Ravi Chandran
CBRE today (June 12) launched the sale of two freehold commercial shophouses, separately located at 148 Neil Road and 114 Jalan Besar, via Expression of Interest. Under the 2019 Draft Master Plan, the two freehold commercial shophouses are zoned ‘Commercial’ and there will be no Additional Buyers’ Stamp Duty or Sellers’ Stamp Duty imposed on local or foreign buyers.
Interested buyers of the two freehold commercial shophouses are welcome to do either a bundle or a single asset purchase.
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148 Neil Road – One of the two freehold commercial shophouses
148 Neil Road is a two-storey shophouse that also comprises a basement and an attic level. Strategically nestled within the Chinatown Bukit Pasoh Conservation Area, the property sits on a freehold site of approximately 1,587 square feet and has a total built-up area of approximately 4,197 square feet.
148 Neil Road is easily accessible by the nearby Outram Park MRT Interchange station and enjoys a large catchment from the commercial and residential developments including The Pinnacle@Duxton and the future Chinatown Plaza. Once an area known for the myriad of clans and association buildings, many of which such as the Ee Hoe Hean Club are still around, the vicinity has transformed into a vibrant F&B and lifestyle destination characterized by rows of conservation shophouses that attract an eclectic mix of tenants old and new, and housing restaurants and boutique hotels.
114 Jalan Besar -The other of the two freehold commercial shophouses
114 Jalan Besar Road is a two-storey commercial shophouse which has obtained permanent F&B approval for the ground floor. It occupies a land area of approximately 1,173 square feet and has a built-up area of approximately 1,901 square feet. Having recently undergone asset refurbishment works such as installation of brand-new M&E and air-conditioning system, the shophouse is completely transformed with refreshed building interiors while retaining the unique charm of a conservation shophouse.
As one of Singapore’s designated Conservation areas, Jalan Besar is home to a mix of old trades and new small commercial businesses, hotels as well as numerous eateries, markets and shopping malls that are frequented by both locals and foreigners.
Yap Hui Yee, Associate Director of Capital Markets at CBRE said, “According to the Urban Redevelopment Authority, there are only about 7,000 shophouses under conservation in Singapore. The sale of these two conservation shophouses present a rare opportunity for interested parties looking to own assets that are also a piece of national heritage.”
Ms Yap added, “To be sold on vacant possession, the shophouses will appeal to end-user occupiers seeking such property type as their business premises as they can immediately take over the space. Both shophouses enjoy prominent road frontages, which are important considerations for businesses. Interest is also expected from both local and foreign investors who are actively on the lookout for commercial shophouses with unique architecture that exude heritage charm for capital appreciation in the medium to long term.”
CBRE is the exclusive marketing agent for the two freehold commercial shophouses, and the Expression of Interest closes on 18 July 2019 at 3pm.
CBRE recently successfully marketed a 20,100 square feet Jalan Besar property. The property was bought by a unit of Kheng Leong Company for $38.71 million. When the Jalan Besar property was put up for sale in March, it had an indicative price of $47.4 million. The buyer of the Jalan Besar property plans to turn it into apartments, with commercial units on the ground floor.
Mr Paul Ho, Chief Mortgage Consultant at iCompareLoan, said that all these action in the commercial property market shows that despite the property curbs introduced by the Government last year, Singapore is still attractive 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<” Mr Ho said.
“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 biggest gainers following the new property cooling measures is likely be owners of strata portfolio of offices and shophouses approved for commercial use. One report said investors looking for alternatives to park their money in the wake of property cooling measures, would divert their attention to the offices and shophouses markets as they are not subjected to this round of purchase or sales restrictions/encumbrances.
How to Secure a Commercial Loan Quickly
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