SINGAPORE (EDGEPROP) - A three-storey freehold terraced house on Niven Road, in the Mount Sophia Conservation Area in District 9, is being offered in an owner’s sale with a guide price of $3.8 million. With five bedrooms and a shared kitchen, the property has a floor area of 2,629 sq ft and a land area of 904 sq ft. This translates to $4,203 psf on the land area.
The property is zoned under “residential” in the URA Master Plan 2019 and the additional buyer’s stamp duty is applicable.
Completed in 1996, the terraced house was previously purchased in August 2016 for $3.25 million ($3,577 psf) in a private sale. The owner spent close to $400,000 renovating the house and getting it reconfigured to meet the guidelines from the authorities to operate it as a student hostel. It has received a URA Grant Written Permission (Temporary) for change of use to student hostel for up to nine tenants. This is for a period of three years, expiring on April 11, 2022.
The owner is looking to sell the property to reposition his investment portfolio. While there are students currently occupying four out of five rooms in the property on a short-term basis, the sale is subject to vacant possession on an “as is” basis.
Rent is at $1,000 per month for a room with a single bed, and up to $1,500 per month for a room with a double bed and en suite bathroom. With the existing five bedrooms, this could add up to gross rental income per annum of approximately $75,000 and translates to a gross rental yield of 1.97%.
The terraced house has approval to operate as a student hostel for up to nine students under URA guidelines (Photo: Knight Frank)
There is potential to add up to three more bedrooms. The property also comes with a private garage at the back.
Tricia Tan, deputy director of Auction & Sales at Knight Frank, says: “The property would appeal to boutique investors and buyers who appreciate the historical cultural flair in nearby Little India as it has unique features and an excellent location near to amenities, MRT stations and private schools.” The house is within walking distance to Plaza Singapura shopping centre and a number of MRT stations, such as Bencoolen, Dhoby Ghaut, Bras Basah, Rochor and Bugis.
The property is also surrounded by tertiary education institutions, such as Kaplan City Campus @ Wilkie Edge, a two-minute walk away; Kaplan City Campus @ POMO, a five-minute walk away; and Singapore Management University, a 10-minute walk away.
There have been several enquiries from interested parties, says Tan. However, given the circuit-breaker that is in place until May 4, it is uncertain if Knight Frank can proceed with its public auction on May 18.
Meanwhile, the property is available for sale by expressions of interest and by private treaty, in the event the public auction does not proceed as scheduled, adds Tan.
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