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RAFFLES QUAY, D01, 048581
Hong Leong Building, prominently situated in Singapore's bustling central business district, is an impressive commercial edifice belonging to Hong Leong Holdings Limited. With an address of 16 Raffles Quay, this landmark structure graces the Raffles Place zone, near the historically significant Lau Pa Sat Market.
The skyscraper neighbourhood around the building is quite notable, with buildings like One Raffles Quay, 6 Raffles Quay, Robinson Towers, and AIA Tower all within a stone's throw distance - less than 100 meters away.
The Hong Leong Building itself boasts 45 stories of office spaces, with total lettable area of 485,000 sq ft. It also accommodates parking from the 4th to the 8th level and a basement level replete with shops and F&B outlets.
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The retail property market has endured many challenges over the last few years. Since e-commerce and online shopping gained traction, many brick-and-mortar stores have had to re-invent themselves to stay relevant. Over the past years, e-commerce/digital shopping platforms have seized a share of consumers’ wallet, by offering convenience and access to a wide range of products within the comfort of their homes. The Covid-19 pandemic lockdown also helped to further proliferate online shopping and food delivery.Challenging decade of curveballs and wildcardsWhile retailers and landlords were starting to adapt to the increasing prominence of e-commerce, they were dealt another curveball – the COVID-19 pandemic – which saw malls becoming ghost towns and stores being shuttered. By the end of 2020, landlords saw retail rentals plunge by 15%. As the pandemic eased and borders gradually reopened, the market finally saw light at the end of the tunnel. As of Q1 2023, the rental index for retail space was down by nearly 23% from the last peak in Q4 2019 (see chart 1) – while the decline of retail rentals has slowed significantly since the end of 2021, it has yet to show signs of bottoming. The retail property market has endured many challenges over the last few years. Since e-commerce and online shopping gained traction, many brick-and-mortar stores have had to re-invent themselves to stay relevant. Over the past years, e-commerce/digital shopping platforms have seized a share of consumers’ wallet, by offering convenience and access to a wide range of products within the comfort of their homes. The Covid-19 pandemic lockdown also helped to further proliferate online shopping and food delivery. Tourism rebound and revenge spending boost confidence for landlords and retailersWhile rentals have yet to bottom out, demand for retail space has been growing as Singapore’s tourism industry gradually recovers to pre-pandemic levels. In April this year, international arrivals exceeded one million, even though it remained below the 1.7 million visitors recorded in January 2020, just before the pandemic, according to the Singapore Tourism Board (STB). Year-to-date, Singapore has recorded some 4.04 million visitor arrivals. Despite China’s border reopening at the start of the 2023, the growth in visitor arrivals from Mainland China has been lacklustre. In April this year, Mainland China took fifth place as a top source of visitors, with just 90,725 visitors. Prior to the pandemic, Mainland China was the top source of visitors. In 2019, Singapore received a monthly average of 300,000 Mainland China visitors. Market watchers suggest that supply-side lags due to pricey air tickets and tight flight capacity, as well as delays in passport renewals have moderated tourist arrivals from China. However, the arrivals are expected to gradually increase towards the second half of the year. Retail sales also enjoyed steady growth in domestic and tourist receipts, owing to revenge spending post-pandemic and more dining-out. Retail sales grew by 4.5% YOY in March this year. The estimated total retail sales value in March was $4.1 billion, according to the Department of Statistics. Consumers seem unfazed by the slower economic outlook, understandably due to the low unemployment rate and growing wages. With that, demand for retail space from occupiers expanded over the last few months. In Q4 2022, slightly over 4,500 rental contracts worth $66 million have been signed – the highest figures on record for quarterly rental volume and total rental