The 999-year corner two-storey shophouse along Serangoon Garden Way is up for sale via public tender
A fully commercial two-storey shophouse located at 67/67A Serangoon Garden Way is up for sale via public tender. CBRE, the exclusive marketing agent for the commercial property invited interested parties to submit their offer by 7 May 2021 at 3pm.
Enjoying a prominent main road frontage along Serangoon Garden Way, the two-storey corner shophouse sits on a 999-year site of approximately 2,782 square feet and has a built-up area of some 4,165 square feet. It has the convenience of ample car parking facility located right at its doorstep.
The 999-year corner two-storey shophouse is currently occupied by a bank and the successful buyer will be able to enjoy stable rental returns from a good tenant covenant.
Indicative pricing is S$11.8 million, which works out to approximately S$4,241 per square foot based on land area of 2,782 square feet. Given that the 999-year corner two-storey shophouse is zoned for “Commercial” use, there is no Additional Buyers’ Stamp Duty or Sellers’ Stamp Duty, and both foreigners and companies are eligible to purchase the property.
Mr Michael Tay\, Head of Capital Markets, Singapore at CBRE, said, “At S$4,241 per square foot based on land area, the indicative pricing is compelling when compared to recent transactions.”
Most recent comparables include 56/56A Serangoon Garden Way which changed hands in December 2020 for S$6,996 per square foot based on land area of 2,123 square feet and 8/8A Kensington Way which was sold in June 2020 for S$3,076 per square foot on land area of 1,984 square feet.
Mr Tay added, “Since last year, we have observed an increase in the demand for sub-urban shophouses. Hence, the subject property presents a timely opportunity for both investors and end-users to own a prime 999-year corner shophouse in the bustling and affluent Serangoon Garden estate, which has a large residential catchment.
“Given that people are now adopting a hybrid work model where, in addition to going to office, they also have a work-from-home schedule, the possibility of them patronizing the shops in neighborhood establishments increases, and consequently, drives higher footfall to businesses housed in these shophouses.”
Beyond enjoying immediate stable rental income, for the long term, the successful buyer can consider exploring alternative uses for the property – including F&B, healthcare / educational institutions, showrooms, retail shops, fitness centres, home and lifestyle businesses – subject to approval from relevant authorities.
The vicinity of the 999-year corner two-storey shophouse is popular with Singaporeans and expatriates, given its proximity to various amenities. Prominent landmarks in the area include Chomp Chomp Food Centre, Serangoon Garden Market, myVillage at Serangoon Garden, Serangoon Gardens Country Club and the French and Australian International School. The locality is expected to benefit further with the nearby Tavistock MRT station on the Cross Island line, which is slated for completion in 2029.
Mr Paul Ho, chief mortgage officer at iCompareLoan, said: “the 999-year corner two-storey shophouse at Serangoon Garden Way is in a very likeable location. That it is currently occupied by a bank as its anchor tenant means that the investor into this property has the prospects of getting a stable passive income.”
“Business owners who need a fixed venue to run their ventures however, need to do a ‘Buy or Rent Commercial Property‘ analysis before they put down hard cash down to buy a property,” he added.
Before buying a commercial or industrial property, make sure to determine whether you are buying to invest or for own use. The considerations are different.
There are many types of commercial properties such as (but not limited to the following):
- Conservation properties
- Retail shops
- Office buildings
The tenure of the property (based on the land) are typically:
- 60 to 99 years
- 999 and Freehold (rare)
The structures of these properties are:
- Strata title
- Individual land title
How to evaluate a commercial property?
- Tenure of the property
- Rental yield
- Return of invested capital
- GST registration (goods and services tax)
- Calculation of property tax
- Management fees
- Interest rates of mortgage
- Types of commercial property
You may buy the property as individual, using a corporation’s name, or using your company’s name largely depending on how you want to use it.