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MOGUL.sg Spotlight: Two Commercial Properties Up for Sale and Why You Should Invest in Them



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Singapore’s residential real estate remains to be one of the most expensive in the world, so investing in private residential properties might be out of reach for many Singaporeans. But there is an alternative – commercial properties. Investing in Singapore’s commercial properties became more popular after the Government implemented cooling measures on the private residential properties in 2011 and 2013.


With the recent implementation of the Additional Buyer's Stamp Duty or ABSD for private residential properties, there is even more interest in commercial properties, as these taxes do not apply with commercial properties. Additionally, family businesses can take advantage of having diverse property investments and assets on freehold tenure on their portfolio. Foreign investors can also invest in the Singapore property market as foreigners will have no issues buying commercial property here.


Commercial properties in Singapore are seen as an attractive investment to many right now. The average rental yields for commercial properties is about 5%, whereas private residential properties rental yield is between 2 to 3% on average. So if you are looking to invest your money for the long term, commercial properties could be an option. Today, we look at two commercial properties that are up for sale and may be worth investing in.

 

Orchard Towers

 

Orchard Towers is a freehold development situated at the corner of Claymore Road and Orchard Road, just on the fringe of the Orchard Shopping Belt. Completed in 1975, this is an integrated development with a commercial space and a tower with 58 freehold residential units.


There are 5 levels of retail space and the remaining floors are offices. Orchard Towers is one of the cheapest commercial spaces you can find in the prime District 9. Rental rates of surrounding developments are almost double of what you can expect here. The average asking rate for rental here is between $4 to $7.50 per square foot.


 

The Property

 

We visited one unit at Orchard Tower currently in the market for sale. The freehold property used to be a night club and is currently unoccupied. The business space is 2,628 square feet big, its tenure freehold – it is also only a few steps away from the building’s main lift and escalator, a strategic location that gives the unit a good vantage point for potential customers.


Entering the unit, traces of the old business is still evident, but we immediately realised how much space the unit offers. Aside from its wide main room, there are storage and other rooms.

There’s around four floors of parking, which future tenants can rent for $350 + GST per month.


This Orchard Towers business space is put up for sale at a guide price of $14 million, which works out to be about $5,300 psf. In comparison, according to a March 2014 data, office spaces in Orchard Shopping Centre range from $3,242 psf for a 657 sqft unit; while shop units range from $8,040 psf for a 2,239 sqft unit, this during its historical high recorded in October 2010.

 

Amenities

 

As it is conveniently located in the centre of the city along Orchard Road, it is close to a wide array of amenities. These include specialist business support services, fitness centre, meeting facilities, business hotels with facilities, serviced apartments, banks, childcare, pre-school centres, food centres, and eateries together with a wide selection of retail and dining options.

Orchard Towers is easily accessible via the Orchard MRT station and various bus-stops with close proximity to the building. Also nearby are the Somerset MRT and Newton MRT Stations. For those who drive, there are 361 car park lots available, so parking is easy.


With its prime location along the Orchard Road shopping belt, Orchard Towers is an excellent choice for investors looking for a centralised commercial property for rental income and long-term potential growth.


 

Holland Road Shopping Centre

 

The Urban Redevelopment Authority’s (URA) draft Master Plan 2014 revealed that Holland Village will be further developed as an “identity node”, which means it will not lose the charm and ambience that entice so many visitors , both tourists and locals.


Holland Village has garnered a reputation for being a creative commune and an incubator for local artists, musicians and entrepreneurs. The main stretch of Holland Village along Lorong Mambong exudes a subtle European charm, and is a trove of al fresco cafes, restaurants and popular lifestyle outlets. With the current development of One Holland Village, this neighbourhood is about to become even more hip and trendy.


In the middle of it all is the Holland Road Shopping Centre, an icon for Holland Village. Located at 211 Holland Avenue in the prestigious district 10, Holland Road Shopping Centre is primarily a building for retail trade.


 

The Property

 

A unit situated at the top floor of the Holland Road Shopping Centre is currently on sale. The 7,094-square feet freehold property at present houses a childcare centre tenant. Prior to its current tenant, this property used to be a café with an al-fresco dining area—potential F&B joints have a highly sought-after investment value.


From the third floor, the unit is easily accessible through a dedicated escalator. Entrance and lobby to the unit can fit an office foyer and waiting area.


Exploring the whole unit just confirmed our expectation of seeing numerous spacious rooms and even the hallways are long and expansive. There’s also an outdoor playground overlooking Holland Village’s neighbourhood.


This Holland Road Shopping Centre business space is on sale with a guide price of $25 million (approximately $3,525 psf) for a single floor plate.

 

Amenities

 

Here, you can find an array of businesses such as the Cold Storage Supermarket, gifts and novelty shops, art galleries, gourmet takeaways, banks and more.


For food lovers, besides the many cafes, bistros and restaurants, there is the Holland Drive Market and Food Centre where you can find excellent local fare. Located just a short walk away from the Holland Road Shopping centre, along Lorong Mambong, you can find a wide variety local dishes such as claypot rice nasi lemak, wanton noodle, chicken rice and laksa and many more.


Holland Road Shopping Centre is easily accessible via the Holland Village MRT Station, which is along the Circle line. Other MRT stations nearby include Buona Vista MRT Station, Commonwealth MRT Station and Dover MRT Station. There are several bus stops located along Holland Road and getting about by buses is easy. For those who drive, it is connected to the Ayer Rajah Expressway (AYE) and Pan Island Expressway (PIE), which will take you to any part of the island easily. With 468 car park lots available, finding a car park space is really quick and easy.


With the new extension adjacent to Holland Village adding more vibrancy, residents and visitors alike can enjoy and better appreciate the unique charm of Holland Village.

 

Please share your interest with us via WhatsApp (+65 8833 2829) or complete the enquiry form below.


To learn more about the Orchard Towers Freehold Unit, click here. For the Holland Road Shopping Centre Freehold Penthouse Unit, click here.


Our Team will be in touch with you to share more about this property before scheduling a private viewing.


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