value recorded in a quarter. Demand for retail space is expected to remain buoyant in the medium-term, particularly for tourist hotspots.Retail hot spotsWith Singapore having fully transitioned to endemic-living with Covid-19, commercial tenants in the prime office districts have also reported better business earnings, as most workers have returned to the workplace. In Q1 2023, most retail spaces in the Downtown Core planning area reported an increase in median rentals on a year-on-year basis. The median rental ($psf) of retail space in the Raffles Place subzone grew by 11.2% YOY while that of retail spaces in the Anson Road area grew by 34% YOY. The vacancy rate of retail spaces in the Downtown Core has also fallen to pre-pandemic levels of 9.8%, though still above its last recent low of 7.2% in Q4 2019 – just before the pandemic outbreak.Meanwhile, the growth in rentals in the tourist hotspots of Orchard and Chinatown planning areas have been uneven. Rentals of retail space in the Dhoby Ghaut and Tanglin planning subzone grew by 11.5% and 34.4% YOY respectively, while other subzones reported a softening in rentals on a year-on-year basis.City fringe and suburban malls continued to enjoy consistent growth in occupancies since the start of the pandemic. After peaking in Q2 2020, vacancies have fallen steadily for retail malls in the city fringe and suburban regions. In Q1 2023, the vacancy rate of Fringe Area and outside Central Region malls stood at 7.1% and 4.1% respectively. Trends and demand drivers in 2023 – post-pandemic euphoria and the power of hype In 2023, revenge spending has largely dominated consumer behaviour - indulging in travel experiences and luxury goods – driven by pent-up demand despite the economic uncertainties. That said, such post-pandemic euphoria may not necessarily reflect a permanent shift in consumption patterns.In 2023 and beyond, a significant demand driver for retail space would be pop-up event spaces, which have become increasingly popular amongst businesses with no physical store-fronts. Another key group of tenants are foreign, new-to-Singapore brands that have an established reputation and large overseas consumer base, which may appeal to their shopper fan-base in Singapore. Hard times over for retailers and commercial landlords – for nowAccording to the URA, there is a stable supply of retail space in the pipeline. As of the end of Q1 2023, about 224,000 sq ft of retail space was added to the stock – with another 4.4 million sq ft of retail space expected to be complete over the next few years. With no major supply shocks expected over the next 5 years, retail space vacancies and rentals are expected to be stable in the medium-term.The retail market, particularly malls in the Central Region, will continue to ride on the current influx of travellers with pent-up demand for travel and spending. Also, with the growth of tourist arrivals from mainland China, retail spending is expected to stay elevated for the rest of the year. For retail malls in the CBD, foot traffic and sales could remain healthy with the return to office push enlivening the city.On the whole, the recovery of the retail market is inextricably tied to macroeconomic conditions and external factors. While the government is not projecting a recession in Singapore in 2023, market watchers are expecting a slowdown in output and spending. Retailers and businesses will need to be cautious about increasing their footprint too quickly. Meanwhile, landlords ought to take steps to ensure the resiliency of their current tenant-mix.PropNex, which is working with several landlords, has a portfolio of commercial space that are available. Speak to the PropNex’s Commercial leasing team on your space leasing needs today.Disclaimer:While every reasonable care is taken to ensure the accuracy of information printed or presented here, no responsibility can be accepted for any loss or inconvenience caused by any error or omission. The ideas, suggestions, general principles, examples and other information presented here are for reference and educational purposes only.This information contained herein is not in any way intended to provide investment, regulatory or legal advice or recommendations to buy, sell or lease properties or any form of property investment. PropNex shall have no liability for any loss or expense whatsoever, relating to any decisions made by the audience.All copyrights reserved.
