A Freehold conservation shophouse at 216-4 Syed Alwi Road has been put up for sale via expression of interest (EOI). Propnex has been appointed as the marketing agent for the property.
The shophouse is 1,269 sq ft in size and is currently under construction. The guide price for the shophouse is S$3.88 million. This translates to S$3,057 psf, which is quite an impressive investment value as it ticks all boxes for a value buy:
- Undervalued property.
- Potential for great capital appreciation.
- Excellent strategic location.
- Commercial zoned and in line for F&B permit (Subject to approval).
- Potential foot traffic from surrounding businesses and MRT lines.
Unique competitive pricing for buyers
According to Squarefoot data, 146 shophouses were sold in the year 2021 from May 5 2021 to Oct 29, 2021. Out of which 49 transactions (33.5%) took place in District 8 as shown in the graph below. The increasing demand in District 8 suggests that people are looking at it. Despite the impact of Covid-19, the area is responsible for one-third of the shophouse transactions that occurred this year.
The graph below shows how the price of shophouses in District 8 over the year fluctuated.
Comparing the highs and lows of the year for District 8, it is interesting to note that both the highest and lowest are 99 years’ leasehold properties.
According to Squarefoot, on Jun 25, 2021, the lowest PSF recorded was at Serangoon Road for a shophouse. It was a 99-year leasehold property from 1956. The shophouse was sold at S$5.6 million which translates to S$1,384 psf based on land. On Aug 12, 2021, also in Serangoon Road, a shophouse, 99-year leasehold from 1995, was sold at $6.8 million, transacted to the highest land PSF of the year at S$6,735 psf.
The area has an average price of S$3,237 psf in the past 6 months of 2021 from May 5 – Oct 29.
The latest transaction in District 8 was conducted on Oct 27, 2021. The shophouse is at Desker Road. It was sold at $3.13 million translating to land PSF of S$2,668 psf suggesting that District 8 shophouse prices are now at its lowest, and can pick up soon.
The nearest transaction within the vicinity of 216-4 Syed Alwi is a shophouse at 215 Syed Alwi, the same street as this shophouse. It was sold at $4.8 million /S$3,744 psf on the land area on Aug 4, 2021.
All these factors reflect why Syed Alwi Shophouse offers a rare opportunity to buy an undervalued shophouse.
Opportunity for investors
The conservation shophouse has also made an application to change the usage of the property for restaurants in first and second story as well as the room mezzanine. F&B is one of the hottest industries in Singapore. If the Government approves the application, the buyer can use this property for F&B for attractive rental and investment return.
It also has a potential re-built-up area of 2,346 sq ft subject to approval by relevant Government authorities. If the Government permits for this re-built-up area, the price per square feet is at $1654 PSF before construction cost.
Moreover, the site is located in the Central Region of District 8 within the Lavender subzone. The land is zoned as “Commercial” under the 2019 Master Plan.
A freehold conservation full commercial property in central is an heirloom asset for investors. Foreigners and businesses are eligible to purchase the property. No additional buyer stamp duty or seller’s stamp duty will be imposed on the sale.
Attractive location and foot traffic
The accessibility of the shophouse also adds to its value. The property is only about 300 metre away from Jalan Besar MRT for commuters. It also has ample car parking in the surrounding for those who wish to drive to the location.
Next to the shophouse are the famous eateries, Da Lian Traditional Noodles, Teochew Noodles and Hakka beef balls. So, if the shophouse owner likes to set up a business, they would find heavy foot traffic from surrounding amenities.
Strong demand and an upswing in price recently
On analyzing Squarefoot data, it revealed District 8 is experiencing an upswing in price. According to the data, on Sep 21, 2021, a shophouse in Upper Dickson Road was sold at S$2,950,000 which translates to S$3,527 psf on land. On Oct 8, 2021, the same shophouse was resold at $3,675,000 which translates to S$4,394 psf on land.
On calculating the difference, it shows that in less than 3 weeks, the shophouse appreciated by approximately 24.5%.
“It is also near the Rochor area, which is currently undergoing urban transformation potential for capital appreciation,” says Tyson Yuk, Propnex Singapore.
Owing to all these factors, it is becoming increasingly popular among offshore investors thus making it an attractive buy for smart investors. The EOI is closing on Dec 21.
To grab this uniquely positioned undervalued shophouse, potential buyers can contact Tyson Yuk (license no: Propnex – L3008022J) at +6585333888 for a FREE consultation. Having a decade of experience in Singapore real estate, he offers unbiased consultant advice on the best value buys to his clients.
You can also contact my company’s mainline no: 6820 8000.
Official address: 480 Lorong 6 Toa Payoh, HDB HUB East Wing #10-01 Singapore 310480
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