A row of Toa Payoh shophouses is for sale with a guide price of S$15.9 million

Nov 02, 2022

A row of six HDB shophouses along Toa Payoh Road have been put up for sale via an expression-of-interest (EOI) exercise, with a suggested price of S$15.9 million.

Four of the six shophouses at Lorong 7 Toa Payoh are neighbouring units with a total ground floor space of 743 sq ft apiece.

According to sole marketing agent Shophouse Collective, a branch of PropNex Realty, the $15.9 million guide price comes out to S$1,865 per square foot (sq ft) with an estimated gross built-in space of 8,501 sq ft (Nov 1).

There is a fifth neighbouring corner unit with an additional 1,506 sq ft of floor space.

"(This) improves space planning in concert with the other four surrounding apartments," Shophouse Collective noted in a press release.

"As a result, subject to the consent of the necessary authorities, a single buyer may subsequently merge the four adjoining shops and the corner adjacent unit into one larger retail shop or supermarket."

Furthermore, all of the ground floor units and living quarters are currently fully occupied.

According to the commercial real estate brokerage, buyers can expect a rental yield of 3% based on existing rental income.

It further stated that the upper floors of the shophouses are accessible via a separate lift lobby, allowing their living accommodations on the second floor to be rented on their own.

The shophouses are classed as "commercial," which means they are for sale to both locals and foreigners.

According to Shophouse Collective, the additional buyer's stamp duty will only apply to the living quarters on the second level, which account for a lesser percentage of the valuation.

Shophouse Collective founder and strategist Lukas Teo emphasised the scarcity of HDB shophouses in desirable locations.

"It is projected that commercial-titled HDB shophouses will remain in high demand due to their substantially greater yield compared to other types of commercial assets," he said.

The EOI for the shophouses will close on December 2 at 4 p.m.