The Singapore office leasing market is still alive and well post-pandemic. Bold predictions that the Covid-19 pandemic - which drove employees to work from home en masse – will lead to a demise of physical workspaces never did materialise.While many companies have retained some form of remote working set-up, the physical office space continues to be important and relevant to facilitate collaborative work and foster corporate culture.The extensive easing of pandemic measures in 2022 saw a strong recovery in the office leasing market, with rentals for office space in the Central Region climbing by 11.7% in 2022, following a 1.9% increase in 2021, according to the Urban Redevelopment Authority’s office rental index.In Q1 2023, office rentals rose by 5.1% QOQ, building on a similar pace of rental increase in the previous quarter. The rental growth in Q1 2023 is the sixth straight quarter of increase, and the office rental index has recovered to pre-pandemic levels since Q4 2022 (see Chart 1). In fact, the 5.1% QOQ growth in each of Q4 2022 and Q1 2023 is the largest quarterly jump since Q1 2011, where office rentals rose by 5.4% QOQ.Singapore’s transition to living with endemic Covid-19, the return to office push, and reopening optimism helped to fuel the office market recovery. Consequently, the improvement in business confidence, coupled with the tight supply of office space put upward pressure on office rentals.Office leasing market performance in Q1 2023Despite the weaker economic growth outlook and uncertainties in the market – arising from a spate of global tech-layoffs in the end of 2022, and the banking sector turmoil in the West in March 2023 – the office leasing activity in Singapore was healthy in Q1 2023.According to URA Realis data, 1,828 office rental contracts were signed in Q1 2023 – the highest number on record since Q4 1999. The leasing demand in Q1 2023 has strengthened with the number of contracts rising by 19% QOQ from 1,535 in Q4 2022, and up by nearly 18% from 1,553 contracts in Q1 2022. In tandem with the robust demand, the total value of office rental transactions hit a fresh high to about $61 million in Q1 2023 – surging by 73% from $35.2 million in the prior quarter. On a year-on-year basis, the rental value was up by 68% from $36 million in Q1 2022 (see Chart 2).The limited supply completion of quality office space in the city, with two projects coming up (Guoco Midtown in Bugis area, and IOI Central Boulevard Tower near Raffles Quay), as well as the tight vacancy rate should help to support prime office rents in the near-term.Figures from the URA showed that the office vacancy rate tightened marginally from 11.3% in Q4 2022 to 11.2% in Q1 2023. It is likely that vacancies will remain low owing to the limited upcoming office stock and healthy pre-commitment at new-builds. A DBS report noted that Guoco Midtown (which obtained its TOP in January 2023) has achieved a pre-commitment rate of about 80%, while Central Boulevard Tower, which is expected to be completed by end-2023 or in 2024 already has 30% of the space committed to Amazon.An injection of fresh office supply tends to spark flight to quality where occupiers may opt to relocate their premises to more central locations, or to higher quality buildings. Such vacated spaces, along with the emergence of some shadow space – as some companies right-size their operations or adjust their space needs due to flexible work arrangements - will present office occupiers with opportunities to upgrade to better office buildings in more attractive locations.Assessing selected locations in the central business district and downtown core, URA Realis data showed that median monthly rentals have generally held up. Marina View and Shenton Way each saw a more than 18% QOQ growth in median rent, followed by Marina Boulevard where median rent rose by nearly 14% QOQ in Q1 2023. Meanwhile, marginal dips were observed in Collyer Quay and Raffles Place. Market Street witnessed a slightly bigger decline of 5.5% QOQ in median rents, but this could be due to the thinner rental volume during the quarter compared to other locations (see Table 1).Market outlookPropNex expects office leasing demand could track alongside economic growth trend, and the tight supply pipeline will help to support rentals, leading to a more moderate pace of office rental growth in 2023. The withdrawal of space from the redevelopment of older buildings in the city – tapping on the URA’s CBD Incentive Scheme – has also helped to support office demand and rents.The supply of new space will remain limited over the next couple of years amid the redevelopment of some existing office building, such as Clifford Centre, Keppel Towers, and 333 North Bridge Road. According to URA figures, about 178,000 sq m (gross) of