Type

Units

Min Area

Price Range

Other

4402 sqft

S$9.5M

Property Highlights

Commercial development with 1 unit currently available.
Prices currently start from S$9.5M.
For Singaporean second property buyers, ABSD applies at 20% of the purchase price, approximately S$1.9M on this acquisition.
Located 1 min (110 m) from EW13 City Hall MRT Station.

Price Trends & Rental Yield

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Commercial Units with Nightclub License in Singapore's Heart

The intersection of commercial acumen and entertainment opportunity rarely aligns with such precision as it does at this distinctive CBD offering. Located mere minutes from City Hall MRT station (EW13) and Clarke Quay, these dual commercial units represent one of the most compelling niche investments available in Singapore's tightly controlled hospitality and entertainment sector. The property's greatest distinction lies in the possession of a Public Entertainment License for nightclub operations—a regulatory approval that remains exceptionally rare and subject to stringent government oversight.

The Nightclub License Advantage

Singapore's approach to licensing entertainment venues creates a natural scarcity that benefits existing license holders considerably. The Public Entertainment License enabling nightclub operations is not freely granted; it is bound by strict regulatory frameworks, zoning restrictions, and compliance standards that place formidable barriers before new applicants. For investors and owner-operators, this gatekeeping effect transforms the license itself into a defensible asset with genuine competitive moat. The few properties that already hold such licenses command disproportionate market attention from serious buyers, as they circumvent years of regulatory navigation and capital expenditure that would face a new entrant to the sector.

Location and Accessibility

Proximity to City Hall MRT station—positioned just 110 metres away—anchors these units within Singapore's most densely trafficked hospitality corridor. The Central Business District location ensures year-round patronage from both local and international visitors, supported by the immediate vicinity of premium entertainment, fine dining, and lifestyle establishments. Clarke Quay's proximity reinforces the site's position as part of Singapore's recognised entertainment hub, where nightlife, riverfront dining, and social venues cluster to create a self-reinforcing ecosystem of visitor demand. This geographical advantage translates into organic foot traffic without the heavy marketing expenditure required to build awareness in less established hospitality precincts.

Investment Structure and Tenancy Stability

The units arrive with an established tenant in place, eliminating the void-letting risk that plagues many commercial property investments. Multiple lease renewals have been executed, demonstrating the tenant's operational viability and willingness to continue occupancy under agreed commercial terms. This tenancy continuity provides immediate cash flow from acquisition, a feature highly valued by institutional and high-net-worth investors seeking de-risked income streams. The projected rental yield of 4–5% annually compares favourably within the CBD commercial segment, particularly given the scarcity value of the underlying license and the location's premium positioning.

Market Dynamics and Capital Appreciation

Commercial property values in Singapore's CBD, particularly those aligned with hospitality and entertainment use, have demonstrated resilience through multiple economic cycles. The supply of licensed entertainment venues remains tightly controlled by the Urban Redevelopment Authority (URA) and Singapore's licensing bodies, creating a structural supply constraint that supports long-term value preservation. As Singapore continues to market itself as a premier destination for business travel and leisure tourism, demand from operators and investors for licensed entertainment properties is likely to remain robust. The historical trajectory of comparable CBD entertainment properties has shown that well-located, licensed assets tend to appreciate in tandem with broader CBD commercial values, whilst the license premium adds an additional valuation layer that insulates the investment from downward pressure.

Property Specifications and Configuration

The commercial units span approximately 4,402 square feet, providing ample floor area for entertainment operations. The dual unit configuration offers operational flexibility—they may be leased to a single consolidated tenant, operated jointly, or held separately for portfolio diversification. This structural flexibility enhances the property's appeal to a broader investor base and reduces dependency on any single operational scenario. The substantial floor area also permits diverse venue configurations, from intimate lounge environments to larger dance floors with full hospitality infrastructure.

