A rare freehold 15-room loft hotel, located at 739-1 Geylang Road in District 14, is now available for purchase at $14 million. This two-storey property, with a newly constructed four-storey rear extension, sits on a 1,273 sq ft land and boasts a gross floor area of 3,186 sq ft. What makes this hotel even more appealing is its permanent “Hotel” zoning and usage approval, a highly coveted designation for new conservation shophouses in Singapore. This approval not only enhances the property’s investment value but also provides flexibility in its operations. Additionally, its prime location just a five-minute walk from Paya Lebar MRT station offers unparalleled connectivity, as the dual-line station serves both the East-West and Circle lines, allowing easy access to all parts of the city.
Designed with a sophisticated Japandi theme, the hotel is currently under construction and is expected to obtain its Temporary Occupation Permit (TOP) in Q2 2025. The sale price is all-inclusive, covering construction and renovation costs, making it a turnkey investment opportunity for those looking to enter or expand their presence in the hospitality industry. For investors, this property presents an attractive proposition as the current owner, an experienced hotel operator, is open to a sale and leaseback arrangement. This means immediate rental income and operational continuity for the new owner. Senior Marketing Director of ERA Realty Network Pte. Ltd., Eva Lau, believes that this hotel will also appeal to owner operators as major renovations have been completed, allowing for a seamless commencement of operations.
Over the past year, there has been a steady increase in demand for hospitality assets in Singapore. Notable transactions in the recent past include LHN Group’s acquisition of Pasir Panjang Inn, a 16,626 sq ft site, for $30 million. In early 2020, an 8-storey hotel at 12 Lorong 12 Geylang was listed for sale at $120 million. In addition, Hotel JJH, a 25-room property at 747 North Bridge Road, is now on the market for $38 million. These transactions indicate the strong demand for well-located and high-quality hospitality assets, making them one of the most desirable commercial shophouse usage classes in Singapore.
Investing in a condo requires careful consideration when it comes to financing. Luckily, Singapore provides various mortgage choices, but it’s vital to be knowledgeable about the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on how much loan a borrower can obtain, taking into account their income and current debt responsibilities. To make well-informed decisions regarding their financing, investors should familiarize themselves with the TDSR and seek guidance from financial advisors or mortgage brokers. This is particularly important in order to avoid overstretching themselves financially. Additionally, researching Singapore Projects can also provide valuable information for investors when it comes to financing options.
For more information on this property, please contact Eva Lau at 92785688, Senior Marketing Director of ERA Realty Network Pte. Ltd. (R062169F).