Good Class Bungalow in Bukit Panjang and shophouse at Neil Road up for auction

By Charlene Chin

/ EdgeProp Singapore |

September 5, 2019 7:11 PM SGT

SINGAPORE (EDGEPROP) - A Good Class Bungalow (GCB) at 7 Chestnut Crescent in Bukit Panjang and a conservation two-storey shophouse at 65 Neil Road will be put up for auction on Sept 30. There are 39 gazetted GCB areas in Singapore, of which the highly sought-after locations are the Nassim, White House Park and Dalvey neighbourhoods.

“GCBs are seen as the crème de la crème of the Singapore property market and this presents a rare chance to own a GCB at a relatively affordable price. A key attraction lies in its redevelopment potential – from the current single-storey home to a 2½- storey luxury property,” says Steven Tan, director of capital markets and investment services at Colliers International.

Subject to relevant approvals, the buyer may also acquire an adjacent state land that spans 263.5 sq m (about 2,836 sq ft), which could help to lower the overall effective land rate below $975 psf, notes Tan.

The GCB put up for auction is set in a tranquil neighbourhood. It is a short drive from the Dairy Farm Quarry and Bukit Timah Nature Reserve. Other amenities in the vicinity include Hillion Mall, Petir Park, Pang Sua Pond, and schools such as Bukit Panjang Primary School, Assumption English School, CHIJ Our Lady Queen of Peace, and Fajar Secondary School.

The property is close to several train stations such as Cashew and Bukit Panjang MRT Stations on the Downtown Line, and Pending LRT Station.

For price trends, recent transactions, other project info, check out the GCB at Chestnut Crescent and Shophouse at Neil Road research page

SHOPHOUSE NEIL ROAD - The conservation two-storey shophouse with attic that will be up for auction is in Outram and within the Chinatown-Tanjong Pagar Conservation Area (Credit: Colliers International)

The conservation two-storey shophouse with attic that will be up for auction is in Outram and within the Chinatown-Tanjong Pagar Conservation Area (Credit: Colliers International)

Meanwhile, the conservation two-storey shophouse with attic also up for auction is in Outram and within the Chinatown-Tanjong Pagar Conservation Area. The owner is asking for at least $8 million ($2,800 psf). The shophouse has a gross floor area of 2,834 sq ft and occupies a land area of 1,413 sq ft. It is on a 99-year lease with effect from July 1989.

Colliers understands that the owner has engaged an architect to review potential additions and alteration works, which could add an estimated 603 sq ft to the gross floor area, bringing the psf price down to $2,500.

The ground floor of the shophouse is currently tenanted to an entertainment establishment, which has been leasing the space for the past 15 years. The second floor is tenanted to an occupier whose lease will expire by end-2019.

Subject to approval by the URA, the second floor of the shophouse can be for various commercial uses like a night club or karaoke, and even for residential purposes such as co-living operations, says Colliers.

The property, located on the cusp of the CBD, could potentially benefit from the government’s plans to rejuvenate the city centre under the 2019 Draft Master Plan, adds Colliers.

The shophouse is within walking distance to the upcoming Maxwell MRT Station on the Thomson-East Coast Line, which is slated to open in 2021. Nearby eateries include Maxwell Food Centre and Tanjong Pagar Plaza Market and Food Centre.

“Shophouses have always been a soughtafter class of real estate among investors owing to their prime locations, heritage charm and scarcity,” comments Tan. “Those in [the] prime areas are considered a good investment option owing to their superior location, healthy pedestrian traffic, and the vibrant activities in the vicinity. Generally, shophouses also see good leasing demand and enjoy relatively good return.”

He adds: “We have definitely seen heightened interest in such properties since new cooling measures were introduced in July 2018.”

Additional buyer’s stamp duty (ABSD) and seller’s stamp duty (SSD) are not applicable as the shophouse is zoned for commercial use.