Three adjoining freehold shophouses along River Valley Road up for sale

image: Edmund Tie

Edmund Tie announced on October 21st that it is pleased to offer three adjoining freehold shophouses for sale via an Expression of Interest exercise. Edmund Tie is the sole marketing agent for the sale of 262, 264 and 266 River Valley Road,

Located on a prominent corner plot along River Valley Road and commanding a 18-metre wide frontage, the three adjoining freehold shophouses sit on a combined land area of 343.9 sq m (approximately 3,702 sq ft) and have a total built-up area of around 815.5 sq m (approximately 8,778 sq ft).

three adjoining freehold shophouses
The indicative guide price for the three adjoining freehold shophouses at 262, 264 and 266 River Valley Road is $21.9 million or $2,500 per sq ft on the built-up area (image: Edmund Tie)

Under the URA Master Plan 2019, the three adjoining freehold shophouses are zoned for “Residential with Commercial at 1st Storey” use at plot ratio 2.8 and have an allowable building height of up to 4 storeys.

The three adjoining freehold shophouses enjoy a strategic location within prime District 9. A myriad of amenities can be found within the vicinity, such as shopping malls, schools and eateries. Conveniently located 350 metres away from Fort Canning MRT station on the Downtown Line, the shophouses are also within 800 metres from two other MRT stations – Dhoby Ghaut MRT interchange and Somerset MRT station. They are about 10 minutes’ drive to the Central Business District (CBD), 5 minutes’ drive to Orchard Road and a short walk away to Robertson Quay and Clarke Quay.

The redevelopment of the current Liang Court site into a new integrated development will inject more vibrancy to the Singapore River and its surrounding areas, further anchoring its image as an exciting waterfront precinct and lifestyle destination. Together with the Urban Redevelopment Authority’s plans to revitalize Orchard Road under Master Plan 2019, the attractiveness of the property’s location will be further enhanced.

Executive director of investment advisory, Tan Chun Ming, said: “All three shophouses are fully tenanted and are hence well-suited for investors seeking immediate income.”

“Unlike many shophouses in prime districts which are under conservation, the subject properties fall within a non-conservation area,” he added. “This is therefore a rare opportunity to purchase freehold shophouses in prime districts without the constraints of conservation regulations. The purchaser can explore carrying out additional and alteration works to maximize the plot ratio, or consider the redevelopment of the properties into a mixed-use development or serviced apartments, subject to authorities’ approval.”

The indicative guide price for the three adjoining freehold shophouses at 262, 264 and 266 River Valley Road is $21.9 million or $2,500 per sq ft on the built-up area. 262 & 264 River Valley Road and 266 River Valley Road, each with individual land titles, can be purchased separately.

The Expression of Interest exercise for the three adjoining freehold shophouses will close on Wednesday, 2 December 2020 at 3pm.

River Valley is a planning area located within the Central Area of the Central Region of Singapore. The planning area shares boundaries with Orchard in the north, Museum in the east, Tanglin in the west and Singapore River in the south. River Valley in central Singapore is a mixed-use area comprising residential, commercial and leisure developments. It was so named because the area lay in a valley between Fort Canning Hill and Pearl’s Hill.

River Valley Road, a historic urban waterfront along Singapore River is a vibrant, lifestyle destination offering a good mix of hotel, commercial, entertainment and residential uses, housed in a charming mix of old shophouses and new developments.

Redevelopment of River Valley began in the 1960s with a clean-up of the polluted Singapore River. In 1969, then Prime Minister Lee Kuan Yew tasked the Public Works Department and the Public Utilities Board to develop a plan to clean up the river and Singapore’s waterways. By 1983, all the lighter companies were moved from the banks of the Singapore River, as were squatters and hawkers. A major clean-up operation was then implemented.

Under the Urban Redevelopment Authority’s 1991 Concept Plan, the Clarke Quay and Robertson Quay areas along River Valley Road were zoned for entertainment, residential and hotel accommodation purposes. During the 1990s, numerous private condominiums were also built along River Valley Road.

Mr Paul, chief mortgage officer at iCompareLoan, said that “although the Covid-19 pandemic makes real estate sales difficult at the moment, the three adjoining freehold shophouses at River Valley Road for sale is in a good location and is hard to come by.” Mr Ho believes smart investors who are flush with cash, will resort to value hunting instead of choosing real estate which are still selling at unbelievable prices.

Mr Ho added that given the land scarcity in Singapore, demand for freehold shophouses in Singapore will continue to rise over the long term. He pointed out that Singapore continues to be a global financial centre and a trade hub with high livability scores – all of which attracts high net worth investors to the Republic. All these factors will inevitably fuel demand for commercial property in Singapore he added.

Mr Ho believes that value buys in the property market right now are are landed inter-terrace houses and shop houses. Landed inter terrace houses per square feet price on the built-up area is usually less than $1,000 and commercial properties.  But Mr Ho cautioned that the bigger challenge for buyers of commercial property is securing the best commercial loans.

“With the right loan, the buyer can save thousands, if not tens of thousands of dollars,” he said. Adding, “which is why they would have to work with established mortgage brokers who can provide them free service.”

Written by Ravi Chandran

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