>

Two freehold Lavender shophouses selling from $23.8 mil

/ EdgeProp Singapore |

May 19, 2020 10:09 PM SGT

SINGAPORE (EDGEPROP) - A pair of freehold shophouses at 26 and 28 Cavan Road in Lavender are on the market with a guide price of $23.8 million. The two shophouses can be purchased collectively or individually. The properties are marketed by Loyalle Chin, associate branch director of PropNex Realty.

The four-storey shophouse at 26 Cavan Road sits on a 1,919 sq ft plot and has a total floor area of 6,781 sq ft. The property is zoned for hotel use and is currently tenanted to Hotel Snow. The building comprises 32 en suite rooms, and has a rental yield of 2.5%. The sale is not subject to additional buyer’s stamp duty and is open to foreigners.

EdgeProp Singapore: Two freehold Lavender shophouses selling from $23.8 mil

The shophouse at 26 Cavan Road is zoned for hotel use, and is leased to Hotel Snow (Picture: Loyalle Chin/PropNex Realty)

A former industrial site at nearby 48 Horne Road was recently granted planning permission for the development of a new 50-room hotel. The site was sold for $18 million, not including a development charge of $7.53 million.

The shophouse at 28 Cavan Road sits on a 1,959 sq ft plot and the building has a total floor area of about 6,800 sq ft. The land is zoned “residential with commercial on the ground floor”, and the four-storey building is tenanted to a woodcraft shop on the ground floor with residential accommodation on the upper floors. The sale of 28 Cavan Road is subject to additional buyer’s stamp duty.

Meanwhile, Chin is also marketing a corner shophouse at 259 Outram Road in Tiong Bahru, which has a guide price of $12.5 million. It is on the market for sale by tender, and the sale is subject to additional buyer’s stamp duty.

The corner shophouse at 259 Outram Road has a backpacker hostel license. (Picture: Loyalle Chin/PropNex Realty)

The freehold building sits on a 2,168 sq ft site and has a floor area of about 7,000 sq ft. The land is zoned “residential with commercial on the ground floor”, and has approval to operate a backpacker hostel. A hospitality operator holds the master lease for the whole building, and has sublet the ground floor to a restaurant which operates on the ground floor.

"We have received overwhelming response [for freehold shophouses] in popular city fringe locations like Kampong Bahru and Tiong Bahru, even before some of the 'circuit breaker' measures start to ease after June 1. These freehold shophouses have a strong appeal to institutional investors and construction firms seeking to lease out to foreign students or workers in Singapore," says Chin.

The expression of interest exercise for 26 and 28 Cavan Road will close on July 15, while the sale by tender for 259 Outram Road will end on June 12.

Check out the latest listings near Cavan Road

Read also: