Type

Units

Min Area

Price Range

Other

872 sqft

S$1.3M

Property Highlights

Commercial development with 1 unit currently available.
Prices currently start from S$1.3M.
For Singaporean second property buyers, ABSD applies at 20% of the purchase price, approximately S$252K on this acquisition.
Located 10 min (820 m) from EW17 Tiong Bahru MRT Station.

Price Trends & Rental Yield

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116 Jalan Bukit Merah: A Commercial Investment Opportunity in Tiong Bahru

116 Jalan Bukit Merah stands as a compelling addition to Singapore's commercial real estate market, offering buyers and investors a strategically positioned asset in one of the island's most dynamic mixed-use districts. Situated within the Outram Planning Area, this commercial property enjoys proximity to the iconic Tiong Bahru estate, a neighbourhood increasingly recognised for its blend of heritage charm and contemporary economic vitality. The development presents units starting from S$1.26 million, positioning it as an accessible entry point for investors seeking exposure to Singapore's commercial property sector without the capital outlay demanded by prime central locations.

The property's location on Jalan Bukit Merah places it approximately 10 minutes' walk—some 820 metres—from EW17 Tiong Bahru MRT Station. This proximity to mass rapid transit infrastructure is a fundamental advantage for any commercial property, as it enhances foot traffic, tenant appeal, and long-term demand for leasing. The station serves the East–West Line, one of Singapore's busiest mass transit corridors, connecting the development to the broader Central Business District and surrounding residential precincts. Such MRT accessibility substantially elevates the property's value proposition for F&B operators, retail tenants, and service-oriented businesses seeking a location with reliable customer and employee flow.

Physical Specifications and Condition

Units at 116 Jalan Bukit Merah feature ground-floor positioning, a hallmark advantage for commercial operations that depend on street visibility and walk-in clientele. The development is characterised by wide frontage, allowing tenants to create distinctive storefronts and signage that captures passing attention. Individual units span approximately 872 square feet, a practical size that suits a range of commercial models—from independent cafés and boutique service providers to small professional offices and retail showrooms. All units have undergone comprehensive renovation to A1 condition, eliminating the need for incoming tenants or owner-occupiers to incur immediate refurbishment costs. This ready-to-occupy status is a material benefit in a competitive leasing market where downtime directly impacts investor returns.

Parking represents a consistent operational headache for Singapore's commercial tenants and their customers. The development benefits from ample parking allocation, a feature that substantially elevates its appeal relative to older commercial stock in the immediate vicinity. This parking infrastructure supports both customer experience and employee convenience, two factors that influence tenant retention and the achievable rental rates.

Tax and Buyer Dynamics

A defining characteristic of 116 Jalan Bukit Merah is its classification as pure commercial property. This status shields buyer-investors from Additional Buyer's Stamp Duty, a consideration of material significance. For a Singapore Citizen or Permanent Resident purchasing a second residential property, ABSD operates at 20%, materially increasing the true cost of acquisition. Commercial property purchases incur no such duty, allowing capital to extend further and simplifying the purchase journey for those already holding residential assets. This tax efficiency is particularly relevant for high-net-worth individuals and sophisticated property investors managing diversified portfolios, as it allows them to acquire commercial exposure without the residual burden of residential property holding costs.

Investment Case and Neighbourhood Context

The Tiong Bahru neighbourhood has undergone notable evolution over the past decade, transitioning from a purely residential conservation area into a mixed-use precinct that attracts both locals and broader affluent demographics seeking dining, retail, and leisure experiences. This transformation has driven demand for quality commercial space, supporting both rental uptake and capital appreciation for well-positioned assets. The immediate vicinity features established food and beverage establishments, including well-regarded seafood restaurants and contemporary dining concepts, validating the area's commercial vitality and tenant demand base.

For investors evaluating commercial property opportunities, the risk-return profile at 116 Jalan Bukit Merah deserves serious consideration. Commercial yields in accessible secondary locations have remained resilient, with quality properties commanding tenant interest and supporting mid-to-high single-digit rental yields. The ground-floor positioning and wide frontage enhance tenant appeal relative to upper-floor or secondary frontage arrangements, historically correlating with faster tenant acquisition and more resilient rental income.

