# Fresh wave of conserved commercial buildings hits the market in Upper Circular Road after URA policy shift - **Source:** EdgeProp Singapore - **Published:** 2026-07-15T01:00:00.000Z - **Author:** Cecilia Chow - **Original:** https://www.edgeprop.sg/property-news/fresh-wave-conserved-building-sales-upper-circular-road-area-triggered-ura-hotel-policy-shift - **Topics:** Commercial & Industrial, Government & Policy, Transactions & Deals ## Featured rationale Broader conversion options could widen demand from hospitality investors, family offices and living-sector operators, potentially supporting values for refurbished buildings with renewed leases. ## AI summary URA’s June 5 policy shift allowing applications for new accommodation uses prompted multiple conserved Upper Circular Road commercial properties to enter the market. ## Original article When Matthew Ong, CEO of SLB Development, bought the four-storey commercial building at 38 and 40 South Bridge Road for $13.58 million in an off-market deal in February 2023, the plan was straightforward: tear it down, redevelop it, and use it as his own headquarters. Three years on, an accidental architectural discovery — followed by a shift in URA policy — has transformed that redevelopment plan into something very different. The turn came about almost by accident. While contractors were gutting the interiors, they found leaks in some of the joints. Fixing them meant stripping off the entire glass-and-aluminium cladding of the facade — and that removal revealed the building's original "Shanghai plaster" finish underneath. A stone-like coating popular for buildings from the 1920s to the 1960s, Shanghai plaster is rarely used today and evokes a bygone era. Read also: Portfolio of three boutique commercial buildings in CBD up for sale at $90 mil On closer inspection, the material was found to be largely intact, and the building's original reinforced-concrete columns and floors were still sound. Built sometime between the 1930s and 1940s, the property also features architectural elements such as flag posts that, URA says, reflect the grandeur of the Art Deco style. Ong decided to conserve it. It was not the first time he had chosen conservation over redevelopment. A year earlier, after buying a pair of buildings nearby, he had also opted to conserve rather than demolish them. Demolition to conservation Ong had purchased the pair of four-storey commercial buildings at 30 and 31 North Canal Road in March 2022 for $14.38 million. Built in the 1950s, they were representative of the modern-style buildings of that era — reinforced concrete with steel-frame windows in a "graph paper-like" design, according to URA. "We saw how conserving a building gave it more character," Ong says. "And we decided to conserve the South Bridge Road property too." Having chosen to conserve the buildings rather than demolish them, Ong went further. The buildings at 38 and 40 South Bridge Road straddle two separate 99-year leasehold lots: one of 1,300 sq ft with just 17 years left on a lease dating from 1941; the other of 1,324 sq ft with 24 years remaining on a lease from 1947. Both near-expiry leases have since been topped up to a fresh 99 years from June 2026. Ong is now amalgamating the two into a single 2,624 sq ft lot under one address at 38 South Bridge Road. The combined site will have an 11.5m frontage and a gross floor area (GFA) of 10,503 sq