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 Dual Units with Nightclub License at Coleman Street, Singapore CBD

Few commercial properties in Singapore command the rarity and strategic value of a Public Entertainment License for nightclub operations. This exceptional offering presents two side-by-side commercial units totalling 4,402 square feet in one of the city's most coveted addresses: Coleman Street, mere steps from both City Hall MRT station and the thriving Clarke Quay entertainment corridor. The combination of premium location, established tenancy, and the highly sought-after nightclub license creates an investment thesis that appeals equally to seasoned property investors and high-net-worth individuals seeking trophy assets within Singapore's hospitality sector.

Unmatched Location and Market Position

Coleman Street sits at the epicentre of Singapore's Central Business District, where commercial vibrancy and leisure converge. The proximity to City Hall MRT station—just a 110-metre walk or approximately one minute on foot—ensures that these units benefit from constant foot traffic, commuter visibility, and ease of access that few other commercial properties can replicate. The neighbouring Clarke Quay precinct reinforces this advantage, as it remains one of Asia's premier entertainment and hospitality destinations, drawing both local patrons and international visitors throughout the year.

The zoning classification as commercial, coupled with the existing Public Entertainment License, eliminates the lengthy and often uncertain regulatory approval process that typically deters investors from entering the licensed hospitality space. Obtaining such a license in Singapore is notoriously stringent, with the authorities maintaining tight controls over the issuance and renewal of nightclub permits. Owning units with this license already in place represents a significant competitive moat against new entrants and substantially enhances capital value.

Rental Yield and Income Stability

These dual units are presented with an established long-term tenancy already in place, generating a rental yield estimated at 4–5%, which significantly outpaces both residential property yields in comparable prime locations and returns on many alternative asset classes. This yield is underpinned by a stable operator with a history of multiple lease renewals, reducing vacancy risk and providing investors with predictable cash flow. In an inflationary environment where yield-hungry capital seeks real assets with tangible income streams, commercial nightclub venues have demonstrated resilience, particularly in Singapore's robust hospitality market.

The revenue potential extends beyond base rent; many licensed venue operators generate additional returns through shared revenue arrangements or performance-linked rental structures, though the specific terms of the existing tenancy would require detailed review during due diligence. Regardless, the presence of a tenant already generating income from day one substantially de-risks the investment compared to owner-operated models or vacant commercial spaces requiring extensive upfront capital deployment.

Regulatory Scarcity and Investment Merit

Singapore's regulatory framework governing nightclub licences creates a structural scarcity that underpins long-term value appreciation. The Public Entertainment License (Nightclub) category is not freely issued; authorities assess applications against strict criteria including location sensitivity, noise management, safety protocols, and community impact. This regulated environment means the supply of licensed nightclub venues cannot expand freely to match demand, conferring a quasi-monopolistic character on existing licensed properties.

For investors, this translates into a tangible hedge against commoditisation. Whereas standard office or retail units in the CBD may face margin compression from oversupply or changing workspace trends, a licensed nightclub venue with proven operational history and tenant quality represents a defensible, income-generating asset with limited substitutability. The license itself becomes a financial asset separate from the physical real estate, adding an intangible layer of value that resists depreciation.

Capital Appreciation and Market Dynamics

The 4,402 square feet configuration across two units provides flexibility that appeals to institutional investors, corporate hospitality groups, and high-net-worth individuals seeking to consolidate or separate operations. The dual-unit structure also creates optionality: an owner could maintain the existing licensed operation, subdivide leasing to multiple operators, or reconfigure for alternative commercial uses should market conditions or regulatory changes warrant.

From a capital appreciation perspective, the combination of CBD location, MRT proximity, and the scarcity premium attached to the entertainment license positions these units favourably relative to broader commercial property market trends. Singapore's hospitality sector continues to attract international investment, and the domestic entertainment market has demonstrated robust recovery post-pandemic, with venues in premium CBD locations seeing accelerating foot traffic and ancillary spending.

Buyer Profile Considerations

These units suit a diverse investor cohort. Experienced commercial property investors will recognise the yield-on-cost advantage and the inflation-hedging characteristics of a licensed hospitality asset. High-net-worth individuals seeking diversification beyond residential property or equities will appreciate the tangible, income-producing nature of the asset and its trophy status within Singapore's leisure economy. Institutional investors—including some family offices and alternative asset managers—increasingly allocate capital to licensed hospitality properties as a defensive, yield-generative allocation within broader Asia-Pacific property strategies.

