Ravi Chandran
The Kampong Bahru two-storey shophouse come with a guide price of $39.6 million ($2,250 psf on GFA) or $6.67 million per unit
JLL and Tuscany Realty Pte Ltd, on 14 Aug announced the sale of 69, 71, 73, 75, 77 and 79 Kampong Bahru Road – a contiguous row of six charming freehold two-storey conservation shophouses located within short walking distance of Outram MRT station.
Located along the bustling Kampong Bahru Road, the freehold contiguous row of Kampong Bahru two-storey shophouse commands an excellent main road frontage with excellent visibility. The Kampong Bahru two-storey shophouse occupies a combined land area of 7,068 sf and has total GFA of circa 17,600 sf. Under the 2014 Master Plan, the land is zoned “Commercial” and is located within the Blair Plain Conservation Area.
The Kampong Bahru two-storey shophouse is within a short walking distance to Outram Park MRT station and the upcoming Cantonment MRT station.
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It is also readily accessible to public transportation along Kampong Bahru Road. The new Kampong Bahru bus terminal is located just across from the property. The property is easily accessible to other parts of Singapore via the Marina Coastal Expressway (MCE), Ayer Rajah Expressway (AYE) and Central Expressway (CTE). With its city fringe location, the property is within a short 10-minute drive from the Central Business District (CBD).
Gazetted for conservation on 25 October 1991, the Blair Plain conservation area was predominately a residential district for well-to-do Chinese merchant families in the past. Today, the area has evolved into a trendy locale, characterised by its myriad of popular F&B, retail and lifestyle offerings.
Popular cafes and restaurants in the vicinity includes Highlander Coffee Espresso Bar, Stranger’s Reunion, MIZ Japanese Restaurant and Nylon Coffee Roasters. Notable developments in the area include the Singapore General Hospital (SGH) Campus, which consists of the Singapore General Hospital, Health Promotion Board, Health Sciences Authority, Academia, Ministry of Health, Duke NUS Medical School and four specialist centres, including National Heart Centre Singapore, National Cancer Centre Singapore and National Dental Centre Singapore.
The Kampong Bahru area is located about 500-metres away from future Greater Southern Waterfront. Outlined under the URA’s 2014 Master Plan, the relocation of the ports and terminals along the southern coastline will free up 1,000 hectares of land potentially for the development of office developments, retail malls, high-end residential towers, hotels, public spaces and a waterfront promenade.
Mr Clemence Lee, Senior Director, Capital Markets, JLL said: “This is a rare opportunity for an incoming investor or owner-occupier to acquire a row of 6 adjoining freehold shophouses in a central location, which is undergoing rejuvenation. The new owner will have the flexibility to amalgamate the units and to explore several value-add angles for the property, such as conducting minor refurbishment works, as well as exploring change of use such as converting the ground floor to F&B use and the 2nd floor office to alternative uses such as co-living and serviced apartment, subject to approval from relevant authorities.”
As the property sits on land zoned for commercial use, foreigners are eligible to purchase the property. There is also no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the purchase of the property.
The guide price for 69 to 79 Kampong Bahru Road is $39.6 million, which reflects around $6.6 million per unit. The shophouses can be sold either collectively or individually.
The Expression of Interest for the Kampong Bahru two-storey shophouse exercise closes on Thursday, 12th September 2019 at 3.00 p.m.
With freehold shophouses located within the CBD transacting at between $3,500 to $4,000 psf, Kampong Bahru two-storey shophouse with a guide pricing of $39.6 million or $2,250 psf presents one of the most compelling shophouses investment opportunity in the market. With the gradual transformation of the area, the incoming owner can expect to enjoy strong capital and rental upsides in the mid-to-long-term.
Mr Paul Ho, chief mortgage officer at iCompareLoan said, “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.”
“The freehold contiguous row of Kampong Bahru two-storey shophouse will be especially attractive to investors because of its location, as investment properties of such nature are scarce,” he added.
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