A four-storey mixed-use building along River Valley Road for sale at guide price of S$24 million is compelling for a freehold boutique property in District 9
CBRE announced on August 5th that it is pleased to launch for sale by Expression of Interest a four-storey mixed-use building at 286 & 288 River Valley Road.
Interested buyers of the four-storey mixed-use building are invited to submit their offers to CBRE by 30 September 2020 at 3pm.
The four-storey mixed-use building sits on a freehold site of approximately 4,180 square feet, which is zoned for “Residential with Commercial Use at the 1st storey” according to the 2019 Master Plan. Based on the existing plot ratio of 2.8, the four-storey mixed-use building has a total built-up area of approximately 11,660 square feet. The two ground-floor units are currently occupied by beauty services salons. The four-storey mixed-use building also comprises six mechanical carpark lots.
Strategically located along River Valley Road that connects the vicinity to the Central Business District and Orchard Road, 286 and 288 River Valley also enjoys high visibility with its prominent main road frontage of approximately 12 meters. The guide price for the four-storey mixed-use building is S$24 million, which works out to approximately S$5,742 per square foot on land area.
Mr Michael Tay, Head of Capital Markets, Singapore at CBRE says, “The property features compelling attributes such as a freehold tenure, regular layout and a prime location in District 9. Considering the palatable guide price for these attributes, we are optimistic that 286 and 288 River Valley Road will attract the interest of both owner occupiers and investors who take on a medium- to long-term real estate investment view.”
Mr Tay adds, “While the successful buyer will enjoy an immediate turnkey income-producing asset, he or she can also consider a potential change of use for the property or alteration works in the near future, subject to relevant authorities’ approval. For instance, the upper floors can be changed to accommodate serviced apartments or student hostel, while some other potential uses for the ground-floor units can be a clinic, a childcare centre or a restaurant.”
Located about 400 meters from Fort Canning MRT station, the four-storey mixed-use building is also within walking distance to Fort Canning Park and Robertson Quay. Nearby landmarks include UE Square Mall and Liang Court which is in the midst of transforming into an integrated development comprising commercial, hotel and serviced apartments components.
Coupled with further rejuvenation plans underway along the Singapore River to improve pedestrian accessibility and to increase footfall, the value of real estate in the vicinity is expected to be enhanced.
CBRE is the exclusive marketing agent for the four-storey mixed-use building at 286 & 288 River Valley Road.
River Valley is a planning area located within the Central Area of the Central Region of Singapore. The planning area shares boundaries with Orchard in the north, Museum in the east, Tanglin in the west and Singapore River in the south. River Valley in central Singapore is a mixed-use area comprising residential, commercial and leisure developments. It was so named because the area lay in a valley between Fort Canning Hill and Pearl’s Hill.
River Valley Road, a historic urban waterfront along Singapore River is a vibrant, lifestyle destination offering a good mix of hotel, commercial, entertainment and residential uses, housed in a charming mix of old shophouses and new developments.
Redevelopment of River Valley began in the 1960s with a clean-up of the polluted Singapore River. In 1969, then Prime Minister Lee Kuan Yew tasked the Public Works Department and the Public Utilities Board to develop a plan to clean up the river and Singapore’s waterways. By 1983, all the lighter companies were moved from the banks of the Singapore River, as were squatters and hawkers. A major clean-up operation was then implemented.
Under the Urban Redevelopment Authority’s 1991 Concept Plan, the Clarke Quay and Robertson Quay areas along River Valley Road were zoned for entertainment, residential and hotel accommodation purposes. During the 1990s, numerous private condominiums were also built along River Valley Road.
Mr Paul, chief mortgage officer at iCompareLoan, said that “although the Covid-19 pandemic makes real estate sales difficult at the moment, the four storey mixed used development at River Valley Road for sale is in a good location and is hard to come by.” Mr Ho believes smart investors who are flush with cash, will resort to value hunting instead of choosing real estate which are still selling at unbelievable prices.
Mr Ho added that given the land scarcity in Singapore, demand for mixed use development in Singapore will continue to rise over the long term. He pointed out that Singapore continues to be a global financial centre and a trade hub with high livability scores – all of which attracts high net worth investors to the Republic. All these factors will inevitably fuel demand for commercial property in Singapore he added.
Mr Ho believes that value buys in the property market right now are are landed inter-terrace houses which’s per square feet price on the built-up area is usually less than $1,000 and commercial properties. But Mr Ho cautioned that the bigger challenge for buyers of commercial property is securing the best commercial loans.
“With the right loan, the buyer can save thousands, if not tens of thousands of dollars,” he said. Adding, “which is why they would have to work with established mortgage brokers who can provide them free service.”