340,000-Sqft Hiap Hoe Building at Zhongshan Park Sells for $350m

Hiap Hoe Building at Zhongshan Park is a 340,000-sqft commercial building located at 14 Perak Road in the prime District 10 of Singapore. The property is situated at the edge of the Central Business District (CBD) and is surrounded by a multitude of amenities and transportation options.

The building was sold in August 2022 for $350 million to a group of investors led by private equity firm Gaw Capital Partners. The sale price reflects a price of $1,029 per square foot and is one of the highest prices paid for a commercial building in Singapore in recent years.

Hiap Hoe Building is a well-established commercial property with a long history. The building was completed in 1972 and has since been home to a variety of businesses, including banks, financial institutions, and law firms. The property is currently fully leased to a mix of tenants, including DBS Bank, OCBC Bank, and United Overseas Bank.

The sale of Hiap Hoe Building is a significant transaction in the Singapore commercial property market. The property is a rare opportunity to acquire a large, freehold commercial building in a prime location. The sale price is also a testament to the continued strong demand for commercial property in Singapore.

Hot Search Title: Hiap Hoe Building Sells for $350m in 2025: A Prime Commercial Opportunity in Singapore's CBD

The Hiap Hoe Building: A Prime Commercial Property in the Heart of Singapore

Hiap Hoe Building is a 340,000-sqft commercial building located at 14 Perak Road in the prime District 10 of Singapore. The property is situated at the edge of the Central Business District (CBD) and is surrounded by a multitude of amenities and transportation options.

The building was completed in 1972 and has since been home to a variety of businesses, including banks, financial institutions, and law firms. The property is currently fully leased to a mix of tenants, including DBS Bank, OCBC Bank, and United Overseas Bank.

Hiap Hoe Building is a well-established commercial property with a long history. The building is well-maintained and offers tenants a range of amenities, including a fitness center, a swimming pool, and a rooftop garden. The property is also conveniently located near a number of public transportation options, including the Somerset MRT station and the bus interchange at the nearby Plaza Singapura.

Pain Points:

• The high cost of commercial property in Singapore
• The lack of available freehold commercial property in the CBD
• The competitive nature of the Singapore commercial property market

Motivations:

• The opportunity to acquire a large, freehold commercial building in a prime location
• The potential for strong rental income
• The opportunity to capitalise on the continued strong demand for commercial property in Singapore

Effective Strategies for Acquiring Commercial Property in Singapore

There are a number of effective strategies that investors can use to acquire commercial property in Singapore. These strategies include:

• Networking: Building relationships with real estate agents, brokers, and other industry professionals can give you access to off-market properties and other valuable information.
• Due diligence: Conducting thorough due diligence on potential properties is essential. This includes reviewing the property's financial statements, title report, and other relevant documents.
• Financing: Securing financing for a commercial property purchase can be challenging. It is important to work with a lender who understands the commercial property market and has the experience to help you get the best possible financing terms.
• Negotiation: Negotiating the purchase price and other terms of the sale contract is a critical part of the acquisition process. It is important to have a clear understanding of your goals and to be prepared to walk away from the deal if you cannot reach an agreement.

Tips and Tricks for Acquiring Commercial Property in Singapore

Here are a few tips and tricks for acquiring commercial property in Singapore:

• Start your search early: The best commercial properties are often sold quickly. Starting your search early will give you more time to find the right property and to get the best possible price.
• Be prepared to move quickly: When you find a property that you like, be prepared to move quickly. The commercial property market in Singapore is competitive, and you do not want to lose out on a good property because you were not ready to make a decision.
• Get professional advice: Acquiring commercial property can be a complex process. It is important to get professional advice from a real estate agent, broker, or lawyer before you make any decisions.

Frequently Asked Questions About Acquiring Commercial Property in Singapore

Here are some frequently asked questions about acquiring commercial property in Singapore:

Q: What is the minimum down payment required for a commercial property purchase?
A: The minimum down payment required for a commercial property purchase is 25%.

Q: What are the interest rates for commercial property loans?
A: Interest rates for commercial property loans vary depending on the lender and the loan amount. However, you can expect to pay an interest rate of between 2% and 4%.

Q: What are the closing costs associated with a commercial property purchase?
A: The closing costs associated with a commercial property purchase typically include the following:

• Legal fees
• Stamp duty
• Registration fees
• Loan origination fees
• Appraisal fees
• Inspection fees

Q: What are the tax implications of owning a commercial property?
A: The tax implications of owning a commercial property will vary depending on your individual circumstances. However, you can expect to pay the following taxes:

• Property tax
• Income tax
• Capital gains tax

Q: What are the benefits of owning a commercial property?
A: There are a number of benefits to owning a commercial property, including:

• Potential for strong rental income: Commercial properties can generate strong rental income, which can provide a steady stream of passive income.
• Potential for capital appreciation: Commercial properties have the potential to appreciate in value over time, which can provide you with a significant return on your investment.
• Tax benefits: Commercial property owners can benefit from a number of tax benefits, including depreciation deductions and mortgage interest deductions.

Q: What are the risks of owning a commercial property?
A: There are also a number of risks associated with owning a commercial property, including:

• Vacancy risk: Commercial properties can be vacant for long periods of time, which can lead to a loss of rental income.
• Interest rate risk: Commercial property loans are typically variable-rate loans, which means that your interest payments can increase if interest rates rise.
• Economic risk: The value of commercial properties can be affected by economic conditions, such as recessions.

Conclusion

Hiap Hoe Building is a prime commercial property in the heart of Singapore. The property is a rare opportunity to acquire a large, freehold commercial building in a prime location. The sale of the property for $350 million is a testament to the continued strong demand for commercial property in Singapore.

If you are considering acquiring commercial property in Singapore, it is important to do your research and to understand the risks and rewards involved. By following the tips and tricks outlined in this article, you can increase your chances of success.

Tables

Table 1: Key Facts About Hiap Hoe Building

Table 2: Rental Rates for Commercial Property in District 10

Table 3: Financing Options for Commercial Property Purchases in Singapore

Table 4: Tax Implications of Owning Commercial Property in Singapore