A three-storey conservation shophouse located at 76 Pagoda Street in Chinatown is currently up for sale through an expression of interest (EOI) exercise. With a guide price of $16 million, the 99-year leasehold commercial property sits on a 1,372 sq ft plot of land and offers a total gross floor area (GFA) of 3,500 sq ft, including an attic level. Based on the GFA, the indicative price translates to approximately $4,571 per sq ft.
According to Richard Tan, founder of PropNex Shophouse Elites and the sole marketing agent for the property, the ground and second floors are currently leased to a restaurant operator, while the third floor is being used as office space. Tan also adds that commercial shophouses, particularly those located in the Chinatown area, are highly sought after by owner-occupiers, high-net-worth individuals, or family offices, as they serve as a stable long-term investment option. Furthermore, as this is a commercial property, foreigners and companies are eligible to acquire it without incurring additional buyer’s stamp duty or seller’s stamp duty.
The most recent shophouse transaction on Pagoda Street took place in March, involving the sale of 31 Pagoda Street for $19 million ($5,588 per sq ft). This shophouse has an estimated GFA of 3,400 sq ft.
The EOI exercise for 76 Pagoda Street will close on January 10, 2025.
In a separate transaction, a two-storey HDB shophouse located at 210 New Upper Changi Road is also currently up for sale through an EOI exercise with a guide price of $13.8 million. Boasting a 103-year leasehold term, this property offers a GFA of 4,607 sq ft, which equates to a price of $2,995 per sq ft based on GFA.
According to Kris Ng, senior associate marketing director at PropNex who is marketing the property, one of the key selling points of this property is its long-term, stable tenants. For the past two decades, the property has been leased to healthcare retailer Guardian and United Overseas Bank (UOB). Located within the Bedok Town Centre, the shophouse is also in close proximity to Bedok MRT Station, Bedok Mall, and Heartbeat@Bedok.
Once again, due to its commercial status, foreigners and companies are able to purchase the property without incurring ABSD or SSD.
Evaluating the profitability of a condo investment goes beyond its initial purchase price. Another crucial factor to consider is the potential rental yield. Rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, the rental yields for condos can vary significantly, depending on various factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, offer better rental yields. To gain a deeper understanding of the rental potential of a specific condo, conducting thorough market research and seeking advice from real estate agents can be immensely beneficial. Keep abreast of the latest new condo launches to stay updated with the ever-changing market trends.
The EOI exercise for 210 New Upper Changi Road will close at noon on January 10, 2025.