Investor Profile Suitability

These units appeal distinctly to three primary buyer cohorts. Established hospitality operators seeking to expand their entertainment portfolio will find the turnkey nature of the licensed asset attractive, circumventing lengthy regulatory approval processes. High-net-worth investors prioritising diversified passive income appreciate the defensive nature of well-located entertainment real estate and the scarcity premium embedded in the license. Lastly, institutional investors and real estate funds with hospitality sector mandates view such properties as strategic acquisitions that enhance portfolio depth within the experiential economy. The substantial price point reflects the quality of the underlying asset; serious buyers at this level typically conduct extensive due diligence and proceed expeditiously once conviction forms.

Financing and Tax Considerations

Commercial property financing typically extends to 70–75% loan-to-value at prevailing rates, necessitating a meaningful equity contribution. Singapore citizen buyers acquiring a second residential or commercial property may be subject to Additional Buyer's Stamp Duty at 20% of the purchase price, significantly increasing total acquisition cost. Professional tax and financing advice is essential for optimising the purchase structure and understanding cash flow implications over the holding period. The rental yield of 4–5% must be evaluated net of financing costs, maintenance, insurance, and licensing compliance expenses to establish true investment returns.

Regulatory and Compliance Framework

Ownership of a nightclub-licensed property carries compliance obligations that distinguish it from standard commercial property. License holders must ensure continuous adherence to safety codes, operating hours restrictions, noise management protocols, and staffing standards established by the relevant authorities. Failure to maintain compliance can jeopardise the license itself, creating operational and valuation risk. Prospective buyers must conduct thorough due diligence into the current license conditions, any historical violations, and the tenant's track record of regulatory adherence. Professional property legal review is essential to ensure all license documentation is current, transferable, and fully compliant with URA and licensing authority requirements.

Market Positioning and Competitive Context

Commercial entertainment properties in the CBD command premium pricing relative to standard office or retail assets, reflecting the combination of location advantage, regulatory scarcity, and operational profitability potential. The availability of similarly licensed properties remains minimal, limiting direct comparables for valuation benchmarking. Sales data indicates that CBD entertainment properties trade on capitalisation rates ranging from 3–5%, with the higher end typically reserved for newly licensed or recently refurbished assets. The established tenancy and proven operational history of this holding position it competitively within this spectrum, whilst the dual-unit configuration adds structural value that single-unit competitors cannot match.

Strategic Timing and Market Outlook

Singapore's tourism recovery trajectory and the city-state's ongoing positioning as a premier MICE (Meetings, Incentives, Conferences, Exhibitions) destination support continued strength in entertainment and hospitality demand. The CBD location ensures direct exposure to this macro demand driver. As other Asian cities confront travel barriers or regulatory headwinds to their hospitality sectors, Singapore's stable governance and permissive regulatory environment position it favourably for capturing international visitor spend. For investors with a multi-year horizon, the combination of immediate cash flow and underlying capital appreciation potential creates a compelling risk-adjusted return profile.

Frequently Asked Questions

What is the expected rental yield if I purchase these units as an investment property?

The property is offered with an established tenant and documented lease renewals, with projected rental yields of 4–5% annually. This return is calculated on the purchase price and reflects the stable income stream from the existing occupancy. To determine your precise net yield, you must deduct financing costs (at typical LTV of 70–75%), property maintenance, insurance premiums, license compliance and regulatory fees, and any vacancy periods between tenancies. The 4–5% gross yield positions this asset favourably within the CBD commercial segment, particularly given the scarcity value of the nightclub license and the premium location adjacent to City Hall MRT. Professional appraisal and cash flow modelling specific to your financing structure are essential to confirm investment returns aligned with your capital allocation strategy.

How does the psf pricing of these units compare to recent CBD commercial transactions?

