http://www.businesstimes.com.sg/arch...e-65m-20140708
Published July 08, 2014
Strata-titled space beside HDB Hub for sale at $65m
By sheena tan
[email protected]
[SINGAPORE] A row of prime heartland retail shops in Toa Payoh Central is up for sale by tender at an indicative price of $65 million, which works out to an average of about $11,245 per sq ft (psf) for the 5,780 sq ft property.
The average psf pricing seems high for a Housing Board retail shop, although a few consultants concede that there are not many records of transactions of such retail units for comparison.
Located in Block 190 of Toa Payoh Central, the property is a strata-titled shop subdivided for lease to four tenants, including Watsons. It has a remaining lease of 57 years.
Savills, the sole marketing agent, announced the sale yesterday but did not disclose the client.
Savills Singapore's managing director Steven Ming said that the property, located next to the HDB Hub, is along the "best stretch of shops there".
Property consultants The Business Times spoke to said that high human traffic enables this stretch of shops to command higher prices. For retail spaces, human traffic is most important, said PropNex's head of business space Roy Chong.
ERA's key executive officer Eugene Lim said that the space is part of the "most prime row of shops" in Toa Payoh Central. Anyone going to the HDB Hub will pass through that area, and the atrium in front of the shops, used for roadshows or events, also pulls in crowds.
Current listings on CommercialGuru show that monthly rents for units along this stretch can hit $50 psf; rents in this stretch can be 20 to 30 per cent higher than shops elsewhere in Toa Payoh Central, said Mr Lim.
"It's not a surprise that the selling price for this shop is at a premium."
The HDB Hub is the only retail centre serving Toa Payoh residents, Savills noted. The hub, integrated with Toa Payoh MRT station and the bus interchange, is also near exit points of the Pan Island Expressway (PIE).
"Prime HDB retail shop lots are a rarity, especially in Toa Payoh, one of the most populous and centrally located housing estates in Singapore," said Mr Ming.
Toa Payoh, HDB's second satellite town, is home to more than 109,000 residents.
He added: "The defensive nature of this investment also bodes well for the current volatile investment climate. We thus expect keen interest and immense competition for the property due to its location and rarity."
SLP International's executive director Nicholas Mak acknowledged that among the HDB town centres, Toa Payoh is one of the busiest and offers high visibility. Referring to the price, he commented that the property will not be sold if it is unreasonable, given that investors can be price sensitive and would expect a decent rate of return.
PropNex's Mr Chong said that if the rental yield is in the range of 3 per cent, the price would be justified. The tender closes at 3pm on Aug 12.
Reply With Quote
