Ravi Chandran
The three adjoining shophouses have a combined site area of approximately 3,542 sq ft and a total gross floor area of approximately 6,723 sq ft
Edmund Tie, the sole marketing agent for the sale of 65, 66 and 67 Syed Alwi Road, said on August 11 that it is pleased to offer the three adjoining units of two storey shophouses with mezzanine for sale via a tender exercise.
The three adjoining shophouses are located near the junction of Syed Alwi Road with the Jalan Besar thoroughfare, and within 400 metres to Jalan Besar MRT Station on the Downtown Line.
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Commanding a prominent 17-metre frontage along Syed Alwi Road, the three adjoining shophouses have a combined site area of 329.1 sq m (approximately 3,542 sq ft) and a total gross floor area of around 624.6 sq m (approximately 6,723 sq ft). Under the URA Master Plan 2019, the property is zoned “Commercial” under Little India Historic District.
Strategically located at the city fringe, the three adjoining shophouses are only minutes’ drive from the Central Business District (CBD) and Orchard Road.
A vibrant enclave that is rich in history and cultural heritage, Jalan Besar has attracted a diverse mix of uses including shops, restaurants, cafes, pubs, co-working spaces and boutique hotels. It is also a well-known food haven that is home to popular eateries such as Sungei Road Laksa, Swee Choon Tim Sum, Beach Road Scissors Cut Curry Rice and Ming Chung Restaurant amongst others.
Jalan Besar is a one-way road in Singapore, connecting Kallang and Rochor. Theside of Jalan Besar between Lavender Street and Syed Alwi Road was once swamp land. Flying ducks, snipe, fish, mud lobsters and multi-coloured snakes thrived there. The area was slowly reclaimed by dumping refuse. In 1923, the New World Amusement Park located off Jalan Besar was opened by the enterprising sons of Ong Sam Leong (after whom nearby Sam Leong Road is named), Peng Hock and Boon Tat.
In recent years, the Lavender/Jalan Besar area has undergone a transformation into a vibrant lifestyle location. With high-rise residential and commercial developments sprouting up, the area in which the two freehold redevelopment sites are in provides a diverse range of entertainment, cultural and lifestyle attractions including hipster cafes and bars that attract high footfall and immediate catchment.
Prominent landmarks include the newly completed ARC 380, City Square Mall, Jalan Besar Sports Centre, City Square Residences and the upcoming Sturdee Residences. The subject property is also well-connected to the key precincts in Singapore, such as the CBD which is only a 10-minute drive or train ride away.
The area has also undergone exciting rejuvenation in recent years such as the completion of Tekka Place integrated development and Centrium Square – a commercial and medical suites development. Other landmarks in the precinct are Mustafa Centre and City Square Mall.
Executive director of investment advisory, Swee Shou Fern, commented: “This is a rare opportunity to own three adjoining shophouses, which gives the potential buyer ample flexibility in terms of space utilisation.”
“As vacant possession of the ground floor space can also be delivered upon sale, it also offers investors the opportunity to reposition the property for alternative uses such as food and beverage, clinic, fitness centre or showroom, subject to approval from relevant authorities,” she added.
As the three adjoining shophouses is zoned commercial, it is not subject to additional buyer’s stamp duty or seller’s stamp duty and is eligible for purchase by both local and foreign buyers.
The indicative price for the three adjoining shophouses is S$8.8 million.
The tender exercise for 65, 66 and 67 Syed Alwi Road will close on 17 September 2020 at 3pm.
Mr Paul Ho, Chief Mortgage Consultant at iCompareLoan, said “despite the uncertainties surrounding Covid-19 pandemic, the US presidential election in November and the international trade tensions, 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.
The three adjoining shophouses will be especially attractive to investors because of its location and its freehold status, as investment properties of such nature are scarce in that area. The fact that there is also no ABSD or SSD imposed on the purchase of the property, adds to the attractiveness of the property.
As a commercial property, the Expression of Interest exercise for the hree adjoining shophouses is open to both local and foreigners, with no Additional Buyers’ Stamp Duty (ABSD) or Sellers’ Stamp Duty (SSD). 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.
In 2014, median shophouse price in Singapore peaked at $3,824 per square foot (psf) on land area. Due to the implementation of loan curbs such as the Total Debt Servicing Ratio (TDSR) however, demand for shophouses decreased in line with other types of property. In 2017, the median shophouse price stood at $3,301 psf on land area. Even post-TDSR, many shophouses managed to rise in value.
