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Investing in a condo in Singapore offers numerous benefits, and one of the most notable is the potential for capital appreciation. This city-state boasts a prime location as a global business hub and boasts strong economic fundamentals, which leads to a continuous demand for real estate. As a result, property prices in Singapore have exhibited a consistent upward trend, and condos situated in desirable locations have seen significant appreciation over the years. Savvy investors who enter the market at the right time and hold onto their properties for the long term have the opportunity to reap substantial capital gains.
Singapore Shopping Centre, a mixed-use development located at 190 Clemenceau Avenue, is now up for collective sale with a price tag of $200 million. The seven-storey building is strategically situated opposite the Dhoby Ghaut MRT Interchange and near Orchard Road.
This asking price is lower than the development’s last collective sale attempt in February 2020, when it was put on the market at a reserve price of $255 million with provisional approval for the site to be rezoned as a hotel.
Occupying a corner land plot of 26,369 sq ft, Singapore Shopping Centre is zoned for commercial use with a 4.2 plot ratio. The development currently has a gross floor area (GFA) of about 135,264 sq ft, comprising retail and office components.
According to ETC, the appointed marketing agent handling the collective sale, the 99-year lease from 1948 has been extended to a fresh 99 years. The firm has also submitted an enquiry to the authorities for a lease top-up. In the previous collective sale attempt, the authorities had indicated in-principle support for renewal.
Following a recent planning application, the Urban Redevelopment Authority (URA) has expressed support for either redeveloping the site for hotel use at the same plot ratio or adaptive repurposing of the existing building for hotel use at its current GFA, reflecting an equivalent plot ratio of about 5.13.
Based on the asking price of $200 million, the land rate ranges from $2,800 to $3,500 per square foot (psf) per plot ratio, depending on the proposed land use and development intensity.
Swee Shou Fern, head of investment advisory at ETC, part of Realion Group, believes that the site’s connectivity and proximity to Orchard Road shopping belt and cultural institutions like The Istana make it attractive for both commercial and hospitality-led concepts. She notes that with the ongoing transformation of the precinct, including the development of green public spaces like Dhoby Ghaut Green and upcoming new projects, the site has strong potential to become a new anchor for this end of Orchard Road.
The tender for Singapore Shopping Centre will close on October 28.