Ravi Chandran
A Pair of Freehold Commercial Conservation Shophouses Opposite Outram Park MRT Interchange Exit H Up for Sale
- The Pair of Freehold Commercial Conservation Shophouses comes at an Attractive Asking Price of S$2,980 Per Square Foot Compared to Other Similar Shophouse Launches in the Vicinity
CBRE announced on Jan 13 that it is launching for sale a pair of freehold three-storey commercial conservation shophouses located at 13 & 15 Teo Hong Road, strategically facing Outram Park MRT Interchange Exit H.
The sole marketing agent for the pair of freehold commercial conservation shophouses, CBRE is conducting the sale via an Expression of Interest exercise. Interested parties are invited to submit their offers to CBRE by 9 February 2021 at 3pm.
Table of Contents
Enjoying a prominent frontage of approximately 11.6 meters along Teo Hong Road, the pair of freehold commercial conservation shophouses occupies a land area of 3,476 square feet. According to URA Masterplan 2019, the shophouses are zoned for “Commercial” use under the Chinatown Historical District (Bukit Pasoh) Conservation Area, an area which exudes a nostalgic architectural and historical charm.
An in-principal approval from the authorities to conduct Additions and Alterations (A&A) works on the pair of freehold commercial conservation shophouses has been obtained. Part of the A&A works include the construction of an open terrace on the second floor and an attic above the third level, with the former overlooking the greenery at the park located behind the property.
Upon completion of the A&A works, the total floor area of the pair of freehold commercial conservation shophouses will be approximately 11,070 square feet.
Currently, the shophouses boast of excellent specifications such as a regular and column-free layout and a ceiling height of above 4 meters on the ground floor. In the day, the shophouses enjoy natural lighting which can reach far into the interior spaces due to the high ceiling and windows at the front and back of the property.
The guide price for the pair of freehold commercial conservation shophouses is S$33 million, which works out to approximately S$2,980 per square foot on the estimated floor area of 11,070 square feet.
Mr Clemence Lee, Senior Director, Capital Markets at CBRE Singapore says, “Adjoining freehold shophouses in the CBD, especially those of 13 & 15 Teo Hong Road which are conveniently located just across an MRT exit, are typically tightly held and rarely available for sale. We believe that the asking price of S$2,980 per square foot will entice astute investors if they were to compare it to similar properties which were launched for sale in the vicinity.”
In November 2020, 6 Bukit Pasoh Road was marketed at an asking price of S$3,750 per square foot, while 44 & 46 Bukit Pasoh Road were asking for S$3,473 per square foot.
Meanwhile, demand for 999-year/freehold shophouses has been strong over the past months. Some recent transactions include 151 Telok Ayer Street which was transacted in December 2020 at S$13.5 million (S$4,225 per square foot on gross floor area), 198 South Bridge Road was transacted in December 2020 at S$27 million (S$4,316 per square foot on gross floor area), 89 Amoy Street in November 2020 at S$29.8 million (S$4,005 per square foot on gross floor area) and 77 Amoy Street in October 2020 at S$29.8 million (S$3,916 per square foot on gross floor area).
Mr Lee continues, “To be sold with vacant possession, 13 & 15 Teo Hong Road is akin to a blank canvas, allowing the successful buyer to immediately conduct A&A works to curate an iconic flagship building which is tailored to their needs. Coupled with the flexibility of having multiple potential uses such as F&B, retail, office, serviced apartments or hotel, we are optimistic that the subject property will appeal to a wide pool of buyers such as boutique real estate funds, family offices, high net worth individuals and corporates who are seeking to capitalize on the vibrant yet understated F&B and lifestyle scene in the Bukit Pasoh / Keong Saik area.”
CBRE said that the flexibility of having multiple potential uses for the pair of freehold commercial conservation shophouses is subject to approval from relevant authorities.
The Bukit Pasoh / Keong Saik area has evolved into a trendy F&B and lifestyle enclave which is home to an eclectic mix of fancy boutique hotels such as KēSa House and Hotel 1929, as well as designer restaurants such as OSO Ristorante, Restaurant Ember and Burnt Ends. The locale also houses popular cafes including Potato Head Folk, The Lokal, Humpback and Luxe Sydney, trendy cocktail bars such as Gibson Cocktail Bar and The Library Bar, as well as The Working Capitol, which offers collaborative work spaces. Ee Hoe Hean Club, one of Singapore’s oldest millionaires’ clubs and Straits Clan, a by-invitation-only private members club, are also in the vicinity.
In addition to the proximity to Outram Park MRT station, the freehold commercial conservation shophouses are easily accessible by major arterial roads and expressways including New Bridge Road, Cantonment Road, Central Expressway and Marina Coastal Expressway.
Mr Paul Ho, chief mortgage officer at iCompareLoan, commenting on the sale of the freehold commercial conservation shophouses at Outram said, “this will be appealing to investors because it is an alternative to putting money down on residential properties.”
He added, “As far as commercial real estate goes, shophouses are good investments especially in an area likeOutram Park.”
Potential buyers have to ensure that they have the up to date on the current valuation of the property as it will determine the maximum loan and the possibility of having to top up the equity to qualify for financing a commercial property. Buyers should also use calculators to see if the mortgage payments on the loan is affordable given their income.
