A 999-year leasehold commercial building at 402 North Bridge Road is on the market at the indicative guide price of $70 million. The plot sits at the corner of North Bridge Road and Seah Street, and the building is next to the iconic Raffles Hotel.
Also known as Jun Xin Building, the 3,268 sq ft commercial site has a plot ratio of 4.2, and is developed to its maximum height of up to six stories. The building has an existing gross floor area (GFA) of 17,729 sq ft.
Based on the guide price, this works out to approximately $3,948 per sq ft on the GFA. Exclusively marketed for sale by ETC, the acquisition of this property is open to local and foreign buyers. The transaction will also not attract any additional buyers stamp duty (ABSD) or seller stamp duty (SSD). The property will be sold in an expression of interest (EOI) that closes on June 11.
The prime corner site with dual frontage boasts exceptional street-level visibility within the City Hall-Bugis precinct. The successful buyer will also be offered naming and signage rights to the property.
The property is also close to four MRT stations, namely Bras Basah and Esplanade on the Circle Line, Bugis Interchange on the East-West (EWL) and Downtown Lines, as well as City Hall Interchange on the North-South and EWL.
The sale of 402 North Bridge Road reflects growing investor interest for commercial buildings in the City Hall-Bugis precinct, and buying demand is supported by the limited supply of standalone commercial assets in the city centre.
This part of the city centre is surrounded by historical buildings such as Raffles Hotel, Chijmes, and The Capitol. There are also landmark developments in the vicinity including South Beach, Raffles City, the National Library Building, Bugis Junction, DUO, and Suntec City.
The area has also seen several relatively new developments which have elevated the profile and appeal of this locale. Signature new developments that have made their mark to date include Guoco Midtown, and residential projects like The M.
The newest project will be the redevelopment of Shaw Tower, at 100 Beach Road. The new Grade A office building will inject 435,000 sq ft of prime office space when it is completed by the end of this year.
These new developments have reshaped the precinct, which has continued to evolve as a dynamic commercial, lifestyle and hospitality destination, supported by ongoing rejuvenation and new mixed-use developments, says Swee Shou Fern, Head of Investment Advisory at ETC.
As a result, opportunities to acquire commercial assets, like 402 North Bridge Road, are rare and limited, she says, adding: “We expect interest from owner-occupiers seeking to establish a strong corporate presence, as well as investors looking for a well-located asset with strong long-term investment value”.
The profile of potential buyers for 402 North Bridge Road include family offices, owner-occupiers and boutique funds, says Swee.
Standalone commercial city-centre properties attract keen occupier and investor interest
As commercial investment activity increases across the Asia Pacific region, with a forecasted 5-10% y-o-y increase, investor demand for trophy city assets remains resilient, according to market research by CBRE.
Across this region, investors rank the office sector as a preferred asset class, supported by strong leasing demand as companies seek high-quality buildings in core city locations. This is in spite of trade related volatility brought on by geopolitical tension. With mid-term supply across all sectors projected to contract, investors will be compelled to focus on allocation in individual sectors and property owners on income growth potential.
In developed markets such as Singapore, Tokyo and Korea, where higher construction costs tend to make new office development challenging, office supply is expected to contract further while average city-centre vacancy rates remain low.
As companies venture away from generic office floors towards locations more suited for establishing boutique headquarters, the opportunity for brand visibility in high footfall locations in established precincts such as City Hall arises.
For commercial properties such as office spaces, space planning is a key aspect. As businesses navigate evolving market conditions and operational needs, there is demand for greater flexibility and scenario-based planning when forecasting office space requirements as more fluid business planning becomes necessary.
With occupiers seeking well-managed buildings providing access to a diverse range of amenities, the onus is on property owners to leverage experience-led design and digital enhancements in their properties to remain competitive.
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