Ravi Chandran
CBRE is launching for sale via Expression of Interest, a pair of freehold two-storey shophouses located at 355 & 357 Jalan Besar.
The pair of freehold two-storey shophouses property sits on a combined land area of approximately 3,066 sq ft. Under the 2014 Master Plan, the site is zoned “Commercial” within the Jalan Besar Secondary Conservation Area, with a plot ratio of 3.0.
While the gross floor area is approximately 6,100 sq ft, conservation guidelines permit new rear extensions up to a building height of six storeys, subject to relevant authorities’ approval. Therefore, there is potential to increase the current gross floor area of the pair of freehold two-storey shophouses to approximately 9,198 sq ft.
The pair of freehold two-storey shophouses enjoy high visibility with approximately 11 m of prominent main road frontage along Jalan Besar.
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Within 300-metre proximity to Bendemeer MRT station, the property enjoys seamless connectivity to the key precincts in Singapore, while the CBD is accessible within an eight minutes’ drive.
In recent years, the location has seen vibrant transformation with high-rise residential and large-scale commercial developments sprouting up, offering a diverse range of entertainment, cultural and lifestyle attractions that brings extremely high footfall and immediate catchment. Prominent landmarks include the newly completed ARC 380, the upcoming Sturdee Residences as well as City Square Mall and City Square Residences.
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The pair of freehold two-storey shophouses is on the market for $14.3 million which translates into $2,344 per square feet based on the gross floor area.
Sammi Lim, Director, Capital Markets, CBRE said, “There has been a significant pick up in shophouse activities in the recent months, with an increased interest for quality shophouse assets for mid- to long-term investment. This is evident from the sale of two Jalan Besar development sites for S$13.8 million in June 2018, located just 300 m from 355 & 357 Jalan Besar.
“In recent years, city fringe locations like Jalan Besar have also become popular among investors due to their rental upside and potential for capital gains. Of particular interest are contiguous shophouses with asset enhancement potential as they present opportunities for value-add and plot ratio intensification. Some investors feel that the purchase of adjoining shophouses is akin to buying land and owning a boutique building. Such properties also provide the buyer with the flexibility and creativity to configure the space to suit an entire spectrum of commercial uses, catering to tenants or for own occupation.”
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The pair of freehold two-storey shophouses is currently leased to a single tenant. A public car park with ample parking spaces is located right behind the property and there is also parking available in the commercial buildings located in the vicinity.
“With its high visibility, the buyer will be able to maximize the value of the property for potential uses including F&B, corporate offices, co-working space, showrooms, educational centres or commercial schools, medical and healthcare centre, fitness centre, and associations.” Ms Lim added.
As a commercial property, the Expression of Interest exercise for the pair of freehold two-storey shophouses is open to both local and foreigners, with no Additional Buyers’ Stamp Duty (ABSD) or Sellers’ Stamp Duty (SSD).
CBRE is the sole marketing agent for this Expression of Interest exercise of the pair of freehold two-storey shophouses, which closes on 14 November 2018 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.
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.
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