SINGAPORE (EDGEPROP) - A 99-year leasehold shophouse at 13 Bussorah Street - located within the Kampong Glam conservation area - has been put up for sale for $6.1 million. The two-storey shophouse sits on a 1,559 sq ft plot and has a built up area of close to 2,800 sq ft. The price translates to $3,913 psf on the land area while the leasehold tenancy started in Nov 2003.
The interior of the shophouse was designed by Singapore-based design consultancy Elliot James Interiors. The company also took out a lease of the second floor of the shophouse until October this year. Savills Singapore’s associate director of heritage buildings Simon Monteiro - the agent marketing the property - says the shophouse will be fully tenanted until July next year and the average monthly rent is $11,200 per month.
An independent valuation of the property conducted in July this year by UOB Bank also valued the property at $6.5 million, he adds.
The shophouse at 13 Bussorah Street (centre) has a 99-year leasehold tenure that began in 2003 (Pictures: Samuel Isaac Chua/The Edge Singapore)
According to URA Realis, the shophouse at 13 Bussorah last changed hands for $4.78 million ($3,067 psf) in Dec 2013. Records also show that the shophouse was sold for $2.8 million ($1,796 psf) in Feb 2012, and for $868,000 ($557 psf) in June 2005.
The most recent transaction in the area was a corner shophouse at 11/11A/11B Bali Lane which changed hands for $18.8 million on Oct 11 this year. The building sits on a 999-year leasehold plot of 1,668 sq ft that faces Ophir Road.
Another shophouse at 68 Arab Street - a freehold property that sits on a 1,184 sq ft plot - was sold for $5.23 million ($4,405 psf) in January this year. Monteiro reckons that the area is primed to benefit from rejuvenation efforts and new developments along Beach Road that have lifted the overall profile of the entire locale. This includes footfall from the Andaz Singapore Hotel in the neighbouring DUO integrated development, which also features 570,000 sq ft of Grade-A offices.
The shophouse at 13 Bussorah Street is fully tenanted and rent is $11,200 per month
Upcoming projects in the area include GuocoLand’s $2.4 billion integrated complex Guoco Midtown on Beach Road. The development includes Midtown Bay, a 33-storey residential tower with 219 units, offices, retail and F&B spaces as well as public spaces. The developer expects to draw in an additional 10,000 visitors to the Beach Road area when the entire project is completed.
This type of shophouse asset would be well suited for an investor looking for a long-term investment, with the aim to build a family office or as a legacy asset. It also does not come with any additional buyers stamp duty and ownership is open to foreigners, says Monteiro. There are only about 9,000 conservation shophouses in Singapore and only a handful are available for foreign ownership, he adds.
For price trends, recent transactions, other project info, check out Bussorah Street project research page
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