First-time commercial property buyers, by contrast, should approach with appropriate advisory support, as operating a nightclub or managing a licensed venue operator requires sector-specific knowledge and ongoing regulatory compliance oversight. The existing tenancy mitigates some operational risk, but potential owners should still engage qualified hospitality property consultants and legal advisors specialising in entertainment licensing to fully understand ongoing obligations and renewal mechanics.

Financing and ABSD Implications

At a price point of S$9.45 million, these units will typically require substantial cash equity or full cash settlement, as mortgage lending on licensed hospitality properties faces higher scrutiny from local financial institutions compared to standard commercial office or retail. Some banks may lend at 40–50% loan-to-value (LTV) for experienced borrowers with sector expertise, but obtaining a mortgage facility approaching typical residential LTV ratios (70–80%) is unlikely.

For Singapore Citizens purchasing this as a second residential property, Additional Buyer's Stamp Duty (ABSD) at the rate of 20% would apply, significantly increasing acquisition costs. However, because this is classified as commercial rather than residential, ABSD may not apply depending on the buyer's primary use classification with the Inland Revenue Authority of Singapore (IRAS). Buyers should clarify this with their tax advisors and legal counsel prior to commitment, as the distinction carries material cost implications of approximately S$1.89 million if ABSD were to be assessed at the full 20% rate on the purchase price.

Risk Factors and Due Diligence

Prospective buyers must conduct thorough due diligence on the existing tenancy agreement, including renewal terms, performance metrics, and the tenant's financial stability. The nightclub operator's ability to maintain the license—contingent on satisfactory compliance with noise, safety, and operational standards—should be assessed through meetings with the current operator and review of any compliance notices or audit records held by the relevant authorities.

The license itself, whilst rare, remains subject to periodic renewal by Singapore's relevant regulatory bodies. Understanding the renewal timeline, conditions, and any regulatory trends affecting the nightlife sector is essential. Additionally, the units' physical condition, including any structural limitations, sound insulation adequacy, and compliance with building codes, should be verified through an independent survey conducted by a qualified building consultant with hospitality venue experience.

Market Positioning and Value Proposition

In the broader Singapore commercial property market, dual units with an existing, income-producing Public Entertainment License remain exceedingly rare offerings. The CBD location combined with MRT accessibility and the established tenancy create a property that transcends typical commercial real estate dynamics. Rather than competing directly with standard office or retail spaces, these units occupy a niche category where scarcity, regulation, and income stability converge to create a defensible, appreciating asset.

For investors seeking exposure to Singapore's high-growth hospitality and entertainment sectors without the operational burden of running a venue directly, this opportunity provides a compelling entry point. The established rental income de-risks the transition period, whilst the inherent scarcity of licensed nightclub properties in the CBD provides a long-term value preservation mechanism.

Frequently Asked Questions

What rental yield can investors realistically expect from these dual commercial units?

The developer and current tenancy documentation indicate an estimated rental yield of 4–5% on the purchase price, representing a competitive return for prime CBD commercial property in Singapore. This yield is derived from an established long-term operator with a history of lease renewals, providing stability absent in vacant or newly leased commercial space. The yield outperforms residential property returns in comparable CBD locations and benefits from the scarcity premium attached to licensed nightclub venues, which are tightly regulated and rarely offered for investment. Actual yield can vary depending on lease escalation clauses, any performance-linked rental structures, and the tenant's ability to renew at expiry, making it crucial for investors to review the complete tenancy agreement during due diligence.

How do these units' pricing and value compare to recent comparable sales in the Coleman Street and CBD commercial market?

Precise per-square-foot comparables for licensed nightclub properties in the CBD are limited, as such assets trade infrequently and often at values that reflect the license premium rather than the raw per-sqft basis alone. The 4,402 sqft dual units at S$9.45 million translate to approximately S$2,145 per sqft, which is reasonable for prime CBD commercial space when the embedded license value is considered. Standard office or retail units in the Coleman Street vicinity might trade at S$1,800–S$2,200 per sqft, but those lack the regulated scarcity and income-producing characteristics of a licensed entertainment venue. The license itself commands a substantial premium—potentially 15–25% of the property value—meaning that like-for-like comparisons with unlicensed commercial units can be misleading. Professional valuation by a commercial property specialist conversant with licensed hospitality venues would establish a more definitive position in relation to recent transactions.

Do Additional Buyer's Stamp Duty (ABSD) provisions apply to the purchase of these commercial units?

