More shophouses up for sale in three areas

Two three-storey conservation shophouses in Tras Street (above) are up for sale and the guide price works out to about $2,800 per sq ft for each unit.
Dated: 08-Jan-2020

With robust demand for shophouses last year, the start of this year saw the latest slew of such investment properties up for sale.

A pair of conservation shophouses in Tras Street in Tanjong Pagar is on the market with a guide price of $12 million for the larger property and $10.8 million for the smaller unit. This works out to about $2, 800 per sq ft for each shophouse, sole marketing agent CBRE announced yesterday.

The three-storey shophouses with attics have a 99-year lease and are zoned for commercial use under the Urban Redevelopment Authority's 2019 Master Plan.

They are a short walk from Tanjong Pagar MRT station, and fully leased to food and beverage (F&B) operators on the ground floor and small office/home office users on the upper floors, said CBRE.

Recent transactions of 99-year leasehold shophouses include 34, 36 and 38 Tanjong Pagar Road, which sold collectively last month at about $16.4 million ($3, 000 per sq ft); and 76 Pagoda Street, which sold in July at $13.3 million ($3, 500 per sq ft), added CBRE.

Both shophouses can be bought individually or collectively, and are on sale via an expression of interest exercise closing on Feb 12 at 3pm.

Separately, two Freehold shophouses, one in East Coast Road and the other in Geylang, have been launched for sale by tender. Their guide prices start from $9.9 million for the East Coast shophouse and from $4.98 million for the Geylang property, marketing agent PropNex Realty said yesterday.

The tender exercise for both properties closes at 3pm on Jan 30.

The shophouse at 711 East Coast Road has a student hostel licence, which allows accommodation facilities for students in primary and secondary schools, junior colleges and tertiary institutions, PropNex said.

The East Coast shophouse is leased to a retail store on the ground floor and to a student hostel operator on the upper floors.

The corner shophouse at 35 Geylang Lorong 11 has a current plot ratio of about 1.8 and an allowable gross plot ratio of 3.0, which gives it redevelopment potential.

The two-storey shophouse has full tenancy, with its ground storey approved for F&B operations with a liquor licence, while the upper floor is used for housing.

The owner hopes to"sell fast"as the family seeks to divest the asset for personal reasons, said PropNex associate director Loyalle Chin.

Source: Straits Times