Ravi Chandran
Baghdad Street adjoining conservation shophouses launched for sale by way of an Expression of Interest
- The three Adjoining Conservation Shophouses in the Heart of Kampong Glam for Sale at S$7.64 Million
CBRE announced on September 30 that it is launching for sale a row of three contiguous prime shophouses located at 14, 16 and 18 Baghdad Street, right in the heart of the Kampong Glam Conservation Area. The sale will be by way of an Expression of Interest, which closes on 6 November 2020.
CBRE is the sole marketing agent for the Baghdad Street adjoining conservation shophouses.
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The total floor area of the Baghdad Street adjoining conservation shophouses is approximately 2,548 square feet. Enjoying a wide road frontage onto Baghdad Street with high visibility, the three Baghdad Street adjoining conservation shophouses occupy a combined land area of approximately 1,605 square feet, with a tenure balance of 74 years.
The three Baghdad Street adjoining conservation shophouses are held under an individual land title.
To be sold as an entirety, the three Baghdad Street adjoining conservation shophouses command an indicative price of approximately S$7.64 million, which works out to approximately S$3,000 per square foot. As the Baghdad Street adjoining conservation shophouses are sitting on a site that is zoned full ‘Commercial’ within the Kampong Glam Conservation Area under the 2019 Master Plan, there will be no Additional Buyers’ Stamp Duty or Sellers’ Stamp Duty. The opportunity is open to both local and foreign buyers.
Clemence Lee, Senior Director, Capital Markets, Singapore at CBRE says, “Kampong Glam has evolved from an area of rich history revolving around the Muslim community in Singapore and activities focusing on textile trade to one that now exudes ethnic hipster vibes that is drawing an increasingly young and diverse group of visitors. Coupled with the ongoing rejuvenation projects such as Guoco Midtown that will propel the vicinity’s transformation into the next hotspot for live-work-play offerings, we are confident that the shophouses will garner strong interest from both astute investors and owner-occupiers who are looking to capitalize on these aspects to enjoy capital and rental upsides in the near future.”
He continues, “Meanwhile, the successful buyer can enjoy immediate rental income as the shophouses are currently fully tenanted by F&B and take-away food establishments, wellness and convenience stores. The subject property also presents flexibility to owner occupiers if they wish to configure the space and maximise usage that are potentially ideal for shops, F&B offerings and gym/fitness centres, subject to authorities’ approval.”
14, 16 and 18 Baghdad Street are located within the heart of Kampong Glam historic district, which is a and eclectic hub offering a diverse mix of cultural, entertainment, F&B and lifestyle attractions frequented by both locals and tourists. Nearby landmarks include Sultan Mosque, Istana Kampong Glam, DUO, City Gate, The Concourse and the upcoming Guoco Midtown.
Baghdad Street is a street in Kampong Glam, Singapore. Like nearby Arab Street, the name of the street reflects the Arabic influence in that area of Singapore. It is lined with traditional shophouses. Well positioned in the Ophir-Rochor corridor that forms a natural extension to the financial districts of Raffles Place and Marina Bay.
Mr Paul Ho, chief mortgage officer at iCompareLoan, said: “the three Baghdad Street adjoining conservation shophouses represent a rare opportunity to acquire a row of adjoining shophouses with prominent road frontage that will provide the buyer with the flexibility and creativity to configure the space to their requirements.”
He added: “This may also be an attractive opportunity for investors to acquire a commercial asset that provides immediate rental income, unlock further capital values of the asset and capitalize on a strong rental upside due to the diverse range of entertainment, cultural and lifestyle attractions in this area.”
Despite the uncertainties surrounding Covid-19 pandemic, the US presidential election in November and the international trade tensions, Singapore is still an attractive residential market for investors. Although the property market exuberance has been curbed to some extent with the property cooling measures introduced last year, Singapore as a property market investment destination still remains among the top – shoulder to shoulder with other cities in the world like London, New York, Shanghai and Sydney.
“We have to be mindful that there is a lot of excess capital fluidity here and at 1.9 – 2 percent, Singapore has one of the lowest interest rates for home loans in the region,” Mr Ho added.
Kampong Glam is a neighbourhood and ethnic enclave in Singapore. It is located north of the Singapore River, in the planning area of Rochor, known as the Malay-Muslim quarter. Kampong Glam still retains strong ties to the Native-Malay and Muslim community and has sometimes been termed the “Muslim Quarter” due to its history. The Muslim population still remains a significant presence in Kampong Glam.
The area remains a centre for Muslim activities and the Sultan Mosque remains a major landmark and congregation point for the Singapore Muslims.
Like Little India and Chinatown, Kampong Glam has been restored, refurbished and new life breathed into it, bringing back the former colour and vibrancy of the area. Rows of conserved shophouses can be found in Haji Lane, Arab Street, Baghdad Street and Bussorah Street. Many of these shophouses have new tenants such as design and IT firms, art galleries, crafts and curiosity shops, food caterers, cafes, bars and restaurants.
They blend in with traditional businesses like textile and carpet shops, blacksmiths and shops selling religious items used by Muslims. It is also an area of good restaurants, from Malaysian coffee shops and bakeries to fine modern European dining.