ft. Read also: Four-storey commercial building on South Bridge Road launched for sale at $38 mil Alongside conserving the entire facade, Ong undertook extensive asset enhancements, including new lifts, new washrooms, upgraded mechanical and electrical systems, and enhanced ventilation and fire-protection infrastructure. The building carries full commercial zoning, with the first and fourth levels approved for F&B use and fitted with exhaust ducts and grease traps. The works were completed in 2Q2026, with the Certificate of Statutory Completion obtained on June 2. Policy reversal Ong was still weighing whether to move into the building at 38 South Bridge Road when URA, in a circular dated June 5, signalled it was prepared to relax restrictions on accommodation-led uses — new hotels, backpackers' hostels and serviced apartments — in the Upper Circular Road and Beach Road Conservation Areas. The aim was to encourage more vibrancy and diversity along those street blocks. The Upper Circular Road Conservation Area covers Upper Circular Road, South Bridge Road, North Canal Road, Carpenter Street and Hongkong Street. The move reverses earlier curbs on new short-stay accommodation in the Singapore River, Downtown Core and surrounding districts. The restrictions were intended to protect the precincts’ historical identity and prevent an over-concentration of similar lodging concepts. The change has prompted building owners in the area to rethink their options. "The potential to obtain planning approval for hotel conversion widens the pool of investors, especially as the hospitality market continues to gain momentum," says Melvin Chay, senior director of capital markets at Knight Frank. Read also: Adjoining pair of shophouses on Hongkong Street for sale at $42 mil Testing the market at $38 mil Ong has since applied for Outline Planning Permission for an estimated 35-40 rooms at 38 South Bridge Road. The application is pending approval. "When the government allowed the application for use as a hotel or serviced apartment, we thought it was a good time to test the market," he says. "We received calls from some co-living operators and family offices, so I thought it was a good opportunity to launch it and see the response." He has appointed Knight Frank as the exclusive agent to handle the sale at a price tag of $38 million, or $3,618 psf on GFA. The property is being offered for sale by expression of interest (EOI), closing on Aug 19. Beyond hospitality players, Knight Frank's Chay expects the building to appeal to end-users — corporate owners seeking a headquarters — and to private capital. The draws, he says, are a price tag under $50 million and vacant possession. More owners enter the market Ong is not the only one testing the market. A portfolio of three newly refurbished boutique commercial buildings, also in the Upper Circular Road Conservation Area, has been launched for sale by EOI closing on Aug 18. Jointly marketed by Cushman & Wakefield (C&W) and CBRE, the buildings are offered collectively for about $89.15 million, or can also be acquired separately. All three have undergone extensive asset enhancements, with their leases topped up to a fresh 99 years. The trio belong to the same Singaporean owner, a prolific property investor. The largest is the six-storey building at 38 North Canal Road — an amalgamation of 38 and 39 North Canal Road on a combined 3,320 sq ft site