Heartland shophouses in Little India, Bedok and Toa Payoh for sale

Sep 15, 2021

THREE heartland estate properties comprising a freehold conservation shophouse and two Housing Development Board (HDB) shophouses have been put up for sale by their appointed marketing agents via expressions of interest (EOIs).

CBRE on Wednesday put up a three-storey freehold conservation shophouse in the Little India district at an indicative guide price of S$4.8 million.

Located 44 Upper Weld Road, it is a three-minute walk away from Jalan Besar MRT Station and is served by numerous bus services along Jalan Besar and Serangoon Road, which lead to other arterial roads and expressways such as the Central Expressway.

The shophouse sits on a freehold land plot of about 1,020 square feet (sq ft) with a total floor area of 3,000 sq ft. As such, its indicative guide price implies S$1,600 per sq ft.

It is zoned commercial under the Urban Redevelopment Authority 2019 Master Plan and within the Little India Historic District Conservation Area. Foreigners are eligible to purchase it with no additional buyer's stamp duty or seller's stamp duty on the transaction.

The property is presently fully tenanted and therefore will be able to provide the buyer with immediate, stable rental income, said CBRE in its press statement.

Clemence Lee, CBRE's senior director of capital markets in Singapore, said he is confident the property will appeal to a wide pool of potential buyers given its "excellent attributes" such as its freehold tenure and prime city fringe location.

"Subject to approval from the relevant authorities, the successful buyer can explore various change-of-use options for the shophouse, such as restaurants, fitness centres or medical clinics, to unlock capital values and enjoy rental upside in the future. The buyer will also have naming and signage rights to the property," he said.

CBRE also highlighted a ramp-up of rejuvenation activities in the Little India and Farrer Park enclaves. In the agency's view, upcoming new developments - such as LYF@ Farrer and a mixed-use development at the recently transacted Northumberland GLS site - will further boost the area's vibrancy in the near future.

"As border restrictions gradually ease and Singapore is expected to experience recovery in the tourism and hospitality sector in the near future, the property will be in an advantageous position to benefit from the spillover of commercial activities in Little India, which has been earmarked by the Singapore Tourism Board as one of Singapore's must-see tourist destinations. This will then also translate into strong rental and capital appreciation in the medium to long term for the buyer," Mr Lee added.

The EOI for 44 Upper Weld Road will close on Oct 21, 2021 at 3pm.

Separately, Savills Singapore on Wednesday announced two HDB shophouses for sale at a collective guide price of S$7.5 million, via an EOI exercise which closes on Oct 14, 3pm.

Both are operating as commercial units on the ground floor with residential quarters on their respective second storeys. They are fully leased, providing investors with a ready income, and may be purchased jointly or separately, said Savills.

As the two shophouses are treated akin to commercial properties, they are also eligible for purchase by foreigners.

The first shophouse is located along Bedok North Street 1 within the Bedok main town centre, a stone's throw from Bedok MRT station and also adjacent to Bedok Mall and Bedok Point, which is slated for redevelopment into a mixed residential and commercial property.

Spanning 1,593 sq ft, the shophouse is currently leased to a jeweller-cum-optician and enjoys main road frontage. According to Savills, it will also continue to enjoy high footfall and spillover traffic from the neighbouring malls.

The other shophouse for sale sits within Toa Payoh Central hub and spans 1,238 sq ft. It is within a short walking distance to the Toa Payoh MRT station and the Courts mega store, said Savills, and is currently leased to a licensed money lender and a beauty salon.

Noting how businesses in the heartlands have "flourished" as a result of work-from-home arrangements, Yap Hui Yee, director of investment sales & capital markets at Savills, said this trend was "especially dense" in housing estates such as Bedok and Toa Payoh, where residents tend to shop near where they live.

"Due to changes in consumer demand, the retail performance in heartlands have been resilient through the pandemic and many investors have shifted their focus to these suburban shophouses which are rare and limited in supply," said Ms Yap.