Ravi Chandran
Savills Singapore on Oct 8 announced the launch for sale of a rare two-storey HDB shop situated in the heart of Bedok Town Centre, by Expression of Interest.
The rare two-storey HDB shop is located on a near L-shaped plot along Block 210 New Upper Changi Road.
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The unit enjoys high visibility along the main thoroughfare of New Upper Changi Road near its junction with Bedok Central. Situated approximately 250 metres from the Bedok Integrated Transport Hub, the rare two-storey HDB shop enjoys seamless connectivity and benefits from high footfall traffic generated from the wide array of amenities in the vicinity, e.g. Bedok Mall, Bedok Point, Bedok Hawker Centre, Sheng Siong Supermarket, HDB shops, banks and coffeeshops. An open public carpark at the rear adds convenience.
The unit, with a total strata floor area of 377 square metres, has been approved for use as shop for both levels. Fully tenanted, it comprises a banking hall of 172 square metres on the ground floor, with separate access via an external common staircase to the upper floor gymnasium with a strata floor area of 205 square metres. The unexpired lease tenure for the rare two-storey HDB shop is approximately 59 years.
Suzie Mok, Senior Director of Investment Sales at Savills Singapore, who is handling the sale, commented: “This commercial asset with a primary incumbent ‘corporate blue chip’ tenant, will appeal to high net worth individuals, family offices and local and foreign institutional buyers seeking a stable and quality income stream with mid-term capital upside.”
“Its preeminent location nestled amid a spatial agglomeration of banking halls in the mature Bedok estate (i.e. the largest HDB estate in Singapore with a population catchment of more than 300,000) is an extremely rare and excellent opportunity”, she added.
The guide price for the tenanted shop is S$10.5 million with a gross rental yield exceeding 3 per cent. Foreigners are eligible to purchase the property as the entire unit is approved for commercial use with no additional buyer’s stamp duty.
The Expression of Interest exercise for the rare two-storey HDB shop will close at 3.00pm on 31 October 2019.
Bedok New Town covers a land area close to 9.4 km² with some 42% occupied for residential use. It was formerly a hilly region and hence the focal point of orientation of the town is the special landscaped park and sports complex built on the higher ground of the town. The residential blocks as well as the industrial area are planned based on the neighbourhood concept. The Bedok Town Centre together with Bedok Mall and Bedok Point are the focal points of Bedok.
Bedok Town Centre is conveniently located along New Upper Changi Road, which is accessible from the Pan Island Expressway (PIE) and East Coast Parkway (ECP). It is also near to the MRT station and Bedok Integrated Transport Hub. The town centre sees plenty of shops that offer a large variety of goods and services to residents and shoppers.
In addition, there are facilities within the vicinity like Bedok Mall, Heartbeat @ Bedok, East Coast-Fengshan Town Council, and food centres. This town centre offers a hive of activities at the eastern part of Singapore.
Bedok Town Centre also comprises the Bedok integrated complex, which is as big as 3 football fields. The complex was completed in 2017. Officially opened in February 2018, Heartbeat@Bedok is Singapore’s second community and lifestyle hub that houses multiple agencies managing different facilities, such as a community club (Kampong Chai Chee CC), polyclinic (Bedok Polyclinic), Bedok public library, senior care centre, ActiveSG East Bedok sport centre, and F&B and retail outlets in the heart of Bedok Town Centre.
The complex is now located right in the heart of the Bedok Town Centre within walking distance from the Bedok MRT station and Bus Interchange as well as nearby commercial malls. These make it easier for residents to come by for morning exercises at the atrium, quick swimming sessions at the pool and participate in many other integrated community programmes to enhance their quality of life.
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Mr Paul Ho, chief mortgage officer at iCompareLoan said, “shophouses are perceived as attractive investments because they can hold their values because of their locations. Shophouses are also valued because they give prominent presence to a business entity for them to be visible in a highly competitive environment.”
“The rare two-storey HDB shop will be especially attractive to investors because of it has a primary incumbent ‘corporate blue chip’ tenant,” he added.
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.
Properties such as the rare two-storey HDB shop 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.
