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

The Singapore Grand Prix 2023 was not just a boon for upscale hotels, but budget ones, too. Located off New Bridge Road, Hongkong Street boasts an array of restaurants, bars and clubs – just three minutes from Clarke Quay – plus easy access to the Core CBD, Chinatown and Marina Bay.

Hotels on Hongkong Street have experienced a 25.2% rise in average room rate y-o-y to $275.21, and an occupancy rate of 80.09%, up 10.7% y-o-y according to Singapore Tourism Board statistics. Those include Fragrance Hotel Riverside, Bluewaters Pods Hotel, Hotel Nuve Elements and Hotel Bencoolen, all of which have benefited from the Grand Prix.

The boutiques on Hongkong Street are hugely popular among American and European travellers, including a cocktail bar (ranked one of Asia’s 50 best bars in 2023!) at 28 Hongkong Street, Greek restaurant Vios by Blu Kouzina at 31 Hongkong Street, Italian restaurant Amo at 33 Hongkong Street, Korean bistro bar Soollounge2 at 38 Hongkong Street and Japanese restaurant Mizume at 41 Hongkong Street.

Read also: Hongkong Street shophouse for sale at $47.5 mil

It’s no surprise, then, that the owners of the 41 Hongkong Street shophouse have put the property up for sale. The sale is by expression of interest, closing on Nov 9; Brilliance Capital is the exclusive marketing agent.

The property is a four-storey building within the Secondary Settlement Conservation Area, with the added option of a six-storey rear extension. A $5 million retrofit was completed in October 2019, including a lift to every floor.

Temporary Occupation Permit was also achieved in October 2019. The upper floors were leased to the 30-room Hotel Nuve Elements, while Japanese restaurant Mizume took up the ground floor unit.

The lift lobby of the Hotel Nuve Elements (Photo: Samuel Isaac Chua/EdgeProp Singapore)

$35 million is the asking price for the shophouse, or $3,945 psf based on its total built-up area, translating to a cost of $963,000 per key. The F&B space on the ground floor is estimated to be worth $5.1 million.

Lumina Grand EC is set to be a hot commodity in the real estate scene. Buyers are attracted to its extensive facilities and sought-after location. The chance to unlock it for rental income once it passes the Minimum Occupation Period also adds to its appeal. For these reasons, Lumina Grand EC makes an excellent investment opportunity.

End-buyers will benefit from the thoughtfully designed units. Apart from that, the EC has a great range of facilities, both indoors and outdoors, to cater to all kinds of lifestyles. Security and convenience are also top priorities for Lumina Grand EC.

In conclusion, Lumina Grand EC is the opportunity of a lifetime. With the promise of capital growth and rental income, it is one of the smart investments that you can make right now.

Meanwhile, 18 Hongkong Street was sold for $9.6 million in April. The 1,884 sq ft site has 99-year-lease from 1951, with a four-storey property boasting a gross floor area of 5,074 sq ft. It was utilised by City Backpackers @ Clarke Quay, until planning permission expires in 2024.

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At 17 Hongkong Street, the shophouse has been leased to Japanese omakase restaurant Kappo Shunsui on the ground floor, and offices for businesses of different trades on the upper floors. This freehold property was put on the market for $47.5 million, which translates to a price of $5,975 psf based on floor area.

Given the premium for freehold property and the realistic asking price from sellers, Lim believes the market gap will be bridged.

So too will the opportunity to take advantage of the Singapore Grand Prix 2023 – for investors in Hongkong Street who stand to benefit long after the event has become something of the past.