Ravi Chandran
Three Little India conservation shophouses within heritage district is located close to an MRT Station
Cushman & Wakefield has been appointed as the marketing agent for the sale of three contiguous part two-storey, part two-storey with mezzanine conservation corner shophouses at 27, 29, 31 Dalhousie Lane.
The indicative price for the three Little India conservation shophouses is S$11 million, which works out to be about $1,415 psf (per square foot) on total floor area.
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The three Little India conservation are situated at the intersection of Dalhousie Lane and Madras Street, within the heritage district of “Little India Conservation Area” and zoned “Commercial” under the Master Plan 2014.
The three Little India conservation shophouses, with individual land titles, sit on a combined land area of about 3,870 sq ft and has an estimated total floor area of about 7,771 sq ft. They enjoy a prominent 50-metre dual frontages onto Dalhousie Lane and Madras Street. All three units are approved permanently for ‘restaurant’ use on the 1st floor and office use on the upper floors.
Little India is evolving into one of Singapore’s most vibrant districts with many new hotels, cafes, restaurants and bars setting foot into the area. In addition, upcoming developments such as the neighbouring Tekka Place and the future hotel development at Golden Wall Centre are expected to bring about exciting changes in terms of increased footfalls and new business concepts within the precinct.
The three Little India conservation shophouses will enjoy direct connectivity to Rochor MRT (DT13) after Tekka Place has been completed.
According to Mr Shaun Poh, Executive Director of Capital Markets at Cushman & Wakefield, “These prized corner assets are strategically positioned and enjoy superb frontage and close proximity to the Rochor area while situated within the Little India Heritage area. It enjoys the best of both worlds. In addition, it is extremely rare for shophouses to be located so close to an MRT Station.
The shophouses will likely appeal to discerning investors seeking to reap the potential gains from rental upside and capital appreciation upon the completion of Tekka Place and future projects such as the Golden Wall Centre site and possibly the Sim Lim Square redevelopment upon its successful en-bloc sale.”
Subject to authorities’ approval, other possible uses for the three Little India conservation shophouses include backpacker’s hostel, fitness centre, retail shops, enrichment schools or co-working space.
Foreigners are eligible to purchase the three Little India conservation shophouses and Additional Buyer’s Stamp Duty (ABSD) is not applicable. The three Little India conservation shophouses will be sold with existing tenancies and the sale is conducted via an Expression of Interest exercise which closes on 23 July 2019 at 3 p.m.
With the winding down of the success of residential en bloc sales, commercial properties are now trying to join in the bandwagon. Many commercial en bloc sale attempts fail because the asking prices are often too high. Two critical factors affecting the success of commercial sites going en bloc are pricing and location. Older commercial buildings especially, may see a need to catch the current wave as an exit strategy as their rental yields come under pressure due to competition from newer commercial buildings.
The government’s swift response to curb home price growth in July last year, has tampered the prospects of residential properties as attractive investments. Investors looking for alternatives to park their money could divert their attention to shophouses as they are not subjected to this round of purchase or sales restrictions.
The biggest gainers following the new 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.
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Properties such as the three Little India conservation shophouses 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.
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