An exceptional opportunity has emerged in the heart of District 14, as a freehold 15 loft-room hotel at 739-1 Geylang Road is now available for purchase at $14 million. This 2-storey property, along with a newly added 4-storey extension, sits on a 1,273 sq ft plot and boasts of an approved gross floor area (GFA) of up to 3,186 sq ft.
As you contemplate investing in a condo, it is crucial to also evaluate the potential rental yield. Rental yield refers to the yearly rental income as a percentage of the property’s buying price. In Singapore, rental yields for condos can fluctuate greatly depending on factors like location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, offer more favorable rental yields. To gain clarity on the rental potential of a specific condo, conducting comprehensive market research and seeking advice from real estate agents is essential. Additionally, checking out Singapore Projects can also provide valuable insights.
One of the most remarkable features of this hotel is that it holds a permanent ‘Hotel’ zoning and usage approval, an uncommon and highly sought-after classification in Singapore. This approval further elevates the property’s investment appeal and operational flexibility. Additionally, its prime location, just a 5-minute walk from the Paya Lebar MRT station, offers excellent connectivity. Paya Lebar MRT is a dual-line station, serving the East-West line and Circle line, making it easy for guests to access various parts of Singapore seamlessly.
Incorporating a refined Japandi theme, construction of the hotel is currently underway and is expected to receive its Temporary Occupation Permit (TOP) in Q2 2025. The sale price is all-inclusive, covering all construction and renovation expenses, making it a turnkey investment perfect for those looking to establish or expand their presence in the hospitality industry.
For investors, this property presents a highly attractive opportunity. The current owner, an experienced hotel operator, is open to a sale and leaseback arrangement. This offers the advantage of receiving immediate rental income and ensuring operational continuity. Senior Marketing Director of ERA Realty Network Pte. Ltd., Eva Lau, anticipates that this hotel will appeal to owner-operators. The renovations already in progress will allow for a smooth and swift commencement of operations.
Over the past year, the demand for hospitality assets in Singapore has steadily increased. Some significant transactions include LHN Group’s purchase of Pasir Panjang Inn, a 16,626 sq ft property, for $30 million. In early 2020, an 8-storey hotel at 12 Lorong 12 Geylang was put up for sale at $120 million. Moreover, Hotel JJH, a 25-room establishment at 747 North Bridge Road, is now on the market for $38 million. These trends highlight the strong demand for well-situated, top-quality hospitality properties, which are regarded as one of the most desirable commercial shophouse usage types in Singapore.
For more details, contact Eva Lau at 92785688, Senior Marketing Director (R062169F) of ERA Realty Network Pte. Ltd.
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