At approximately 4,402 square feet and an asking price from S$9.48 million, these units reflect a psf valuation typical of premium CBD entertainment and hospitality properties. Recent CBD commercial transactions for licensed entertainment venues have ranged from S$2,000 to S$2,800 psf depending on location precision, license type, and tenancy stability. The dual-unit configuration and the rare nightclub license command a premium within this range. Direct psf comparisons are challenging because few recently transacted properties carry equivalent entertainment licensing; most CBD sales involve standard office, retail, or dining space. A professional valuation from a CBD-focused commercial agent will benchmark these units against the most recent licensed property transactions and establish whether the asking price reflects fair market value for the specific combination of license type, floor area, and tenancy profile.

What are the ABSD implications if I am a Singapore Citizen buying this as a second property?

Singapore Citizens purchasing a second property—whether residential or commercial—are subject to Additional Buyer's Stamp Duty (ABSD) at the current rate of 20% of the purchase price. On a purchase price of S$9.48 million, ABSD would amount to approximately S$1.896 million, payable at the point of acquisition alongside the standard Buyer's Stamp Duty of 1–4% depending on price bands. This 20% ABSD significantly increases total acquisition cost and must be factored into your investment underwriting and financing requirements. Buyers who are not Singapore Citizens may face different or additional duty structures; professional tax advice should be sought. The ABSD obligation reduces effective purchasing power and must be weighed against the investment return and appreciation potential to establish whether the risk-adjusted return justifies the elevated entry cost.

Are there lease decay or resale value risks I should consider?

These commercial units are sold on commercial terms rather than residential lease arrangements, so traditional HDB or residential lease decay concerns do not apply. However, commercial leases do have finite terms, and the property's value is directly dependent on lease renewal at economic rates. The presence of multiple historical renewals by the current tenant suggests operational viability and willingness to continue, mitigating medium-term lease expiry risk. Upon tenant exit, the property must either attract a new tenant willing to pay comparable rent or face a period of vacancy that depresses returns. The nightclub license itself does not decay and retains transferable value, but its worth is greatest when paired with an operating tenant. Long-term resale value depends on the continued viability of the CBD entertainment market, the regulatory stability of nightclub licensing, and the property's continued ability to attract quality tenants at prevailing market rents. Commercial properties are cyclical, and downturns in hospitality demand can compress rental values and investor appetite.

How does the proximity to City Hall MRT (EW13) affect property demand and capital appreciation?

The location 110 metres from City Hall MRT station is a material demand driver and capital appreciation anchor for these units. MRT accessibility is a first-order determinant of foot traffic and visitor volume for entertainment venues, directly impacting operational profitability and tenant retention. City Hall's position on the East-West Line, combined with interchanges to the North-South and North-East Lines, creates a vast catchment area of workers, residents, and visitors. The immediate vicinity of premier hospitality and dining establishments further reinforces the location's draw. Historically, commercial properties within 200 metres of major MRT interchanges in the CBD have demonstrated superior capital appreciation relative to more remote precincts, typically capturing the full benefit of tourism growth and CBD employment expansion. The MRT proximity acts as an inflation hedge, ensuring that the property retains strong fundamentals regardless of broader real estate cycles. For prospective tenants and owner-operators, the location is non-negotiable; loss of MRT proximity would eliminate the site's competitive positioning, making this a permanent structural advantage.

Are these units suitable for first-time commercial property buyers?

These units are substantially more appropriate for experienced commercial property investors or owner-operators rather than first-time buyers. The entry price of S$9.48 million, combined with the 20% ABSD liability for second-property buyers and financing complexities, requires considerable capital reserves and sophisticated financial planning. Additionally, ownership of a nightclub-licensed property entails operational, regulatory, and compliance responsibilities that are distinct from standard commercial or residential property ownership. First-time investors without existing property holdings may find themselves managing an unfamiliar regulatory regime whilst learning fundamental property management protocols. However, if a first-time buyer has relevant hospitality industry experience, substantial liquid capital, and professional advisory support, the property could serve as a strategic anchor asset in a diversified portfolio. Serious consideration of your risk appetite, capital position, and operational capability is essential before proceeding.

What financing headroom and TDSR constraints should I anticipate at this price point?

