Types of leisure properties – Singapore property for sale/ rent
Leisure properties are different from the usual commercial properties. The value of leisure properties is in the volume of business carried out in the premises. Some example of leisure properties:
- Restaurants, karaoke lounges, bars & billiard saloons
- Hotels
- Timeshare resorts
Restaurants, karaoke lounges, bars & billiard saloons
- Subject to the necessary planning approvals for change of use and licensing e.g. liquor, public entertainment, etc.
- Marketing approach is similar to other commercial properties. Singapore property for sale/ rent.
Hotels
- Usually classified into different categories based on its service standards, facilities, number of rooms and room rates.
- 6-Star – full facilities and full butler service
- 5-Star or Luxury – full facilities
- 3/4-Star or Business – without full facilities
- 2-Star or Budget – no-frill / no facilities
- Boutique Hotels – converted from old shophouses
- Boarding House – without F&B outlets and shared wash facilities
- Pricing of a hotel is based on the number of rooms, rate and occupancy.
- Management contract – contract duration, fee and incentive at a percentage of turnovers.
- Other factors to consider in the pricing of a hotel:
– Type and quality of guest rooms
– Food and beverage (F&B) outlets and function rooms
– Shopping and commercial spaces
– Car parking facilities
– Other facilities e.g. concierge service and recreation facilities
– State of repair of the equipment, furniture, fittings and fixtures. Singapore property for sale/ rent.
Timeshare resorts
- Interval ownership / Vacation ownership
- Owner of a timeshare resort, hotel or an apartment block sells one unit to a number of purchasers for a week per year for a certain period of time (ranges from 20 years to lifetime)
- Can be sold a maximum of 50 weeks per year with 2 weeks for maintenance and repairs
- Location and facilities
- Fixed period – can only use during the fixed period purchased
- Floating period – entitled to use at any time during the year
- 3 forms of ownership:
– Club membership – membership which cannot be sold
– Licence – allows licensee to sell the license but not to sub-licence the unit
– Lease – allows the lessee to rent or sell
- Due to too many complaints, the Timeshare Association (S’pore) issued guidelines to contractually allow perspective buyer a 5-day cooling off period to review purchase
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