Prime shophouses in Kampong Glam and Serangoon Gardens up for sale

Knight Frank Singapore announced on Nov 5 that it is pleased to offer 2 prime shophouses in Kampong Glam and Serangoon Gardens respectively, for sale via Expression of Interest (EOI).

18 Bali Lane – one of the two prime shophouses

Located at the heart of Kampong Glam, 18 Bali Lane is nestled amongst excellent eateries and trendy retail shops. The 2-storey conservation shophouse with attic has a total built-up area of approximately 1,919 sq ft. With the support and promotion of the Singapore Tourism Board, the locality is popular among tourists and locals alike for its hipster vibes and colourful, vibrant neighbourhood.

The shophouse is zoned Commercial under the Master Plan 2014 and has a 999-year tenure. It is currently tenanted.

Ms Mary Sai, Executive Director of Investment and Capital Markets, Knight Frank Singapore, says, “With nearby 11 Bali Lane recently sold for S$18.8 million, the owner was encouraged to put up the shophouse at 18 Bali Lane for sale. The transaction at 11 Bali Lane translated to S$4,017 psf, and with a guide price of S$6.9 million for 18 Bali Lane, this reflects to about S$3,600 psf over the floor area.

“Another shophouse at Bussorah Street just a few lanes away with a balance lease of 83 years and land size of 1,741 sq ft also sold at S$5 million, in July last year.”

Another one of the prime shophouses is located at Serangoon Gardens

Serangoon Garden is one of the oldest estates on the island, and was built in the 1950s. The estate was built to house the British officers based in Singapore. The roads have British road names. The estate was upgraded in 2001 as part of the Singapore Government’s plan to improve the older private housing estates in Singapore. Open roadside drains were covered up. It has new streetlights and road signs, and the estate’s parks were also upgraded. Serangoon Garden Circus was used as one of the locations for the country-wide millennium celebrations.

Serangoon Gardens is a private housing estate in Singapore. There are a variety of types of housing, including terrace homes, semi-detached and bungalows. This area is popular with well-heeled Singaporeans and expatriates, with its close proximity to amenities and top international schools.

In the Serangoon Gardens estate, a corner, 2-storey shophouse with a land area of 1,618 sq ft and a built-up area of about 3,000 sq ft has also been put up for sale. The property has a 999-year leasehold tenure and is currently fully tenanted.

Ms Sai shares, “Serangoon Gardens is well-known for its rows of shophouses providing amenities such as F&B outlets and restaurants, banks, enrichment centres and beauty salons. The famous Chomp Chomp Food Centre and Serangoon Country Club are also situated nearby. The last transaction in the area was at 65 Serangoon Garden Way, which sold for S$8.8 million at the end of last year.”

The food and beverage outlets are located in the estate’s central area. Serangoon Garden Circus is at the centre of the estate. In this vicinity, there are cafés, restaurants, coffee shops, fast food restaurants and a shopping mall.

All the roads radiate from the circus, and the houses are located within walking distance. The estate has a tennis and squash centre at Burghley Drive. At Kensington Park Road, there is a country club known as Serangoon Gardens Country Club. Although the Country Club serves its in-house members, members of the public can also enjoy delicious food such as cantonese cuisine – Swatow Garden – which serves popular Hong Kong Dim Sum and dishes.

The guide price for the Serangoon Gardens shophouse is S$8.5 million.

As the 2 prime shophouses are zoned Commercial, there will be no Additional Buyer’s Stamp Duty and Seller’s Stamp Duty payable. Foreigners and companies are also eligible to purchase the properties.

The EOI for the 2 prime shophouses exercise will close on Thursday, 28 November 2019, at 3pm.

Mr Paul Ho, Chief Mortgage Consultant at iCompareLoan, said that despite the property curbs introduced by the Government last year, Singapore is still an attractive residential market for investors.

Although the property market exuberance has been curbed to some extent with the property cooling measures introduced last year, Singapore as a property market investment destination still remains among the top – shoulder to shoulder with other cities in the world like London, New York, Shanghai and Sydney.

“We have to be mindful that there is a lot of excess capital fluidity here and at 1.9 – 2 percent, Singapore has one of the lowest interest rates for home loans in the region,” he added.

Mr Ho, added, “the location of the two prime shophouses makes it an attractive buy. The prime shophouses are located in neighbourhoods which are renowned for their F&B outlets and restaurants.”

The biggest gainers following the 2018 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.

Mr Ho 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.”