Ravi Chandran
Joo Chiat conservation shophouse for sale at indicative price of S$4.5 million
CBRE on Feb 18 announced that it has been appointed as the sole marketing agent for a freehold two-storey conservation shophouse at 452 Joo Chiat Road. The sale is via an Expression of Interest exercise and interested parties are invited to submit their offer by 18 March 2020 at 3pm.
Sitting on a freehold site of about 1,100 square feet, the shophouse has a total existing built-up area of about 2,100 square feet. Strategically located in the heart of the bustling Joo Chiat/East Coast enclave, the subject property enjoys high visibility with a prominent 5-meter road frontage along Joo Chiat Road.
Under the 2019 Draft Master Plan, the Joo Chiat conservation shophouse is zoned “Commercial” with a plot ratio of 3.0 within the Joo Chiat Secondary Settlement Conservation Area, and a maximum allowable gross floor area of approximately 3,200 square feet, subject to the relevant authorities’ approval.
Indicative price for the Joo Chiat conservation shophouse is S$4.5 million, which translates to about $2,140 per square foot on the existing built-up area of 2,100 square feet.
Mr Clemence Lee, Senior Director of Capital Markets at CBRE says, “At a quantum of S$4.5 million, we expect interest for this unique and palatable asset to be well-received. This is on the back of several ongoing plans to rejuvenate the neighborhood which will also aid in increasing footfall to the asset; one of which will be the targeted completion of Marine Parade MRT station on the Thomson-East Coast line by 2023.”
Mr Lee adds, “The shophouse is currently fully tenanted which will provide the successful buyer with an immediate rental income. In the near future, the buyer can also consider maximizing the plot ratio by carrying out Additions and Alterations (A&A) works that will then further increase the asset’s appeal to command higher rents and price.”
There will be no additional buyer’s stamp duty or seller’s stamp duty imposed on local or foreign buyers of the Joo Chiat conservation shophouse.
The Joo Chiat conservation shophouse enjoys a readily large residential catchment from Marine Parade housing estate. Nearby commercial developments include I12 Katong, Katong Point and Parkway Parade. Accessibility to the shophouse is easily available via East Coast Parkway and major trunk roads such as Marine Parade Road, Still Road, Joo Chiat Road and East Coast Road, as well as the upcoming Marine Parade MRT station.
Joo Chiat Road is an arterial road and a residential conservation area in the eastern part of Singapore, and is located between Geylang Serai and Marine Parade Road. In 2011, the vicinity surrounding Joo Chiat Road was declared Singapore’s first Heritage Town. It is chosen, in part, because of strong efforts to promote its Peranakan culture.
In 1993, the area around Joo Chiat Road was gazetted as a conservation district. As a result, shophouses and bungalows reflecting the typical architectural styles of the turn of the twentieth century have been preserved, as well as many unique and straits eclectic style Chinese shophouses which give the area its true flavour. The area is also known for eateries specialising in Peranakan delicacies.
There are famous eateries which contribute to Joo Chiat’s popularity as a dining spot. There are various Vietnamese, Chinese and western restaurants, a multicultural food enclave, not just a Peranakan enclave. The restaurants and various eateries along the street are of varied cuisines but perhaps one particular cuisine stood out – Vietnamese. Joo Chiat has been known for being a “Little Vietnam”. There is cluster of Vietnamese restaurants, as well as Vietnamese grocery store, which were opened to serve the Vietnamese community in Singapore.
As the Kampongs in Geylang made way for HDBs, a museum to showcase the life of Malays was proposed in the 70s. This museum, Geylang Serai Malay Village, was completed in 1989 and located at the start of Joo Chiat Road. The period also saw many more buildings for retail purposes such as Galaxy Complex, Katong Mall, Roxy Square and Paramount Shopping Centre. During the late 90s and early 2000s, more schools and churches were built at the outskirts of Joo Chiat area, presumably for the larger community there.
The biggest gainers following the 2018 property cooling measures is likely be owners of strata portfolio of offices and shophouses approved for commercial use said one research. 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 and encumbrances.
Properties such as the Joo Chiat conservation shophouse pair may be bought under personal name, but total debt servicing Total Debt Servicing Ratio (TDSR) will apply on the individual’s income on such purchases. To buy a commercial or industrial property under company name, total debt servicing ratio TDSR also applies on the individual director’s income if the company is an investment holding company or an operating company that is loss-making or does not have sufficient cash flow to servicing the repayment.
Buyers or investors who are interested in the Joo Chiat conservation shophouse should consider approaching a mortgage broker who will be able to guide them through the best commercial loans that are available for the purchase of the prime properties.