Buyer Suitability and Financing Considerations

The development appeals to several buyer archetypes. High-net-worth individuals seeking portfolio diversification into Singapore's commercial sector—particularly those already holding residential assets who wish to avoid ABSD—find compelling logic in the offering. Owner-occupiers planning to operate independent businesses benefit from the move-in readiness and prime foot-traffic positioning. Property investors with dedicated real estate strategies appreciate the transparency of a pure commercial asset, unencumbered by residential tax complications or emotional attachment to owner-occupancy.

From a financing perspective, commercial property loans typically operate under slightly different parameters than residential mortgages. Banks generally offer loan-to-value ratios ranging from 70% to 80% for established commercial properties in accessible locations, meaning purchasers should budget for down payments of 20% to 30%. At the S$1.26 million entry point, this translates to equity requirements of approximately S$250,000 to S$380,000. Debt servicing ratios for commercial acquisitions are often assessed more conservatively than residential purchases, reflecting the higher perceived risk of commercial tenancy disruption. Prospective buyers should engage their lender early to confirm financing headroom and avoid disappointment at the final application stage.

Market Context and Competitive Positioning

Commercial property prices in the Outram and Central Areas have demonstrated steady appreciation, supported by limited new supply and persistent tenant demand from growth-oriented businesses. Per-square-foot pricing for quality ground-floor commercial units in accessible secondary locations typically ranges from S$1,400 to S$2,000 per square foot, depending on immediate neighbourhood profile and frontage quality. The development's pricing implies a per-square-foot rate within this realistic band, suggesting competitive positioning relative to recent transaction evidence in the broader district. Properties with similar ground-floor positioning and MRT proximity have transacted strongly, indicating sustained investor and occupier demand for such assets.

Future Considerations

The commercial real estate sector remains an essential component of Singapore's economic geography, supporting everything from independent entrepreneurship to multinational operations. While residential property development in the broader Central Area faces space constraints and planning restrictions, commercial property continues to benefit from economic growth, business expansion, and evolving consumer preferences toward localised, neighbourhood-based retail and hospitality experiences. This long-cycle structural support underpins the investment case for well-positioned commercial assets such as those offered at 116 Jalan Bukit Merah.

For enquiries regarding specific unit availability, pricing details, and site visits, prospective buyers are encouraged to contact the listing team directly. The development presents a time-sensitive opportunity in a neighbourhood experiencing material commercial momentum, warranting thorough due diligence and prompt action for serious investors.

Frequently Asked Questions

What is the estimated rental yield for commercial properties at 116 Jalan Bukit Merah?

Commercial properties in the Tiong Bahru and Outram area typically deliver gross rental yields ranging from 4% to 6% per annum, depending on unit condition, frontage quality, and tenant profile. Ground-floor units with wide frontage—such as those available at 116 Jalan Bukit Merah—typically command stronger tenant demand and support rental rates at the upper end of this range. Owner-occupiers and investors should model specific tenant income based on their operational model; F&B operations, for instance, may operate on tighter margins than professional services, impacting the effective yield calculation. The property's move-in condition and ample parking support faster tenant acquisition, which typically reduces vacancy periods and supports more stable, higher yields relative to properties requiring refurbishment.

How does the per-square-foot pricing at 116 Jalan Bukit Merah compare to recent transactions in the Tiong Bahru area?

At approximately S$1,450 per square foot based on the entry price of S$1.26 million for an 872 square-foot unit, 116 Jalan Bukit Merah is positioned competitively within recent secondary commercial market activity. Ground-floor commercial units in the immediate district have transacted between S$1,400 and S$2,000 per square foot over the past 18 to 24 months, reflecting variation in frontage quality, condition, parking allocation, and proximity to MRT infrastructure. The development's pricing sits towards the accessible end of this spectrum, suggesting strong value positioning relative to properties with similar specifications, though investors should verify comparable transactional evidence through professional appraisals. Properties with less favourable foot-traffic positioning or upper-floor placement typically achieve lower per-square-foot rates, reinforcing the premium associated with ground-floor, wide-frontage positioning at this address.

