Two freehold conservation shophouses in Lavender Kallang are up for sale. At S$13.2 million, how valuable is it to buy? Can foreigners buy it? What can you use it for? Let’s dig in to find out!
What do we know about the conservation shophouses?
- Prices at S$13.2 million translated to S$4,635 psf of land area.
- Stretching upon a land of 2,838 sq ft with a built up area of 8,417 sq. ft.
- Includes an attic with a rear extension of 4 storey.
- Located at 52 Foch Road
- Commercially zoned.
What are the development opportunities of Lavender Kallang conservation shophouses?
Both the properties hold freehold title. Hence, there is less limitation upon the activities and development for these properties. Plus, there is no timeline like leasehold. So, the owner can pass the properties for generation unless it comes in the way of public development in the future.
The shophouses are permitted to operate F&B business as well as services like office. Currently, the ground floor is rented to a coffee shop. And some office tenants are occupying the upstairs units.
Hence, the new owner can readily enjoy the rent yielded from these tenants. The rental growth for the future is also attractive as the shophouses are allowed to operate the most demanding activities like F&B.
Foreigners are eligible to buy
The shophouses are commercially zoned. According to URA’s Master Plan, 2019, it can be commercially used under the Jalan Besar Secondary Settlement Conservation Area. This means foreign investors can buy the property without any restriction. They will also be exempted from Additional buyer’s stamp duty (ABSD) and seller’s stamp duty upon purchase.
Spacious front yard
The properties have a wide 18 metre large frontage along Foch Road. Hence, the shophouses are close to the street with enough room for parking and open space. It would facilitate the own privacy of the shophouses. But it won’t be too detached from the walking traffic. Therefore, it can easily draw the attention of customers from its own private exclusivity.
The conservation shophouses are divided into seven units. Each of them is installed with individual air conditioning and toilets. Some units on the upper floor even have double ceiling height. That makes the rooms look better. Also, make the units more open and bright.
Room for growth
Right now, the conservation shophouses are only built till the 4th storey. However, it can be developed into a total of 6th storey. Thus, the potential owner of the shophouses can build an additional 2 floors as per his convenience.
The conservation shophouses are only 5 minutes away from Bendemeer MRT station on the Downtown Line. Hence, passersby commuting to and from the MRT will bring foot traffic to businesses running in the shophouses. Plus, the inhabitants of the shophouses can easily travel through the nearby public commute.
How valuable are these conservation shophouses?
The expression of interest for these shophouses close on August 17 at 3 pm. With that in mind, is it worth the buy? Well, the shophouses definitely are in a good location with opportunities for foot traffic.
Both locals and international buyers can purchase them. Besides, shophouses today range from anywhere between S$10 to more than $40 million. Being at a lower range of S$13.2 million, it deserves a chance of consideration. What do you think?
Read more at Should you buy or sell Singapore shophouses in 2021?
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