Three conservation shophouses at Jalan Sultan on the market for $9.38 mil
By Timothy Tay
/ EdgeProp Singapore |
Three intermediate shophouses along Jalan Sultan are on sale at a collective guide price of $9.38 million. The leasehold shophouses will be put up for auction by Knight Frank on Oct 30. These properties can be acquired either individually or collectively, says Tricia Tan, the deputy director of auction and sales at Knight Frank.
The shophouses belong to two separate owners who have decided to put up their properties for sale simultaneously. These sites each sit on 99-year leasehold plots, and the land tenure for each plot was renewed in 2007. One owner holds two shophouses which sit on land areas of 967 sq ft and 938 sq ft respectively. The third shophouse, which sits on a 964 sq ft plot, belongs to the other owner.
Tan says that if a buyer wanted to acquire the properties individually, the guide price would be about $3.2 million each.
The three shophouses are currently leased to an architectural firm and a supermarket. The tenancies are set to expire by the end of this year, and the tenants are keen to continue their respective leases, adds Tan. Both tenants have been operating from their spaces for the past nine years.
“However, the owners are serious sellers and are looking to sell their properties now. Thus, they are keeping their options open and are willing to sell the properties with or without tenancy,” says Tan. In general, the average expected rental yield for shophouses in the Jalan Sultan area is about 2% to 3%, she adds.
The adjoining leasehold shophouses belong to two owners who are selling their properties simultaneously. (Picture: Samuel Isaac Chua/The Edge Singapore)
The properties are located within the Kampong Glam Historic District and Conservation Area. Under URA’s Master Plan 2019, they are zoned for commercial use and feature prominent road frontage along Jalan Sultan, which enjoys heavy footfall generated by the area’s food and entertainment options.
“These shophouse properties will likely attract investors such as family offices, as well as medium- and high-net-worth individuals, and boutique real estate funds. Shophouses in this area are highly sought after as investment properties and as owner-occupied assets,” says Tan.
Small and medium-sized companies could find this type of city-fringe office real estate more affordable, as it allows them to operate close to the city centre without incurring higher rental costs.
Tan adds that given the limited stock of available shophouses in the Kampong Glam area that are on the resale market — and the static supply of shophouses in Singapore — shophouse assets present an opportunity for mid- to long-term capital appreciation potential.
“Shophouse occupants have evolved from conventional trade companies to a trendier mix consisting of co-working spaces, boutique hotels, lifestyle cafes, nightspots and even Michelin-starred restaurants. This change in use and occupier mix has appealed to property investors in recent years,” she notes.
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