with a GFA of 14,322 sq ft. Under a 99-year lease that began in January 2024, with 96 years remaining, it is on the market for $44.4 million, or $3,100 psf. The owner bought 38 North Canal Road for $8.45 million in April 2022, though no caveat was lodged for 39 North Canal Road. He refurbished the entire property, which pairs a five-storey conserved front block with a newly built six-storey rear extension, completing the works last year. The building is substantially leased, with a diverse tenant mix spanning a Chinese fine-dining restaurant; a wellness club featuring a sauna, Arctic plunge pools and massage therapy; a leadership and coaching firm; a Hyrox training gym; and a shipbroking firm. At 32 Hongkong Street, the ground floor is leased to Wine Fridge Singapore, with office tenants occupying the upper floors. The property is on the market for $22.35 million ($3,100 psf). Meanwhile, at 40 Carpenter Street, a café, a Pilates studio and a Japanese hair salon occupy the lower floors, with offices above. It is being marketed for $22.4 million ($3,200 psf). Catalyst for change The government's move to relax short-term accommodation rules is "a catalyst" for footfall and vibrancy in the area, says Clemence Lee, executive director of capital markets at CBRE. "We see this as a positive move." Lee notes the three assets could yield a total of 450 beds if converted to backpacker or student-hostel use. Alternatively, buyers could pursue boutique hotel or serviced-apartment configurations with larger rooms. "These assets represent a new generation of conserved shophouses," says Sophia Lim, director of capital markets at C&W Singapore. Newly refurbished, fully tenanted and income-producing, the portfolio offers "a compelling combination of long-term tenure security, resilient income, and future value-add creation through repositioning opportunities," she adds. The appeal of buildings in pairs Investors like SLB’s Ong are drawn to buildings that come in pairs, such as 38 and 40 South Bridge Road, and 30 and 31 North Canal Road. "When you have two adjoining shophouses, the interiors are brighter because you get a lot of natural light," he says. "You have the flexibility to turn it into offices, a hospitality asset or even for your own use — like what Hwa Hong Corp did.” Indeed, 38–40 South Bridge Road had served as the headquarters of real estate investment and development firm Hwa Hong Corp for more than 20 years before its sale to SLB Development in 2023. URA Realis data shows that Hwa Hong bought the property in January 2000 for $4.776 million; previously, it was the People's Insurance Building. After extensively restoring 30 and 31 North Canal Road, Ong put that property on the market last October, with CBRE and Savills as joint marketing agents and a price tag of $45 million, or $3,340 psf on GFA. The EOI closed last November, but Ong says he remains "open to offers". The newly completed building is already 50% leased, he adds. From brothels to speakeasies The owners and the variety of tenants today illustrate how the Upper Circular Road area has turned into “a mini lifestyle and F&B hub", says CBRE’s Lee. The transformation, he notes, has been organic and gradual, as new owners refurbish old buildings, top up leases and bring in fresh tenants. Hongkong Street has changed the most. Before World War II, when it was known as Macau Street, it was lined with brothels serving