A 99-year leasehold HDB shophouse at 214 Serangoon Avenue 4 will be on the block at SRI’s next auction on Feb 26. The two-storey shophouse, which comes with living quarters on the second floor, has a total floor area of about 1,668 sq ft. The property has been listed with a guide price of $1.98 million, translating to $1,187 psf on the floor area.

A mortgagee sale, this will be the second time the property appears at SRI’s auction. The property went under the hammer last month with a higher guide price of $2.08 million but did not find a buyer.

According to Jansen Kee, assistant manager of auctions at SRI, the shophouse is prominently positioned in front of a bus stop, giving it good visibility from the road.

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The shophouse is currently tenanted and is generating a gross rental yield of approximately 6.2% based on the guide price, says Kee.

He adds that the unit will be sold with its existing lease, which ends in 2026. This will provide the new owner with an immediate stream of rental income.

Kee notes that the listed guide price for the HDB shophouse is one of the lowest for the asset class in the area, making it an attractive value proposition to both investors and owner-occupiers.

According to URA records, the most recent commercial shophouse transaction in Serangoon was the sale of a 999-year leasehold shophouse along Lichfield Road. The two-storey property spanned a land area of 2,319 sq ft and fetched $4 million ($1,725 psf) in November 2024.

The property up for auction is located within a cluster of HDB flats that border the Serangoon Gardens landed residential estate. It is situated directly across the road from Serangoon Swimming Complex and Serangoon Sports Centre, which provides the area with a steady supply of foot traffic. Carpark lots are available behind the shophouse.

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