Exterior of the shophouse at 34 Norris Road (Photo: Simon Monteiro/List Sotheby's International Realty)
SINGAPORE (EDGEPROP) - When Singaporean investor Mr Lim first saw the 21⁄2-storey shophouse at 34 Norris Road last year, it was in need of a makeover. A shop selling necessities occupied the first level, while rooms for rent took up the upper floors. However, Lim recognised its potential.
“Norris Road is a nice quiet street, with mainly residential on the upper floors and some restaurants on the lower floors of the shophouses,” he says. “It’s not as bustling as the other parts of Little India and is adjacent to a police station.”
Norris Road is a quiet street and mainly residential with some restaurants, says Lim (Photo: Google Maps)
Lim decided to purchase the intermediate shophouse for $4.2 million in June 2022 and invested another $400,000 in renovations. The property is zoned for commercial use on the first floor and residential use on the second and mezzanine floors. (Find Singapore commercial properties with our commercial directory)
The first floor has received approval for F&B use. Lim is converting the upper floors into co-living spaces: three en suite bedrooms and a communal kitchen on the second level; and on the mezzanine level, two large en suite bedrooms with a pantry attached.
The shophouse at 34 Norris Road is undergoing renovations which are scheduled for completion by early May (Photo: Simon Monteiro/List Sotheby's International Realty)
Specialists in conserving and restoring shophouses Fivefootway Consultants designed the interiors of the shophouse. Renovation works began a month ago and are due for completion by early May.
The shophouse has a 999-year lease starting from 1909, the same year the property was completed. It has a footprint of 989 sq ft and a total built-up area of 2,320 sq ft.
A cross-section of the three-storey shophouse with the upper floors converted into co-living spaces (Credit: Fivefootway Consultants)
Lim estimates the F&B unit can be leased for $8,000 a month, while the two upper floors will likely be rented out for $14,000. The total monthly rental is estimated at $22,000. He says the new buyer could expect a gross rental yield of 4%.
Even while renovations are underway, Lim has decided to put the property on the market for $6.8 million or $2,931 psf based on its built-up area. Simon Monteiro, senior associate vice-president of List Sotheby’s International Realty, is the exclusive marketing agent for the property, which is available for sale by private treaty.
Source: EdgeProp Singapore; URA Realis
“Over the past few weeks, we have received significant interest from family offices and investors keen on acquiring co-living assets with ground-floor restaurants,” says Monteiro. “They recognise the promising potential of both the high rental income and long-term capital appreciation.”
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