Does ABSD apply to commercial property purchases at 116 Jalan Bukit Merah?

No. Additional Buyer's Stamp Duty does not apply to commercial property purchases, regardless of the buyer's residential property holdings. This is a material advantage for investors already holding residential properties, as it eliminates a significant acquisition cost that would otherwise apply to second or subsequent residential purchases. For context, a Singapore Citizen purchasing a second residential property incurs ABSD at 20% of the purchase price—a considerable tax burden that materially increases the true cost of acquisition. By acquiring commercial property instead, investors eliminate this tax burden entirely, allowing capital to stretch further and simplifying acquisition structuring. This tax efficiency makes 116 Jalan Bukit Merah particularly attractive to high-net-worth individuals and sophisticated investors managing diversified property portfolios who wish to add commercial exposure without accepting the residential ABSD penalty.

What is the lease tenure, and how does it affect long-term investment prospects?

Commercial properties in Singapore typically operate on leasehold tenure, with the specific duration dependent on the underlying land grant. The property's lease tenure should be confirmed through the official title documentation and legal searches prior to purchase. Unlike residential properties where lease decay becomes a significant factor (particularly below 70 years), commercial properties generally experience less pronounced capital value deterioration as lease duration shortens, provided the lease extends beyond 30 years. Investors should request a formal legal opinion on the lease tenure and understand any renewal or extension provisions available under the Enhancements for Ageing Properties scheme or other government initiatives. For commercial owner-occupiers, a longer remaining lease (ideally 60 years or more) provides operational certainty, whilst investors may accept shorter remaining terms if rental yields are sufficiently compelling to compensate for eventual lease expiration risk.

How does proximity to Tiong Bahru MRT Station influence tenant demand and capital appreciation?

MRT proximity is a fundamental driver of commercial property demand and value appreciation. 116 Jalan Bukit Merah's position 10 minutes walk from EW17 Tiong Bahru MRT Station, situated on the East–West Line, confers substantial advantages for both tenant recruitment and customer accessibility. Businesses operating from the property benefit from reliable foot traffic flowing to and from one of Singapore's busiest mass transit corridors, supporting both retail operations and professional service tenants seeking high-visibility locations. Historically, commercial properties within 5 to 10 minutes' walk of established MRT stations experience stronger rental demand, lower vacancy periods, and more resilient capital values compared to properties requiring car access or longer walking distances. The Tiong Bahru station serves the broader Central Area, connecting the property to the CBD, southern residential precincts, and employment concentrations, substantially enhancing its appeal to both local and cross-district clientele. This accessibility typically supports 10% to 20% premium valuations relative to otherwise similar properties without proximate MRT infrastructure.

Which buyer profiles are best suited to invest in properties at 116 Jalan Bukit Merah?

The development appeals to multiple buyer archetypes, each with distinct motivations and expected holding horizons. High-net-worth individuals with established residential portfolios find compelling logic in commercial acquisition, as it provides portfolio diversification whilst avoiding the 20% ABSD burden that would apply to a second residential property purchase. Professional investors with dedicated real estate strategies appreciate the transparency and income characteristics of pure commercial assets, unencumbered by residential regulatory complexities or owner-occupancy emotional factors. Owner-occupiers planning to launch or expand independent businesses—particularly F&B, retail, or professional service operators—benefit from the move-in condition, ground-floor positioning, and ample parking that support operational efficiency from day one. Mid-career professionals seeking to establish professional practices (accounting, consulting, legal services) value the proximity to MRT, visible street frontage, and professional neighbourhood context. Even long-term family office investors or retirement-focused buyers may consider the development as a capital-appreciation and income-generation asset, provided they structure financing and tenant management appropriately.

What are the financing requirements and loan-to-value implications for commercial property buyers?