The applicability of Additional Buyer's Stamp Duty hinges on whether these units are classified as commercial or residential property for IRAS purposes. Because they are licensed as a nightclub venue and zoned commercial, ABSD should not apply to most buyers; however, if IRAS were to characterise any portion as residential (which is unlikely given the entertainment license), a Singapore Citizen purchasing this as a second property would face ABSD at 20%. This would add approximately S$1.89 million to the acquisition cost if assessed in full. Prospective buyers must engage a tax advisor and obtain written confirmation from IRAS or their conveyancing lawyer regarding the property's classification and any ABSD liability before committing to purchase. The distinction can materially affect the true cost of acquisition and return calculations.

How does the one-minute walk to City Hall MRT station impact demand, rental rates, and long-term capital appreciation?

Proximity to City Hall MRT (EW13 on the East-West Line) is a material value driver for these units, ensuring constant visibility to commuters, corporate workers in the CBD, and leisure visitors accessing Clarke Quay and the riverside entertainment precinct. Nightclub venues depend on accessible foot traffic and ease of transport access for both staff and patrons; the one-minute walk significantly enhances the operator's ability to attract and retain customers. This accessibility translates to lower vacancy risk and supports premium rental rates, as the current 4–5% yield reflects. From a capital appreciation lens, MRT-proximate commercial properties in Singapore have historically outpaced those requiring longer walks or vehicle transport, as the land value premium near transit nodes is rarely arbitraged away. Should Singapore's future transport expansions or district intensification projects increase visitor flows or working populations in the CBD, these units would benefit disproportionately from network effects.

What are the suitability considerations for different buyer profiles—HNW individuals, institutional investors, owner-operators, and first-time commercial buyers?

High-net-worth individuals seeking portfolio diversification often view licensed hospitality properties as tangible, income-producing assets with aesthetic and social value; these units fit that profile well. Institutional investors and family offices increasingly allocate to licenced hospitality in Asia-Pacific as a yield-generative, inflation-hedging allocation with scarcity protection. Owner-operators and hospitality groups may purchase to consolidate or expand their venue portfolio, leveraging existing operational expertise. However, first-time commercial property investors or those without hospitality sector experience should approach with caution and strong advisory support, as ongoing license compliance, operator relationship management, and regulatory renewal processes require specialist knowledge. The existing long-term tenancy does mitigate operational risk significantly compared to purchasing vacant commercial space, but prospective owner-operators should still conduct detailed site visits, speak with the incumbent operator, and understand the lease terms intimately before proceeding.

What financing options and debt serviceability constraints should a buyer anticipate at this price point?

Mortgage lending for licensed hospitality properties typically carries stricter underwriting than standard commercial real estate or residential property. Most Singapore banks will offer loan-to-value ratios of 40–50% for such properties, even for creditworthy borrowers, and interest rates may be 50–100 basis points higher than for standard office or retail. At S$9.45 million, this implies a required equity stake of S$4.7–S$5.7 million, making cash reserves a critical factor. Debt serviceability (TDSR) calculations will reflect the higher loan amount and interest cost, requiring monthly cash flow or other income to exceed the debt service by substantial margins, typically 30% or more. Many buyers at this price point will elect full cash settlement to avoid financing friction, regulatory delays, and higher carrying costs. Buyers seeking leverage should consult directly with their bank's commercial real estate team and obtain a pre-financing assessment before making an offer, as acquisition timelines can extend if financing is dependent on bank approval.

How do these units compare to other licensed commercial or hospitality properties available in the Singapore CBD market?

Direct comparables are scarce; licensed nightclub properties at this scale and location trade infrequently. Standard office or retail units in Coleman Street or nearby CBD locations (e.g., Raffles Place, Boat Quay) offer lower entry prices (often S$2–6 million for similar floor areas) but lack the income stability and license scarcity premium. Larger hospitality-focused properties—such as boutique hotel shells or dining establishments with existing tenancies—may trade at similar price points but typically lack the density of foot traffic or entertainment licensing cachet that nightclub venues command. Properties in secondary CBD or nearby fringe districts (e.g., Tanjong Pagar, Outram) may offer higher yields (5–7%) but sacrifice the accessibility and patternage advantages of City Hall's immediate proximity. The dual-unit format also distinguishes these units; most CBD commercial space is leased as single, standardised units, whereas the two-unit configuration provides flexibility and appeal to investors seeking operational optionality or portfolio consolidation.

