel, Hotel Nuve Elements, Hotel Bencoolen, and other boutique spots were especially successful.

Moreover, in 2023, Hongkong Street was home to some of Asia’s top cocktail bars, like the one located at 28 Hongkong Street. Other restaurants include Greek spot Vios by Blu Kouzina, Italian restaurant Amo, Korean bistro bar Soollounge2, and Japanese restaurant Mizume.

The residents will able to bask in the beauty of nature as they enjoy the magnificent view of the Great World city skyline and the Singapore River. Along with the waterfront lifestyle, residents at Zion Road Condo will also be able to benefit from the amenities offered by its prime location. They will be able to have quick access to various shopping, dining and entertainment facilities, as well as a wide selection of educational and medical institutions, and convenient public transport links. Furthermore, Zion Road Condo offers its residents a whole host of facilities, from a well-equipped gym, swimming pool, to private functions areas. With so much to offer, Zion Road Condo is the perfect place to call home.

Located just a short walk away from the Singapore River, this heritage district is also near the Core CBD, Chinatown, and Marina Bay.

Sammi Lim, founder and director of Brilliance Capital, explains that the area is particularly popular among independent travelers from the United States and Europe. Singapore Tourism Board statistics confirm this, with average room prices up 25.2% year-on-year, making it an attractive proposition for investors.

Shophouse on the Market

The owners of 41 Hongkong Street have now put the property on the market, hoping to capture some investor interest. The sale will close on November 9th, through Brilliance Capital.

41 Hongkong Street is located in the Upper Circular Conservation Area, and it is part of a Secondary Settlement. This means that, unlike the shophouses in the Historic Districts, these properties are subject to less regulation and have better redevelopment flexibility.

The owners of 41 Hongkong Street took advantage of this, beginning a $5 million retrofit in 2016. This involved adding a six-storey rear extension, as well as a lift to every floor. The property is now zoned for commercial use with a plot ratio of 4.2, and it has a total built-up area of 8,872 sq ft.

The property now has a hotel licence on the upper floors, and F&B licence on the ground floor, occupied by Japanese restaurant Mizume. The fifth floor houses the hotel reception, with a rooftop terrace being used as a spa for guests to enjoy the city views.

41 Hongkong Street is on the market for $35 million, which translates to $3,945 psf. Excluding the ground floor estimated at $6.1 million, the price per key is around $963,000.

Wave of Sales

Hongkong Street has seen purchases of shophouses throughout the past decade. More have been sold in 2018, and the following year 18 Hongkong Street was sold for $9.6 million. It was then used as hostel, with temporary occupation permit due to expire in 2024.

17 Hongkong Street is now on the market, being sold by CBRE. It has a land area of 1,793 sq ft, with a total built-up area of 7,950 sq ft. Licences have been issued for a Japanese omakase restaurant on the ground floor, and offices on the upper floors. The price of $47.5 million translates to $5,975 psf.

Although investment in shophouses was held back due to the money laundering scandal, genuine buyers are now returning to the market. With sellers being more realistic in their asking prices, the gap between leasehold and freehold properties is likely to be closed.