- The property was sold for A$190 million
- The price per square foot per plot ratio holds the record at S$3,125
- Located just off Orchard Road on Cuscaden Road
A Singaporean mall has been sold for a record price.
Ming Arcade is located just off Singapore’s world-renowned Orchard Road shopping precinct, on Cuscaden Road.
The property is just blocks away from iconic shopping destinations like ION Orchard, and voco Orchard, all home to luxury brands including Cartier, Rolex, Louis Vuitton, Channel, and many more.
Ming Arcade itself is tucked away in what some locals call the “quiet” end of Orchard precinct, with the other side of the main shopping strip home to the Royal Thai Embassy, and the infamous Orchard Towers.
Ming Arcade sold for S$172 million
The corner plot rises seven stories, is a commercial complex with three basement levels and a total of 88 strata units. The prestigious enclave is nestled between a multiple luxury hotels and residential developments, including Artyzen Hotel, The Edition Hotel, Boulevard 88, Four Seasons Hotel, Four Seaons Park, and St Regis Hotel & Residences.
Sold via a public tender exercise which closed on 15 December 2022, the S$172 million (circa A$190 million) set a record for its price per square foot (psf) per plot ratio (ppr): S$3,125 psf ppr. That is roughly A$3,445 psf ppr, S$33,637 psm ppr, or A$37,000 psm ppr.
The previous record was held by Park House en bloc sale site in 2018, acquired by Hong Kong-listed Shun Tak Holdings. That property was purchased for S$2910 per square foot per plot ratio.
Ming Arcade has been acquired by Royal Group of Companies, a Singapore-based family office with investment in a variety of asset classes including hospitality, office towers and retail, residential, industrial and conserved assets across the APAC region and beyond.
Other notable properties owned by the Royal Group of Companies include Sofitel Singapore Sentosa Resort and Spa, and Singapore’s upcoming second Raffles Hotel in Sentosa, among others. The company was founded by property magnate Asok Kumar Hiranandani, Royal Group of Companies plans to redevelop the site.
The commercial zoned 12,132 sqft freehold site has an existing gross floor area of 55,046 sqft, equivalent to a plot ratio of 4.54, and has a height control of up to 20 stories.
“Ming Arcade used to be an urban and vibrant lifestyle hub back in the 1980s and we are pleased and eager to embark on the rejuvenation of this enclave of Orchard Road precinct and restore the grandeur it deserves. At Royal Group of Companies, we have set a track record of enhancing the districts in which we invest, develop and operate while looking forward to setting new heights,” said Royal Group of Companies’ Chairman, Asok Kumar Hiranandani and CoChairman, Bobby Hiranandani.
“Savills is delighted to have achieved great outcome for all the owners of Ming Arcade. The transacted price is 34% above the Reserve Price and 14.8% higher than Tanglin Shopping Centre, which was also brokered by Savills at S$868 million, or S$2,769 psf ppr in February 2022. A large number of buyers evaluated Ming Arcade and we received multiple bids,” said Jeremy Lake, Savills Managing Director, Investment Sales & Capital Markets.
Singapore retail vacancy lowest since pre-pandemic levels
Savills Research has found that retail vacancy has hit its lowest levels since 2019, easing to a three year low of 7.8% in Q3 2022.
While Outside Central Region (OCR) vacancies remained at 5.1%, a quarter on quarter fall in vacancies was observed in Central Region, falling by 0.5% to 9.3%.
Prime retail rents are rising, but it seems foreign brands looking to set up shop in Singapore are willing to pay. Among examples cited in a release by Savills, Japan’s SNKRDunk will open its first international flagship store at Mandarin Gallery, and Swedish apparel brand & Other Stories’ will open its first Southeast Asian boutique at ION Orchard.
Of course, some businesses on thin margins will not be able to weather the rises, Savills said that “… vacated spaces will be backfilled by well-performing retailers or new entrants who are willing to match up to the new rental expectations.” There is also potential for the mix of retailers to become more varied, particular mention was made of Mercedes’ electric car showroom Mercedes-EQ at Great World City, and a new Porsche showroom to open at Guoco Midtown.
Savills said monthly prime rents in Orchard increased by 1.0% quarter on quarter to S$21.30 psf. The research also said that for 2023, Savills expects a 1-2% increase in Prime Orchard Road retail rents.