Which floor level or unit stack within the development offers the best value or operational advantages?

The available information does not specify the floor levels of the two units or their position within the building stack. However, in general, ground-floor or first-floor nightclub venues command premium rental rates and attract higher patronage due to street visibility and ease of access for walk-in customers and delivery services. Upper-floor venues, whilst potentially quieter from a neighbour-relations perspective, may face customer acquisition challenges and higher reliance on directed traffic (e.g., website bookings, group reservations). A dual-unit configuration where one unit sits on an accessible lower level and another on an upper level provides operational flexibility, allowing an owner or operator to separate functions (e.g., main bar and nightclub on lower levels, VIP or administrative functions above). During site inspection and due diligence, prospective buyers should evaluate the sightlines, facade prominence, loading access, and sound insulation of each unit to determine which configuration best suits the incumbent or anticipated operational model. Engaging the existing operator in this assessment will provide practical insights into traffic patterns and revenue drivers.

What are the lease tenure implications, and how does Singapore's leasehold versus freehold framework affect resale value?

The data provided does not specify whether these commercial units are held on a 99-year lease, 999-year lease, or freehold basis. For commercial property in the Singapore CBD, leasehold structures are common, particularly in older buildings or properties where the land is held separately by a real estate company or government body. A 99-year lease on CBD commercial property can still command strong rental and resale values, as the absolute lease decay (i.e., the property becoming unlettable before lease expiry) is unlikely within typical investment horizons of 10–30 years. However, a 999-year lease or freehold status is materially preferable, as it eliminates any perception of lease decay risk and provides indefinite capital preservation. Prospective buyers must clarify the lease tenure with their legal advisor and factor any remaining lease decay into long-term valuation and financing decisions. Banks may require substantial lease duration (typically 65+ years remaining) before providing mortgage facilities, and buyers should confirm this with their lender early in the process to avoid late-stage surprises.

What is the future supply pipeline for commercial and licensed hospitality properties in the CBD and surrounding districts, and how might it affect these units' capital value?

Singapore's CBD commercial property supply is relatively constrained, particularly for large-floor-plate office or retail units, given land scarcity and the already-dense development pattern. However, new commercial developments do continue to emerge in adjacent precincts (e.g., Tanjong Pagar, Outram Park, Marina Bay), potentially offering displacement alternatives for tenants and diluting rental growth. The supply of licensed nightclub venues specifically is tightly controlled by regulatory authorities and does not respond to market supply-demand dynamics in the way standard commercial space might. This regulatory scarcity provides a structural hedge against future competitive pressure. That said, broader hospitality and entertainment trends—such as the rise of alternative nightlife formats (rooftop bars, speakeasy concepts, hybrid dining-entertainment venues) and changing consumer preferences post-pandemic—could influence the long-term demand for traditional nightclub venues. Investors should monitor Singapore's hospitality recovery trajectory, any changes in licensing criteria by authorities, and broader leisure spending trends to assess whether the incumbent operator's business model remains durable. The existing stable tenancy and operator track record mitigate near-term supply risk substantially; longer-term considerations would be better evaluated through engagement with hospitality sector specialists.

What is the license renewal process for the Public Entertainment (Nightclub) License, and what are the risks or contingencies if renewal is not granted?

Singapore's Public Entertainment License (Nightclub category) is typically issued by the relevant licensing authority (Police Licensing and Regulatory Division or equivalent) and is subject to periodic review and renewal, usually on a one-to-three-year cycle. Renewal is contingent on the operator's compliance with noise regulations, safety standards, fire codes, and operational conduct; any breaches or violations can jeopardise renewal. The license is non-transferable to a new operator without a fresh application and fresh approval, meaning a change in tenant or operator may require re-licensing, which can introduce delays and uncertainty. A complete loss of the license (e.g., due to persistent non-compliance) would force the property to revert to standard commercial use, potentially reducing rental income and capital value substantially, though unlicensed dining or entertainment would still be possible. These risks underscore the importance of thorough due diligence on the incumbent operator's compliance record, understanding the lease renewal mechanics and any provisions for license renewal contingencies, and confirming the licensing authority's expectations and renewal likelihood directly. Buyers should budget for legal and consulting costs to conduct a pre-purchase license audit and obtain written confirmation of renewal eligibility from the operator and, if possible, a non-binding indication from the licensing authority.

Food &Amp; Beverage At Coleman Street — From S$9.5M