Freehold conserved shophouses near Tiong Bahru Market for sale

A row of highly-coveted freehold conserved shophouses near Tiong Bahru Market for sale

• The fully-tenanted freehold conserved shophouses is an excellent opportunity for investors seeking an income-generating asset with potential upside for future growth.

Colliers International on October 21st announced that a row of four adjoining freehold 4-storey conserved shophouses located at 265, 267, 269 and 271 Outram Road will be up for sale via an expression of interest exercise (EOI) for at least S$50 million on Thursday, 22 October 2020.

The indicative price for the freehold conserved shophouses of S$50 million translates to approximately S$2,733 per square foot (psf) based on an existing Gross Floor Area (GFA) of approximately 18,295 sq ft (1,670 sq m).

The freehold conserved shophouses comprise an exceptional row of four contiguous freehold 4-storey conserved shophouses located within Tiong Bahru Secondary Settlement conservation area. It has a land area of 6,125 sq ft (569 sq m) and a Net Lettable Area (NLA) of approximately 16,049 sq ft (1,491 sq m).

Zoned for residential with commercial at 1st storey, it has a total of four commercial units on the 1st storey and 17 residential units spanning across the 2nd – 4th storey. The property had undergone Addition & Alterations (A&A) works back in 2019. Presently, the commercial units are leased to FoodPanda and an up-and-coming bistro bar, while the residential units are leased to a master tenant. The property currently enjoys full occupancy and is to be sold with existing tenancies.

Located along Outram Road, the freehold conserved shophouses have an excellent connectivity with the Central Expressway (CTE) and other major arterial roads. The freehold conserved shophouses are one bus stop away from Outram Park MRT Interchange Station and is about 5 minutes’ walk to the upcoming Havelock MRT Station on the Thomson-East Coast Line.

The freehold conserved shophouses are also conveniently situated near the vibrant streets of Tiong Bahru and numerous amenities, including popular eateries such as Tiong Bahru Bakery and Tiong Bahru Food Centre.

Mr Steven Tan, Senior Director of Investment Services at Colliers International, said, “There are only about 6,760 conserved shophouses in Singapore. As such, conserved shophouses tend to offer stable income and capital appreciation to investors, given their vintage charm and limited supply in Singapore.”

“The property is fully occupied and is excellent for investors who are looking for a ready income-generating asset with potential upside for future growth”.

Based on caveats lodged in URA REALIS, transaction activity before and post-circuit breaker period were relatively stable, indicating steadfast interest in shophouses despite the economic uncertainty. The most recent transactions of shophouses in Districts 1 and 2 were transacted between S$3,300 to S$3,800 psf.

Comparing with the freehold or 999-year leasehold commercial shophouses located in Districts 1 and 2, 265, 267, 269 and 271 Outram Road is located along the city fringe and offers a more attractive price. With shophouses in the city fringe area becoming more attractive, this opportunity is timely for investors who are on a keen lookout for shophouses especially in the city fringe location with potential upside for future capital appreciation.

Mr Tan added, “This property is located less than 200 metres from the contemporary enclave of cafes, specialty coffee joints and lively food market that are popular among the locals and tourists alike. In addition, residents staying in the shophouses get to enjoy the rustic and modern surroundings, and the absolute convenience that the locality brings about, including a short driving distance to the Singapore General Hospital (SGH) and Central Business District of Singapore”.

The EOI for the freehold conserved shophouses will close on Thursday, 19 November 2020, at 3 pm.

Mr Paul Ho, chief mortgage officer at iCompareLoan, said: “despite the economic conditions, the freehold conserved shophouses neat Tiong Barhru is a very good investment. It is an attractive investment because properties like shophouses will store their values into the future.”

Tiong Bahru is a housing estate located within the Bukit Merah Planning Area, in the Central Region of Singapore. Tiong Bahru was constructed in the 1920s by the Singapore Improvement Trust, the predecessor to the Housing Development Board and an entity of the British colonial authority providing mass public housing in Singapore and is the oldest housing estate in Singapore. The main estate consists of 30 apartment blocks with over 900 units of two to five rooms. There are also high-rise Housing and Development Board (HDB) flats and condominiums along Boon Tiong Road, Jalan Membina and Kim Tian Road which surround the main estate.

Since the mid-2000s, Tiong Bahru has undergone rapid gentrification and the neighbourhood has become synonymous with trendy cafes and indie boutiques amid pre-war architecture.

In 1945, two house shops were sacrificed to build a wet market on the Tiong Poh Road. The market was named after the Hokkien merchant and shipping magnate, Khoo Tiong Poh (1830 – 1892). However, the space in the market was too small to accommodate all the hawkers who desired a space. In 1955, the Tiong Bahru Market (Seng Poh Market) was constructed under the auspices of the National Environment Agency after some hawkers moved to an open area on Seng Poh Road. In 1993 and 2004, improvements were made to the market including a watertight roof, brighter lights, a broader walkway and garden lights. In 2004, the market was closed for two years for rebuilding.

The nearest Mass Rapid Transit station is Tiong Bahru MRT station of the East West Line. Bus services 5, 16, 16M, 32, 33, 63, 64, 75, 120, 121, 122, 123, 123M, 175, 195, 851, 970 and NR5 travel along Tiong Bahru Road.