Ann Siang Road shophouse hits new high of $3,760 psf; Sago Street shophouse at $3,256 psf

/ EdgeProp Singapore |

June 25, 2021 10:00 AM SGT

SINGAPORE (EDGEPROP) - Andy Goh, associate senior district director at SRI, has recently brokered the sale of two conservation shophouses in prime District 1 in the Core Central Region. Both have set new highs in their respective enclaves in terms of psf price, he says. Even though they are located on different streets on opposite sides of Chinatown, they both achieved the same absolute sale price of $9.28 million. “It’s purely coincidental,” he says. (See also: Tanjong Pagar conservation shophouse for sale at $10.2 mil)

Both buyers of the shophouses are local Singapore companies and seasoned investors, according to Goh. The three-storey conservation shophouse at 13 Ann Siang Road sits on a freehold land area of 1,250 sq ft, with a built-up area of 2,468 sq ft. The price of $9.28 million achieved in early June translates to $3,760 psf based on built-up area.

The property had previously changed hands last November, with a caveat lodged for $8.5 million. Hence, the seller made $780,000 in just seven months, notes Goh.

first level of 13 Ann Siang Road - EDGEPROP SINGAPORE

The first level of 13 Ann Siang Road is leased to an art gallery (Photo: Andy Goh/SRI)

The first storey of the shophouse is currently leased to an art gallery. Interested businesses in that space include those hoping to operate a bakery, retail business or even to use it as an office, says Goh. The upper floors are available for lease too, he adds.

The property is linked to a pedestrian path and staircase down the hill to Amoy Street Food Centre as well as the CBD. It is within walking distance to the Maxwell Food Centre and the upcoming Maxwell MRT Station on the Thomson-East Coast Line.

The other conservation shophouse is at 22 Sago Street, and is an intermediate three-storey shophouse facing the Buddha Tooth Relic Temple and Museum. The property is located just a 100m walk from the upcoming Maxwell MRT Station. The Sago Street shophouse has a footprint of 1,066 sq ft, with a built-up area of 2,850 sq ft. The property has a 99-year lease from 1991. The price of $9.28 million translates to $3,256 psf based on its built-up area. The caveat for the property has yet to be lodged. According to Goh, this transaction has set a new high in psf terms on Sago Street.

shophouse at 22 Sago Street - EDGEPROP SINGAPORE

The shophouse at 22 Sago Street was recently sold for $9.28 million translates to $3,256 psf based on its built-up area (Photo: Andy Goh/SRI)

The last time the shophouse at 22 Sago Street changed hands was in 2012, when it fetched $4 million ($1,404 psf). Another conservation shophouse located two doors away at 18 Sago Street changed hands for $6.78 million in 2013. No caveat has been lodged since then. Over the years, there have been few transactions on Sago Street as the shophouses there are tightly held, says Goh.

The shophouse at Sago Street is currently tenanted to a traditional Chinese shop that sells bak kwa. It has been operating there for the past 50 years. However, it has approval for F&B use for all three floors. “Conservation shophouses with approval for F&B use are perceived to be more valuable as the government controls the quota very tightly,” says Goh.

Demand for such conservation shophouses in the CBD and Chinatown outstrips supply, with 30 potential buyers for every one shophouse that enters the market, he notes. “These conservation shophouses are as coveted as Good Class Bungalows. Once you miss out on a deal, it’s very hard to find a replacement property.”

shophouse at Sago Street - EDGEPROP SINGAPORE

The shophouse at Sago Street is currently tenanted to a traditional Chinese shop that sells bak kwa who has been there for 50 years (Photo: Andy Goh/SRI)

Goh reckons that once the travel borders reopen, there will be another wave of buying from Chinese and other foreigners joining local buyers in Singapore. The conservation shophouses at Ann Siang Road and Sago Street are zoned for commrecial use. They are open to foreign buyers and are not subject to additional buyer’s or seller’s stamp duty. “These shophouses are desired as the buyers see the potential for capital gains over time,” says Goh.

Having been in the real estate industry for the past 16 years, Goh initially focused on high-end residences in the prime districts. But over the past five years, his attention has switched to conservation shophouses in the CBD area as his clients have pivoted towards that asset class, he says.