Special Feature

Opportunity opens to acquire a row of Toa Payoh HDB shophouses for $18 mil

June 16, 2023 3:00 PM SGT

Each shophouse for sale has a 753 sq ft, ground-floor commercial space and a 646 sq ft residential space on the second floor. The layout is efficient and this will make space planning easy. (Picture: Albert Chua/The Edge Singapore)

Keen-eyed property investors should always be on the lookout for opportunistic deals, especially quality assets that would value-add and strengthen any investors’ portfolio. This is more pertinent today when high interest rates mean that investors rely less on debt, preferring smaller-quantum assets that give more bang for their buck.

Investors now have such a chance to enhance their investment portfolio with the acquisition of a row of two-storey HDB shophouse at 8 Lorong 7 Toa Payoh. This 1,399 sq ft commercial property is on the market for $3 million each. There are 6 such units put up for sale.

“This is a rare opportunity for savvy investors to buy a resilient and stable rental-yielding asset in such a sought-after location, right in the heart of a mature HDB town,” says Aster See, the exclusive marketing agent for this shophouse. She adds that the relatively affordable quantum of the shophouse makes it suitable for entrepreneurs and investors.

EdgeProp's Landlens analytics tool provides a breakdown of the flats in the area, as well as resident profiles like age and income. (Map: EdgeProp Singapore)

HDB shophouses are a unique commercial asset in Singapore that provide a mix of commercial and residential spaces. Their resilience to market cycles and variety of uses makes them an attractive option for entry-level and experienced property investors.

Each shophouse for sale has a 753 sq ft, ground-floor commercial space and a 646 sq ft residential space on the second floor. The layout is efficient and this will make space planning easy.

In addition, the potential buyer has a choice to buy one unit, or consider the other adjoining units that are also on the market. This provides flexibility in terms of potential amalgamation to expand the business options.

For example, there is the potential to utilise the retail space as an F&B option to capitalise on the limited food establishments in the vicinity, which only comprises the nearby Kim Keat Palm Market and Food Centre. Other uses for the ground-floor space include lifestyle amenities such as a gym or yoga studio, or as a business space to be rented out for general office purposes.

8 Lorong 7 Toa Payoh. (Picture: Albert Chua/The Edge Singapore)

The location provides a large residential catchment, providing steady pedestrian traffic and retail footfall. According to data compiled by EdgeProp Singapore, the neighbourhood has a good mix of various age groups, and the majority are between 25 and 49 years old. Owner-occupiers account for 83% of the estate’s population.

Besides the mature HDB blocks, the area has several private residential developments as well as an upcoming BTO project called Kim Keat Heights. Condos in the area include Gem Residences along Lorong 5 Toa Payoh, and Trevista on Lorong 3 Toa Payoh.

The area will see a fresh group of residents move in when the 385-unit Kim Keat Heights is completed in 2027. This BTO development was launched as part of the May 2022 BTO sales launch, and it is about 150m from the HDB shophouse. Slightly further away are two more BTO projects — the 708-unit Kim Keat Ripples along Toa Payoh East, and the 472-unit Bishan Towers on Bishan Street 11.

“When these new housing developments are completed, the new residents will be a significant driving force for businesses in the area. This HDB shophouse will likely be able to command higher rents and rental income due to demand for commercial space,” reckons See.

The completion of new BTO developments in the vicinity will increase the resident population, and boost retail footfall. (Picture: Pei Chun Public School (foreground), beside it the construction of Kim Keat Heights BTO (left). By Albert Chua/The Edge Singapore)

Given the scarcity of available HDB shophouses in the resale market today, especially ones that are well-positioned in a mature and highly sought-after neighbourhood like Toa Payoh, this sale is a window of opportunity for investors to enhance their investment portfolio, says See. She also represents a group of veteran investors who collectively own over 30 shophouses across Singapore, and are looking to liquidate these assets to diversify and future-proof their investment portfolios.

She adds: "HDB shophouses have the potential to grow their capital value over a long period, making them an ideal investment for those looking for assets with capital appreciation and a viable exit strategy in the long term"

For more information,

Contact Aster See | 98416930

Marketing Director (R063006G)

ERA REALTY NETWORK PTE LTD

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