Two freehold shophouses at Tanjong Katong up for sale at S$13m

FRI, FEB 07, 2020


A tender exercise has been launched for a pair of freehold four-storey conservation shophouses at Tanjong Katong Road.

The two adjoining shophouses, which are being put up for sale by a family trust, are located within the Tanjong Katong Conservation area.

The guide price is S$13 million for the property, which translates to an estimated S$1,127 per square foot (psf) on the existing gross floor area.

The 3,811 sqft site is zoned 'Residential with Commercial on the 1st storey' with an allowable plot ratio of 3.0.

The pair of shophouses is made up of two ground floor shops and six apartments on the upper floors, with a combined gross floor area of approximately 11,530 sq ft.

In a news release, Karamjit Singh, the chief executive officer of property consultancy firm Showsuite Consultancy, said the vendors have been given approval by the Urban Redevelopment Authority (URA) for a proposed change of use of the current residential component to serviced apartments on a temporary three-year permission, while retaining the shops in its present form.

"Upon refurbishment, we believe this property could be suitable to be used as a boutique co-living development comprising nine apartments and 27 bedrooms with complementary F&B or services in the shop spaces below," said Mr Singh.

"If done well, the complete investment could yield north of 3 per cent per annum net returns, which is lucrative especially for a freehold asset."

He added that the purchaser could also explore the potential of housing students there, especially with foreign schools like the Canadian International School and the new Nexus International School campuses nearby.

"It is an interesting proposition for local investors keen on a freehold and affordable investment with recurring income from operations in a growing sector," he said.

Interested buyers must submit their offers by 2.30pm on March 11.