office space could be completed in the remaining 9 months of 2023. Another 179,000 sq m of space is in the pipeline in 2024, and the supply drops to 107,000 sq m and 44,000 sq m in 2025 and 2026 respectively.Global macroeconomic headwinds and geopolitical tensions are expected to have an impact on commercial space leasing decisions. Singapore, however, remains an attractive destination for businesses, including multinational corporations, and family offices and wealth managers owing to the country’s stable political landscape, good infrastructure, pro-business policies, and talent pool. A case in point, despite the uncertainties in 2022, Singapore attracted a record $22.5 billion in fixed asset investments, driven by the electronics sector.Meanwhile, in spite of the recent upheavals in the tech sector and banking stresses in the US and Europe (e.g. collapse of the Silicon Valley Bank and take-over of Credit Suisse by UBS), Singapore’s financial system remains sound and demand for tech talent is still healthy. However, given the office sector’s substantial exposure to the financial services and tech industries, any serious downturn in these industries could affect the Singapore office segment.PropNex, which is working with several landlords, has a portfolio of commercial space that are available. Speak to the PropNex’s Commercial leasing team on your space leasing needs today. Disclaimer:While every reasonable care is taken to ensure the accuracy of information printed or presented here, no responsibility can be accepted for any loss or inconvenience caused by any error or omission. The ideas, suggestions, general principles, examples and other information presented here are for reference and educational purposes only.This information contained herein is not in any way intended to provide investment, regulatory or legal advice or recommendations to buy, sell or lease properties or any form of property investment. PropNex shall have no liability for any loss or expense whatsoever, relating to any decisions made by the audience.All copyrights reserved.
A common saying goes: work is something you do, not a place you go to. This, perhaps is resonating more loudly now in the era of telecommuting and flexible work. Rather than ditching the workplace, however, firms are rethinking their real estate needs and setting the office up as a nexus of collaboration. To be sure, the physical office space has seen its fair share of changes, even before Covid-19 hit. It has evolved from the fluorescent-lit office floor lined with cubicles, to open-planned offices with activity-based workspaces, to biophilic office design, as well as the rise of coworking spaces that have appealed to so many young entrepreneurs.Having to pivot to largely a work-from-home arrangement during the Covid-19 pandemic lockdowns, occupiers have gained insights on their operational needs, digital capabilities, and areas where they fell short. While remote working was foisted upon them in 2020, many companies have decided to continue to offer such flexi arrangement to staff post-pandemic. How much space do I need?Generally, an employee will require an average space of about 100 to 120 sq feet. This figure could be higher depending on the nature of the business. For instance, professional consultancy firms or law firms may need more space for meetings rooms and private offices for key executives. By that estimate, a firm with 100 employees could be looking at an office space spanning 10,000 to 12,000 sq ft. However, certain corporate real estate utilisation strategies may either push space needs up or take it down a notch. They include:1. Hot-deskingProviding hot-desking options – where staff have no assigned seating - will help to free up space, particularly under-utilised ones. Upon assessing their business needs and space utilisation, occupiers may opt to undertake hot-desking across the business, or perhaps for a certain section of the office. For example, hot-desking can be adopted for sales people who are frequently out of the office. Instead of assigned seats, a hot-desking area can be set aside for these employees, thereby freeing up space, where their empty desks once sit, for other uses. In turn, lockers can be provided to staff to store their personal items.Another plus point for hot-desking is that it can help to foster collaboration and support cross-functional work. The idea is that such an arrangement gives employees an opportunity to sit with co-workers from other teams, and perhaps engage in conversations that will spark new work ideas.2. Activity-based working (ABW)ABW is a workplace design concept that provides a variety of work settings in the office to cater to different work activities and how people do their work. To some extent, ABW can work hand-in-hand