Ravi Chandran
The 5 adjoining Kampong Glam shophouses occupy a combined land area of approximately 4,892 square feet
CBRE is launching for sale, through an Expression of Interest exercise, a row of five contiguous freehold prime shophouses situated in the heart of the Kampong Glam Conservation Area.
The 5 adjoining Kampong Glam shophouses are located at 17, 19, 21, 23 and 25 Baghdad Street.
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With a prominent 60-meter triple-road frontage onto Baghdad Street, Bussorah Street and one side lane, the 5 adjoining Kampong Glam shophouses occupy a combined land area of approximately 4,892 square feet. While each shophouse has its individual land title, they are all held by a single owner. Under the 2019 Draft Master Plan, the site is zoned as full “Commercial” within the Kampong Glam Conservation Area.
The 5 adjoining Kampong Glam shophouses have areas ranging from 1,375 square feet to 2,416 square feet, contributing to a total floor area of approximately 8,013 square feet. Currently fully tenanted, the shophouses also come with existing F&B approvals that are rare in today’s market.
Yap Hui Yee, Associate Director, Capital Markets, CBRE said, “Kampong Glam is within the Ophir-Rochor Corridor that is fast becoming the next hotspot for live-work-play offerings, attracting strong interest from buyers. Given the subject property’s strategic location and strong property attributes, we are optimistic that the shophouses will garner keen interest from savvy investors with a medium-to-long-term investment horizon who are seeking to benefit from future rental upside and capital appreciation, in addition to enjoying immediate rental income. The five individual land titles also provide the successful buyer the additional option to keep some of the units or sell them independently in the future.”
Ms Yap continued, “We also expect strong interest from owner-occupiers looking to locate their business in a boutique building with naming rights. The adjoining shophouses provide the successful buyer with extra flexibility in space configuration to suit their own-use requirements or to cater to tenants’ needs. Some possible uses of the space include backpacker hostel, educational/enrichment school, healthcare/fitness center, retail outlets, F&B establishments, creative outfits or showrooms.
“Indicative pricing for the entire portfolio is S$23.8 million which works out to S$2,970 per square foot. As the subject property is full ‘Commercial’ zoned, there will be no additional buyers’ stamp duty or sellers’ stamp duty, and the opportunity is open to both local and foreign buyers.”
The 5 adjoining Kampong Glam shophouses is located within the heart of Kampong Glam historic district – once Singapore’s traditional Malay enclave that has been transformed into today’s bustling hub offering a diverse mix of cultural, entertainment, F&B and lifestyle attractions frequented by both locals and tourists. It is a stone’s throw away from cultural landmarks such as Sultan Mosque and the Istana Kampong Glam, the former Sultan’s Palace. Other nearby landmarks include DUO, City Gate, The Concourse and the upcoming Guoco Midtown.
CBRE is the sole marketing agent for the Expression of Interest Exercise of the 5 adjoining Kampong Glam shophouses, which closes on 16 July 2019, Tuesday at 3 pm.
The biggest gainers following the new property cooling measures is likely be owners of strata portfolio of offices and shophouses approved for commercial use. The property cooling measures affected almost all categories of buyers and is predicted to achieve its intended objectives of cooling demand and moderating price growth.
One report said investors looking for alternatives to park their money in the wake of property cooling measures, would divert their attention to the strata office and shophouse markets as they are not subjected to this round of purchase or sales restrictions/encumbrances.
In 2014, median shophouse price in Singapore peaked at $3,824 per square foot (psf) on land area. Due to the implementation of loan curbs such as the Total Debt Servicing Ratio (TDSR) however, demand for shophouses decreased in line with other types of property. In 2017, the median shophouse price stood at $3,301 psf on land area. Even post-TDSR, many shophouses managed to rise in value.
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Shophouses are perceived as attractive investments because they can hold their values because of their central locations and the freehold/999-year-leasehold of many of these properties. Shophouses are also valued because they give prominent presence to a business entity for them to be visible in a highly competitive environment.
Despite the curbs introduced by the Government last year, Singapore is still an attractive property market for investors. Although the market exuberance has been curbed to some extent, Singapore as a property market investment destination still remains among the top – shoulder to shoulder – with other cities in the world like London, New York, Shanghai and Sydney.
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