the Cantonese and Japanese communities. It later gave way to traditional trades and warehouses. "Fifteen years ago, the shophouses were still mainly occupied by dried-goods stores," recalls Lee, who began his career marketing shophouses on the very same street. His first deal was the sale of 31 Hongkong Street to 8M Real Estate for $14.45 million in July 2015. Formerly owned by a shipping company, the building has since been refurbished, with its lease topped up, and converted into 20 serviced apartments, now managed by co-living operator Cove. The street's newer arrivals underscore the shift. Early this year, Paddington Bay Residences, a high-end dog hotel, opened at 35 Hongkong Street, offering concierge-style grooming, walking and training, alongside a lounge, a heated indoor pool and a private garden. A few doors down is Luma41, a 30-room, Peranakan-inspired hotel with a ground-floor café and rooftop jacuzzi, which opened in February. It is a rebranding of the former Hotel Nuve Elements at 41 Hongkong Street, which was offered for sale at $35 million three years ago. “It’s still available for sale at the same price,” says Sammi Lim, founder and executive director of Brilliance Capital, the marketing agent. Other hospitality concepts have followed. Kinn Habitat, a female-only, wellness-focused capsule hotel at 39 South Bridge Road, opened in 2021. Another capsule hotel, Gatherhouse by The Assembly Place at 65 South Bridge Road, is slated to open soon. F&B has driven much of the transformation on Hongkong Street. Among its best-known tenants is 28 Hongkong Street, the speakeasy that opened in 2011 and has since become one of Asia's most celebrated bars. It was named Asia's Best Bar in 2016 and has repeatedly featured on both Asia's and the World's 50 Best Bars lists. "Gentrification started from 28 Hongkong Street," Lee says. Nearby is Willow, at 39 Hongkong Street, a one-Michelin-starred restaurant serving a pan-Asian tasting menu by chef Nicholas Tam. More shophouses come to market Another EOI has also been launched for a pair of adjoining shophouses at 18 and 19 Hongkong Street. Marketed by Knight Frank Singapore, the properties are available individually or collectively at a combined guide price of $42 million. The EOI closes on Aug 25. The four-storey building at 18 Hongkong Street is approved for hostel use and is currently occupied by City Backpackers. It has a guide price of $14.5 million, or $2,858 psf on a GFA basis. Next door, 19 Hongkong Street is a four-storey commercial building with a new six-storey rear extension. The property, which underwent a $7 million refurbishment and has a fresh 99-year lease, is on the market for $27.5 million ($3,111 psf based on GFA). Combined, the two sites occupy 3,676 sq ft and could potentially be amalgamated into a larger accommodation asset, subject to the relevant authorities' approval, says Dayna Ang, senior manager of capital markets at Knight Frank Singapore. A district on the rise The biggest draw of the Upper Circular Road area, CBRE's Lee says, is its location within the CBD and its proximity to the Clarke Quay and Raffles Place MRT stations. "It is also one of the oldest districts in Singapore," he adds. "People are drawn to the area by the rejuvenation taking place — similar to what we saw in Club Street in the early 2000s, Keong Saik Road in the 2010s, and Joo Chiat in the recent decade." The momentum extends beyond the conservation area. Earlier this year, C&W brokered the sale of a five-storey building at 49 and 53 New Bridge Road for $37.5 million following a relaunch. Two years earlier, seller OCBC had launched a public tender at $45 million. The property at 49 and 53 New Bridge Road was sold with vacant possession to a Singaporean high-net-worth individual. "It was purchased for legacy-planning purposes," says C&W's Lim. "The buyer is cognisant of the rejuvenation taking place and has a long-term view in mind." Knight Frank's Chay points to a string of hospitality deals this year: the 575-room Crowne Plaza Changi Airport, sold for $500 million to a joint venture between OUE and Tokyo Century; the 272-room Orchid Hotel in Tanjong Pagar, bought for $273 million by Master Contract and Westmont Hospitality; and the 251-room Park Avenue Changi, acquired for $101 million by co-living operator Coliwoo, a subsidiary of LHN Group. “Just like in the last couple of months, we will see more hospitality transactions announced as well in the next few months,” Chay says. However, the assets currently on the market in the Upper Circular Road precinct are boutique commercial properties, notes C&W's Lim. "They are priced in the $20 million to $50 million range, and have potential for change of use," she says. "They will appeal to high-net-worth individuals and family offices looking to enter the living sector." The August EOIs will provide an early test of whether the policy change can translate planning flexibility into higher investor demand. For owners of conserved buildings in the precinct, however, the range of possibilities has already widened. ## Chinese translation > Translation model: grok ### 市区重建局政策松绑后，上圆形路一带多栋保育商业楼宇集中入市 业主正修复老化商业物业、补足地契年期并试探市场，市区重建局亦放宽更多酒店式用途。 当SLB Development首席执行官Matthew Ong于2023年2月以场外交易、1,358万新元购入位于South Bridge Road 38及40号的四层商业楼时，计划很简单：拆卸重建，并作为自己的总部。 三年过去，一次偶然的建筑发现——再加上市区重建局（URA）的政策转向——让这套重建方案彻底改写。 转折几乎纯属意外。承包商清空室内时，发现部分接缝渗漏。要修复，须剥除立面全部玻璃与铝制外墙；一拆除，楼宇原本的“上海批荡”（Shanghai plaster）饰面便显露出来。这种类似石材的涂层在1920至1960年代的建筑中十分流行，如今已很少使用，令人联想起逝去的时代。 延伸阅读：中央商务区三栋精品商业楼打包求售约9,000万新元 经仔细检查，该材料大体完好，原有钢筋混凝土柱与楼板结构也仍然健全。该物业约建于1930至1940年代，并带有旗杆等建筑元素；URA指这些特征体现装饰艺术（Art Deco）风格的气派。 Ong决定保育这座楼。这并非他第一次选择保育而非重建。一年前，他购入附近一对楼宇后，同样选择保育而非拆除。 从拆卸到保育 Ong于2022年3月以1,438万新元购入位于North Canal Road 30及31号的一对四层商业楼。建于1950年代，它们是那个年代现代风格建筑的代表——据URA描述，为钢筋混凝土结构，配钢框窗户，呈“方格纸式”设计。 “我们看到，保育一栋楼能赋予它更多个性，”Ong说。“于是我们也决定保育桥南路那栋物业。” 选定保育而非拆除后，Ong更进一步。South Bridge Road 38及40号横跨两幅独立的99年地契地段：一幅约1,300平方英尺，自1941年起计的地契仅剩17年；另一幅约1,324平方英尺，自1947年起计的地契尚余24年。这两份临近届满的地契均已补足至自2026年6月起计的全新99年。 Ong现正将两幅地合并为单一2,624平方英尺地段，统一地址为South Bridge Road 38号。合并后地段临街面宽11.5米，总楼面面积（GFA）为10,503平方英尺。 延伸阅读：桥南路四层商业楼挂牌求售3,800万新元 除完整保育立面外，Ong还进行了大规模资产提升，包括新电梯、新洗手间、机电系统升级，以及加强通风与消防基础设施。 该楼为全商业区划，一楼与四楼获准作餐饮用途，并已安装排烟管道与隔油设施。工程于2026年第二季完成，法定竣工证书于6月2日取得。 政策转向 Ong仍在考虑是否迁入South Bridge Road 38号时，URA在6月5日通告中表明，拟放宽上圆形路（Upper Circular Road）及Beach Road保育区内住宿类用途——包括新酒店、背包客旅舍与服务式公寓——的限制，以提升这些街区的活力与多样性。 上圆形路保育区涵盖上圆形路、桥南路、北运河路、Carpenter Street与Hongkong Street。 此举扭转了此前对新加坡河、市中心核心区及周边地区新增短住住宿的限制。当时限制旨在保护街区历史特色，并避免同类住宿概念过度集中。 政策变化促使区内业主重新评估选项。“取得酒店改建规划批准的可能性扩大了投资者群体，尤其在酒店业市场持续升温之际，”莱坊（Knight Frank）资本市场高级董事Melvin Chay说。 延伸阅读：Hongkong Street相邻店屋一对求售4,200万新元 以3,800万新元试探市场 Ong已为South Bridge Road 38号申请大纲规划许可，拟建约35至40间客房，申请仍待审批。 “当政府允许申请作酒店或服务式公寓用途时，我们认为是试探市场的好时机，”他说。“我们接到一些共居运营商和家族办公室的来电，所以觉得是推出并观察反应的好机会。” 他已委任莱坊为独家代理，挂牌价3,800万新元，约合每平方英尺总楼面面积3,618新元。物业以意向书（EOI）方式出售，截止日期为8月19日。 