Commercial property financing operates under different parameters than residential mortgages, typically offering loan-to-value ratios between 70% and 80% for established commercial assets in accessible locations. At the S$1.26 million entry price point, this implies equity down-payment requirements of approximately S$250,000 to S$380,000, depending on the lender's risk assessment and the buyer's credit profile. Debt servicing ratios for commercial acquisitions are often assessed conservatively—sometimes as tight as 30% of net rental income—reflecting perceived higher tenant disruption risk compared to owner-occupied residential property. Buyers should engage their preferred lender early to confirm financing headroom, particularly if planning to leverage existing residential assets as collateral or if cash flow from other sources is limited. Interest rates on commercial loans typically track slightly above residential rates, with many lenders offering terms between 2.5% and 3.5% depending on tenure and market conditions. A S$1 million loan at 3.0% over 20 years produces monthly repayments of approximately S$4,660, so purchasers should model rental income expectations against anticipated debt service and operating expenses.

How does 116 Jalan Bukit Merah compare to nearby competing commercial developments?

The commercial property market in Outram and the broader Central Area includes several competing properties and developments, each with distinct advantages. Comparable ground-floor commercial units in the immediate vicinity typically feature similar per-square-foot pricing but may lack equivalent parking allocation, recent renovation quality, or MRT proximity that 116 Jalan Bukit Merah offers. Properties deeper within Tiong Bahru conservation estate may command premium positioning due to heritage appeal and high-end tenant concentration, though they typically achieve lower parking ratios and face steeper regulatory restrictions on commercial use. Conversely, properties further from MRT infrastructure or positioned in less visible secondary locations typically transact at 10% to 20% discounts relative to 116 Jalan Bukit Merah's pricing, reflecting reduced walk-in foot traffic and limited tenant demand. The development's combination of ground-floor placement, wide frontage, A1 renovation condition, ample parking, and direct MRT accessibility positions it competitively within the secondary commercial market, typically attracting faster tenant acquisition and more resilient rental income relative to less optimally configured alternatives.

What are the best strategies for identifying highest-value unit positions within the development?

Within 116 Jalan Bukit Merah, unit-level value is primarily determined by frontage quality, width, parking allocation, and visibility to foot traffic rather than floor level (as the development emphasises ground-floor positioning). Units with direct street frontage spanning the full width of the allocation command premium positioning and tenant demand, particularly if windows and entrance doors create obvious, inviting access. Units positioned at or near main road intersections or high-traffic pedestrian flows typically support higher rental rates and faster tenant acquisition. Parking allocation per unit—whether dedicated or shared—materially influences tenant satisfaction and should be factored into yield calculations; units with superior parking access to customer and employee requirements typically support stronger rental economics. Investors should physically inspect multiple unit configurations to understand sightlines, foot traffic patterns, and operational logistics; a narrower, deeper unit positioned away from main foot-traffic flows may price attractively but deliver weaker rental returns relative to a wider unit with prominent visibility. Professional appraisals should compare recent transactional evidence for similar configurations, as positioning variations can generate 10% to 25% differences in achievable rental income and capital value.

What is the development pipeline outlook for commercial property supply in the Outram and Central Area?

Singapore's Central Area commercial property development faces structural supply constraints, as available land is limited and competing residential and mixed-use demands consume scarce sites. Recent government planning decisions have emphasised intensification of existing precincts and adaptive reuse of aging commercial stock rather than large-scale new commercial development. The Outram and Tiong Bahru neighbourhood, in particular, is experiencing gentrification and commercial activation driven by population growth, evolving consumer preferences toward neighbourhood-based retail and hospitality, and relatively constrained new supply. This long-cycle supply constraint supports sustained investor demand for quality secondary commercial properties such as those offered at 116 Jalan Bukit Merah, as viable tenant income opportunities remain attractive relative to residential property yields. Medium-term supply risk appears limited, though investors should monitor government policy on adaptive reuse, mixed-use zoning, and potential conservation area expansions that might restrict future commercial development or tenancy flexibility. The neighbourhood's positioning as a cultural and lifestyle destination (driven by heritage tourism, independent F&B concepts, and creative industries) suggests enduring commercial vitality and modest long-term supply risk, supporting reasonably confident capital appreciation expectations over 10-year-plus investment horizons.

Commercial At 116 Jalan Bukit Merah — From S$1.3M