For $11.9 million, a portfolio of HDB shophouses is available

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Marina View Residences contractor

Shophouses for commercial use in the CBD are now ranging from $5,000 to $6,000 per sq ft and fringe areas fetching $3000 per square foot, according to Mary Sai, executive director of capital markets at Knight Frank Singapore. Even commercial strata space in the CBD has reached records, with prices soaring to $4,000 psf.

Marina View Residences contractor associated with IOI Properties, emerged the winner after submitting the only bid amounting to $1.15b equivalent to $1,378.5 psf.

Sai is therefore seeing certain local buyers turning to HDB shophouses as an alternative. “HDB shophouses are a viable option for investors in Singapore who don’t want to be part of the strata commercial or shophouse market,” she says. In contrast to foreigners, Singaporean investors can purchase shophouses with living space on the upper floors. “The additional stamp duty charged to buyers for such units is likely to be lower than those for pure residential units,” she adds.

Knight Frank is the exclusive marketing agency for the portfolio consisting of the four HDB shophouses. The seller is a business which purchased the shophouses in the past five years. The shophouses are now up to purchase by private treaty. They can be bought either individually or as portfolios.

The two HDB shops are located adjacent to each other located at the 88 Circuit Road in the Macpherson/Mattar Precincts. The properties are located within walking distance to Macpherson’s Macpherson Interchange station and Mattar MRT station. It is close to the Macpherson Community Centre, the main food and market are also within walking distance. The catchment area is expected to expand as new residents move in to the 363-unit Macpherson Blossom HDB blocks sometime during the middle of the year.

The two units on 88 Circuit Road are two-storey HDB stores with living quarters above. The two units have the total area of 1,184 square feet. On the ground level include a minimart as well as a hardware shop. The units on the upper levels are homes. The properties are leased for 76 years beginning on April 1 1993. Thus that there are 45 years remaining in the contract. The units come with a price cost of $2.65 million and are available to purchase either separately or in combination.

Two additional HDB shop units are situated within Hougang Avenue 1. One is located at Blk 102 while the other one is located situated at Blk 108. Ground floor HDB shop located at Blk 101 Hougang Avenue 1 is located in a strata of 1,001 square feet. Three tenants reside in the space comprising an apparel shop along with a hair salon as well as the optical shop. The shop is leased for 88 years. lease beginning in 1995. Therefore, there is an outstanding balance of 59 years.

The other unit located at Blk 110 Hougang Avenue 1 is an two-storey HDB shop that houses a living space above. The two-storey structure, therefore is larger in strata of 1,571 square feet. The lower floor is leased to a laundry and hair salon and the top floor is used as a home.

Defu Lane and Defu Avenue Industrial Estate are both located close to Hougang Avenue 1. The HDB block is located near The Minton Condo, with 1,145 units, 164 units of The Promenade at Pelikat Condo and the 64-unit Primo Residence. Kovan MRT station, as well as Heartland Mall are in the area.

The one-storey HDB shop unit located at 101 Hougang Avenue 1 is listed with an estimated price of $3.2 million in comparison to the two-storey unit has a asking for $3.4 million.

Conservation shophouses are priced starting at $4.5 million in total, these HDB shops will attract local investors who are looking for alternative options and the possibility of a steady rental income, says Sai from Knight Frank. She says the portfolio is offered to the market with current tenancies, and could provide investors a return of 3%.

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