with hot-desking, by re-purposing the freed-up space for other uses. For instance, an office could have designated areas for focused work, where phone calls and loud discussions are discouraged. Certain areas could be designed as social hubs with a café-style setting, where employees can mingle, or have huddle rooms (less formal meeting spaces) for team discussions. Some companies also dedicate a sizable area to the staff pantry, offering a conducive space to encourage bonding and foster a sense of community.Meanwhile, to optimise space utilisation, certain areas can have multiple uses. A relatively generous guest reception area could double up as a gathering spot for town hall meetings or a place to host client events. 3. Work from home (WFH) hybrid / work from anywhereAs employers and employees embrace hybrid working, it presents an opportunity for companies to review their space needs, and consider if it is possible to convert some spaces for other uses or to adopt hot-desking. Firms with a formalised WFH structure – eg. 3 days on-site and 2 days from home, and staggered from department to department - may be able to reassess the space required since not every employee will be at the office at the same time. 4. Augmenting with coworking spacesWith the proliferation of coworking spaces, in and outside of the city centre, companies could opt to have a moderately-sized main office in the central business district – keeping rentals more manageable - while taking advantage of coworking spaces elsewhere for remote working. This will enable staff to work in a coworking location that is closer to their home, and keep the main office for client meetings or workers who need to be in the CBD due to the profile of clients they serve or nature of their work. Coworking spaces can also function as temporary swing space when companies search for a suitable office location or when their existing office is being renovated. Such spaces can also be useful in accommodating an increase in headcount due to the onboarding of new projects. 5. Hub and spoke conceptAnother approach could be the hub and spoke method where businesses locate their headquarters or main office in the city, and have satellite offices in the suburban areas. For example, financial institutions usually maintain a prominent presence in the CBD, but have their back-end operations or support functions in business parks elsewhere. Companies may also adopt this approach if they are required to maintain a prestigious CBD address for branding purpose, but wish to be closer to their clients who may be clustered at a certain location outside the city.6. Core and flexible spaceThe concept of having both core space and flexible space within a building can help occupiers better manage changes in the business cycle or organisational needs. For instance, a company can opt to occupy say, 7,000 sq ft of traditional office space (core space) on a longer lease tenure, while having another 2,000 sq ft of flexible space, which will give them some nimbleness in rejigging their space needs in event of a business downturn. Such flex spaces can also be situated in another location, although having them within the same building as the core space will probably improve efficiency and generate greater productivity. As business needs evolve and the way of work changes, offices will morph as well. Despite the rise of digitalisation and remote working, the physical workplace remains relevant, though its form may continue to evolve. The workplace is pertinent in shaping corporate culture, supporting business goals, as well as attracting and retaining talent. PropNex, which is working with several landlords, has a portfolio of commercial space that are available. Speak to the PropNex’s Commercial leasing team on your space leasing needs today.
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|5月 16日, 2023年SINGAPORE, 16 May 2023 – PropNex Realty has today announced that a 999-year leasehold commercial site bounded by Hoe Chiang Road and Lim Teck Kim Road in the city centre will be relaunched for collective sale for a reserve price of $216 million on 17 May 2023. The reserve price is unchanged from the previous tender that was launched on 19 January 2023, where the tender closed with no bids (on 22 March 2023). The reserve price translates to an estimated land rate of $2,610 psf per plot ratio (psf ppr) for an office development – inclusive of an estimated land betterment charge (LBC) of $55 million. The buyer also has the option to redevelop the site as a hotel development – which will put the land rate at $2,671 psf ppr, inclusive of the estimated LBC of $61.3 million. The site comprises two rows of commercial buildings (1, 3, 5, 7, 9 Hoe Chiang Road and 2, 4, 6, 8, 10 Lim Teck Kim Road) and a piece of remnant