Investing in condos in Singapore also requires careful consideration of the government’s property cooling measures. In an effort to maintain a stable real estate market and discourage speculative buying, the Singaporean government has implemented various measures over the years. These include the imposition of Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may affect the immediate profitability of condo investments, they ultimately contribute to the long-term stability of the market, making it a secure environment for condo investment.
A shophouse situated at 76 Pagoda Street in Chinatown has been put up for sale through an expression of interest (EOI) exercise with a guide price of $16 million. The three-storey conservation property stands on a 1,372 sq ft plot and has a gross floor area (GFA) of 3,500 sq ft, including an attic level. Based on the GFA, the guide price works out to approximately $4,571 psf.
According to Richard Tan, founder of PropNex Shophouse Elites and sole marketing agent for the property, the ground and second floors are currently leased to a restaurant operator, while the third floor is used as office space.
Commercial shophouses, especially those in the Chinatown area, are highly sought after by owner-occupiers, high-net-worth individuals, and family offices as long-term investment assets, notes Tan. As it is a commercial property, foreigners and companies are able to acquire it without paying additional buyer’s stamp duty or seller’s stamp duty.
The most recent transaction of a shophouse on Pagoda Street was the sale of 31 Pagoda Street in March for $19 million ($5,588 psf), which has an estimated GFA of 3,400 sq ft. The expression of interest for 76 Pagoda Street will close on Jan 10, 2025.
Meanwhile, another property up for sale is a two-storey HDB shophouse located at 210 New Upper Changi Road, with a guide price of $13.8 million. The 103-year leasehold property has a GFA of 4,607 sq ft, translating to a price of $2,995 psf based on GFA.
Kris Ng, senior associate marketing director at PropNex who is handling the sale, highlights that one of the key attributes of the property is its stable and long-term tenants. For the past 20 years, the shophouse has been leased to healthcare retailer Guardian and United Overseas Bank (UOB).
Situated within the Bedok Town Centre, the shophouse is in close proximity to the East-West Line’s Bedok MRT Station, Bedok Mall, and Heartbeat@Bedok. Similar to the Pagoda Street property, foreigners and companies can acquire this commercial property without having to pay for additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD).
The EOI exercise for 210 New Upper Changi Road will end at noon on Jan 10, 2025.