除酒店业买家外，莱坊的Chay预期该楼也会吸引寻求总部的企业自用买家，以及私人资本。吸引力在于售价低于5,000万新元，且可交吉。 更多业主入市 试探市场的不止Ong一人。同样位于上圆形路保育区的三栋新近翻新精品商业楼，亦以EOI方式联合挂牌，截止日期为8月18日。由Cushman & Wakefield（C&W）与世邦魏理仕（CBRE）联合营销，打包约8,915万新元，亦可分栋收购。 三栋均已完成大规模资产提升，地契亦补足至全新99年。它们同属一名活跃的新加坡业主。 最大一栋为North Canal Road 38号六层楼——由38及39号合并而成，地段合共3,320平方英尺，总楼面面积14,322平方英尺。地契自2024年1月起计99年，尚余96年，挂牌4,440万新元，约每平方英尺3,100新元。 业主于2022年4月以845万新元购入North Canal Road 38号；39号则未见登记caveat。他翻新整栋物业，前座为五层保育楼，后座为新建六层扩建，工程于去年完工。 楼宇租赁状况良好，租户组合多元，包括中式精致餐厅、设桑拿、极地冷水池与按摩疗法的健康会所、领导力与教练公司、Hyrox训练健身房，以及船舶经纪公司。 Hongkong Street 32号地下层租予Wine Fridge Singapore，上层为办公租户，挂牌2,235万新元（约每平方英尺3,100新元）。 Carpenter Street 40号下层为咖啡馆、普拉提工作室与日式美发沙龙，上层为办公室，挂牌2,240万新元（约每平方英尺3,200新元）。 变革催化剂 CBRE资本市场执行董事Clemence Lee表示，政府放宽短住住宿规定是带动区内人流与活力的“催化剂”。“我们认为这是积极举措。” Lee指出，若改建为背包客或学生旅舍，这三处资产合计可提供约450个床位；买家亦可打造更大客房的精品酒店或服务式公寓。 “这些资产代表新一代保育店屋，”C&W新加坡资本市场董事Sophia Lim说。新近翻新、租户全满且产生收入，该组合提供“长期地契保障、稳健收益，以及透过重新定位创造未来增值的有力组合”。 成对楼宇的吸引力 像SLB的Ong这样的投资者，偏爱成对楼宇，例如South Bridge Road 38及40号，以及North Canal Road 30及31号。 “两栋相邻店屋时，室内更明亮，因为自然光更充足，”他说。“用途也更灵活——可作办公、酒店资产，甚至自用，就像华鸿公司（Hwa Hong Corp）以前那样。” 事实上，South Bridge Road 38–40号在2023年售予SLB Development之前，曾作为房地产投资与发展公司华鸿公司总部超过20年。URA Realis数据显示，华鸿于2000年1月以477.6万新元购入该物业；此前为人民保险大厦（People's Insurance Building）。 在全面修复North Canal Road 30及31号后，Ong于去年10月挂牌求售，由CBRE与第一太平戴维斯（Savills）联合营销，挂牌价4,500万新元，约合每平方英尺总楼面面积3,340新元。EOI于去年11月截止，但Ong表示仍“欢迎洽谈”。他补充说，新竣工楼宇已出租约50%。 从妓院到秘密酒吧 CBRE的Lee表示，如今的业主与多元租户，说明上圆形路一带已演变为“迷你生活与餐饮枢纽”。他指出，转型是有机而渐进的：新业主翻新旧楼、补足地契并引入新租户。 变化最大的是Hongkong Street。二战前此地称Macau Street，两侧曾是服务粤籍与日侨社群的妓院，其后转为传统行业与货仓。“15年前，店屋仍主要是干货店，”Lee回忆道；他职业生涯最初正是在这条街营销店屋。 他的第一宗交易，是2015年7月将Hongkong Street 31号以1,445万新元售予8M Real Estate。该楼原属航运公司，此后经翻新、补足地契，并改建为20套服务式公寓，现由共居运营商Cove管理。 街上新业态进一步印证转变。今年初，高端犬只酒店Paddington Bay Residences在Hongkong Street 35号开业，提供礼宾式美容、散步与训练，并设休息室、室内加热泳池与私人花园。 几扇门之外是Luma41——一间有30间客房、带娘惹灵感设计的酒店，设地下咖啡馆与屋顶按摩浴缸，于2月开业。它是原Hotel Nuve Elements（Hongkong Street 41号）的重新品牌；三年前曾挂牌3,500万新元求售。“仍以同一价格在售，”营销代理Brilliance Capital创办人兼执行董事Sammi Lim说。 其他住宿概念亦相继出现。位于South Bridge Road 39号、主打女性与健康概念的胶囊酒店Kinn Habitat于2021年开业。另一家胶囊酒店Gatherhouse by The Assembly Place（South Bridge Road 65号）亦即将开业。 餐饮推动了Hongkong Street的大量转型。最知名租户之一是2011年开业的秘密酒吧28 Hongkong Street，已成为亚洲最负盛名的酒吧之一。它曾于2016年获评亚洲最佳酒吧，并多次登上亚洲与世界50大酒吧榜单。 “士绅化从28 Hongkong Street开始，”Lee说。附近Hongkong Street 39号是一星米其林餐厅Willow，由主厨Nicholas Tam呈献泛亚洲品尝菜单。 更多店屋入市 Hongkong Street 18及19号一对相邻店屋亦已启动EOI，由莱坊新加坡营销，可分栋或合并出售，合计指导价4,200万新元。EOI于8月25日截止。 Hongkong Street 18号四层楼获准作旅舍用途，现由City Backpackers占用，指导价1,450万新元，约合每平方英尺总楼面面积2,858新元。 相邻的19号为四层商业楼，并有新建六层后座扩建。该物业曾投入700万新元翻新，并持有全新99年地契，挂牌2,750万新元（约每平方英尺总楼面面积3,111新元）。 莱坊新加坡资本市场高级经理Dayna Ang表示，两幅地合计3,676平方英尺，在相关当局批准下，有潜力合并为更大规模的住宿资产。 正在崛起的街区 CBRE的Lee称，上圆形路一带最大吸引力在于位于中央商务区内，且邻近克拉码头（Clarke Quay）与莱佛士坊（Raffles Place）地铁站。 “这也是新加坡最古老的街区之一，”他补充道。“人们被这里的更新所吸引——类似2000年代初的Club Street、2010年代的Keong Saik Road，以及近十年的Joo Chiat。” 动能亦延伸至保育区之外。今年较早前，C&W促成New Bridge Road 49及53号五层楼以3,750万新元成交，此前曾重新挂牌。两年前卖方华侨银行（OCBC）曾以4,500万新元公开招标。 New Bridge Road 49及53号以交吉状态售予一名新加坡高净值人士。“购入是为了传承规划，”C&W的Lim说。“买家注意到正在进行的更新，并持有长期视野。” 莱坊的Chay指出，今年已有一连串酒店交易：575间客房的樟宜机场皇冠假日酒店以5亿新元售予华联企业（OUE）与东京世纪（Tokyo Century）合资公司；丹戎巴葛272间客房的Orchid Hotel以2.73亿新元售予Master Contract与Westmont Hospitality；251间客房的Park Avenue Changi则以1.01亿新元由共居运营商Coliwoo（LHN Group子公司）购入。 “就像过去几个月一样，未来几个月我们还会看到更多酒店交易公布，”Chay说。 不过，C&W的Lim指出，上圆形路一带目前在售的是精品商业物业。“它们价格落在2,000万至5,000万新元区间，并具备改用途潜力，”她说。“将吸引希望进入住宿/居住领域的高净值人士与家族办公室。” 8月的多轮EOI，将初步检验政策变化能否把规划弹性转化为更高的投资者需求。对区内保育楼业主而言，可选路径已经拓宽。