land between them. The amalgamation of the two sites and the remnant land will take the total estimated land area to 1,722.5 sq m (approximately 18,540 sq ft). Under the Master Plan 2019, the subject site is zoned for commercial use and has a gross plot ratio of 5.6.Tracy Goh, Head of Investment and Collective Sales at PropNex, said, “The recent hike in the Additional Buyer’s Stamp Duty (ABSD) rate for foreigners from 30% to 60% is likely to divert more funds to commercial real estate investment and redevelopment, as sites that are zoned for commercial use are not subjected to ABSD. In addition, the prime office market remains resilient in Q1 2023 amid tight supply of space, with rentals rising by 5.1% QOQ as per URA data. Meanwhile, the recent sale of office space at Solitaire on Cecil also set a new price record (on PSF basis) for strata office space in the central business district.” In April, three floors at the upcoming freehold office development Solitaire on Cecil were sold for $162.8 million, which works out to $4,300 psf on strata area – marking the highest transacted price in PSF terms for strata office space in the CBD. It has breached the previous record of $4,196 psf set by a deal for office space on the 12th floor of the same project for $52.3 million in March. PropNex understands that the developer of Solitaire on Cecil has sold more than half of the 190,000 sq ft of strata office space at the project. As for office rentals, URA Realis data showed that 762 office rental contracts were signed in Districts 1 and 2 in Q1 2023 – the highest number of rental contracts in a quarter on record. The still healthy office market, coupled with the ABSD hikes will see renewed investment interest in the commercial property segment.Ms Goh added, “Currently, there are no other 999-year tenure commercial sites for sale in CBD. Furthermore, the Hoe Chiang Road/ Lim Teck Kim Road site is not affected by restrictions limiting the strata subdivision of commercial property in the CBD, which will offer more flexibility to the purchaser to redevelop this plot into an iconic strata-titled office building. The restrictions on strata subdivision is expected to crimp the supply of strata-titled office units in the city centre, and it will help to prop up the demand for and prices of such office spaces.” The collective sale site has a dual frontage to Hoe Chiang Road and Lim Teck Kim Road. The future development on the site could potentially enjoy views of the waterfront and is within walking distance to the Tanjong Pagar MRT station, as well as two upcoming stations, Cantonment and Prince Edward Road stations on the Circle Line which are slated to be ready in 2026. In addition, the site is also surrounded by numerous amenities, including the 100AM mall, Icon Village, Guoco Tower, and International Plaza. Meanwhile, a wide range of eateries can also be found in Tanjong Pagar Road, Tras Steet, Peck Seah Street, as well as hawker centres in Amoy Street, Tanjong Pagar Plaza, and Maxwell Road.The collective sale tender will close at 2pm on 31 May 2023. END Lim Teck Kim Road property. Source: PropNexHoe Chiang Road property. Source: PropNex
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|3月 7日, 2023年07 March 2023, SINGAPORE – PropNex Realty, the largest real estate agency in Singapore has today announced that 10 adjoining strata shops at Cuppage Plaza, off Orchard Road, will be put up for sale via tender for an indicative price of $12 million on 08 March 2023. The guide price translates to about $2,347 per square foot (psf) based on the combined strata area of 5,112 sq ft for the 10 adjoining shops.Developed by Far East Organization, Cuppage Plaza at 5 Koek Road in District 9 has a 99-year leasehold tenure, commencing from August 1979. The building – which is located near the Somerset MRT station and several retail malls – is known for its eclectic selection Japanese restaurants and KTV lounges. Cuppage Plaza, along with other establishments in the area offer a variety of F&B and entertainment options, contributing to the thriving nightlife scene in the Orchard Road shopping district.Tracy Goh, Head of Investment and Collective Sales at PropNex, said, “The 10 strata shops are owned by a single owner, who has been holding on to the property since it was built. The space has always been fully-leased since day one and has never been vacant over the last four decades, owing to its sought-after location. In addition, a sizable adjoining shop space that has been approved for nightclub use permanently is also rarely on the market. We expect the high gross rental yield of more than 4% and the continued keen tenancy interest for such premises to appeal to investors, presenting them with a good recurring income and strong rental demand. The 10 shops are