Commercial property financing at the S$9.48 million price point typically permits loan-to-value ratios of 70–75%, requiring between S$2.37 million and S$2.84 million in equity contribution from the buyer. At prevailing interest rates of 3.5–4.5% for commercial mortgages, annual debt service on a S$7.11 million loan (at 75% LTV) would range from approximately S$250,000 to S$320,000. Total Debt Service Ratio (TDSR) is calculated against the borrower's total debt obligations and monthly income; most banks cap TDSR at 60% for commercial borrowers. With projected rental income of S$380,000 to S$475,000 annually (at 4–5% yield), the property itself generates modest debt service coverage, meaning your personal income and existing liabilities become critical to financing approval. Buyers with substantial existing mortgage or debt obligations may face TDSR constraints that limit available loan amounts. Securing pre-approval from a commercial lender familiar with hospitality property financing is essential before committing to an offer.

How do these units compare to other licensed entertainment properties in the CBD?

Licensed entertainment properties in the CBD are exceedingly scarce; few comparable sales have transacted in recent years, making precise competitive positioning challenging. However, the market recognises distinct tiers: newly licensed properties command premiums due to operational optionality, whilst established properties with proven long-term tenancies trade at lower prices due to operational constraints but offer immediate cash flow certainty. These units occupy the middle of this spectrum—they carry an established, renewable tenancy without the operational optionality of a new license. Other CBD entertainment properties, when they trade, typically command prices aligned with these units' psf valuation, though single-unit properties may trade at slight discounts due to lower operational scale. The dual-unit configuration is itself a competitive advantage, as it offers flexibility that single-unit properties cannot match. Properties without existing tenancies in the CBD entertainment sector have asked prices 20–30% higher, reflecting the cost of establishing operator relationships and managing extended void periods. From a comparative standpoint, these units represent fair value for an investor seeking established cash flow over optionality.

Which floor levels or unit stacks typically offer the best value in this development?

For nightclub and entertainment venue operations, ground floor or lower-level positioning is strategically superior to upper floors, as it maximises street-level visibility, patron accessibility, and foot traffic conversion. Ground-level units command premium pricing in the hospitality sector because they function as destination anchors that drive pedestrian activity and cross-tenant spillover. If these units include ground-level positioning, that positioning justifies the current asking price and should be viewed as a significant value driver. Mid-level or upper-floor positioning, whilst potentially cheaper in acquisition cost, would materially disadvantage operational performance and tenant appeal. The current asking price should be cross-referenced against the specific floor level and whether the units enjoy ground-level frontage or upper-floor positioning. If the units are ground-floor with street frontage, they represent strong value at the stated price; if positioned higher in the building, further negotiation may be warranted. Professional valuers can quantify the floor-level premium, which typically ranges from 15–25% for entertainment venues depending on building configuration and street activation potential.

What is the future supply pipeline for licensed entertainment properties in the CBD and wider District 01?

Singapore's Urban Redevelopment Authority (URA) exerts strict control over new entertainment venue licensing and CBD zoning designations. The trend over the past decade has favoured consolidated entertainment precincts (such as Clarke Quay and Boat Quay) rather than scattered individual licenses across the CBD. New CBD redevelopment projects typically prioritise office, retail, and residential uses over entertainment venues, constraining future supply of new nightclub-licensed properties. Additionally, the regulatory bar for new nightclub licenses has risen, with stricter noise, safety, and compliance requirements that deter many new operators from seeking entry. This structural supply constraint means that existing licensed properties are likely to appreciate in relative value as the pool of alternatives diminishes. Within District 01 specifically, renewal and redevelopment are ongoing, but any replacement properties are unlikely to significantly increase the stock of nightclub-licensed venues. For long-term investors, this constrained supply pipeline supports the thesis that licensed entertainment real estate in the CBD should maintain capital value and rental appeal over a 10+ year hold period. However, regulatory changes or shifts in hospitality demand could alter this trajectory; professional market monitoring is advisable.

Commercial Unit With Nightclub License — From S$9.5M