presently tenanted to a nightlife business operator and the property will be sold with tenancy.”Retail units at Cuppage Plaza tend to be tightly-held, with only five transactions reflected in the URA Realis caveat data between January 2018 and February 2023. All five transactions were for smaller shops spanning from 344.5 sq ft to 409 sq ft. The most recent transaction was for the sale of a 269.1 sq ft retail space for $795,000 (or $2,954 psf) in June 2022.Ms Goh added, "The Orchard precinct is a lifestyle destination, in particular, the Somerset area where Cuppage Plaza is located is a hive of activity - a vibrant nightlife and entertainment spot. The government also has plans afoot to revitalise Orchard Road, including enhancing historic side streets like Cuppage Terrace. Post-Covid-19 and with the reopening of economies, life has mostly returned to normal and we are seeing a pick-up in tourist arrivals as well as business resumption in the entertainment sector. We believe these factors are beneficial to the nightlife and entertainment trade, and will increase the appeal of the strata shops at Cuppage Plaza.”As the portfolio of shops are for commercial use, they are not subjected to the additional buyer’s stamp duty (ABSD) nor the seller’s stamp duty (SSD). Foreign buyers are also eligible to purchase the property.The tender will close at 2pm on 3 May 2023.Cuppage Plaza (exterior) | Source: PropNexCuppage Plaza (interior) | Source: PropNex
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|2月 1日, 2023年01 February 2023, SINGAPORE – PropNex Realty, the largest real estate agency in Singapore has today announced that a freehold commercial building at 202 Serangoon Road will be put up for sale via tender for an indicative reserve price of $43 million on 2 February. The reserve sale price works out to $2,570 psf based on the existing gross floor area (GFA) of 16,733 sq ft.The standalone building in the historic district of Little India sits on a site spanning 5,624 sq ft and enjoys high visibility and heavy foot traffic, with a wide frontage to the teeming thoroughfare of Serangoon Road. Under the URA Master Plan 2019, the site is zoned for commercial use, and as such is not subjected to the additional buyer’s stamp duty (ABSD) nor the seller’s stamp duty (SSD). The property – which has been redeveloped in 2002 - is built up to 4 storeys with a food court in the basement, and has a mechanised carpark and an attic.Tracy Goh, Head of Investment and Collective Sales at PropNex, said, “We expect keen interest from entities that are looking to purchase the property for own use – including companies, commercial schools, and associations - as the building will be sold with vacant possession by the seller. It is also ideal for businesses in the jewellery trade, turning the building into a jewellery hub for gold and precious gemstones – setting Little India up as Singapore’s very own “Gold Souk” akin to that of Dubai. The new owner will have naming rights for the property, which will offer excellent visibility for the business in the busy city fringe location in Serangoon Road. The property is also compelling for investors as it is suitable for various uses such as office, retail, and F&B – in particular, the permanent approval for food court use at the basement will provide healthy recurring income for investors. In addition, there is an opportunity to value-add through refurbishment works in the future to enhance the building.” In terms of connectivity, the property is conveniently located about 400 metres from the Farrer Park MRT station on the North East Line, and has easy access to the Central Expressway via Serangoon Road and Balestier Road. It is also a short 10- to 15-minutes’ drive from the central business district and the Orchard Road shopping belt. Amenities nearby include City Square Mall, Centrium Square, Mustafa Centre, Tekka Place, Tekka Market, and the integrated healthcare and hospitality complex Connexion. Ms Goh added, "The Serangoon area is culturally-rich and the Little India historic district is not only a bustling tourism attraction but also a vibrant spot where the local community come together. The area has undergone rejuvenation with the addition of more commercial offerings over the years, and the upcoming Piccadilly Grand mixed development with a mall and residential units will further enliven the neighbourhood.”Given the improving commercial property market fundamentals, this freehold commercial building presents an appealing acquisition opportunity to both owner-occupiers and investors alike. Furthermore, the tourism sector recovery post-pandemic will also help to uplift businesses in the Serangoon Road area. The tender will close at 2 pm on 16 March 2023.
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