Top 3 Singapore shophouse for rental investment ideas

For real estate investors in Singapore, shophouses are a popular choice. And while there is quite a bit of competition in this space, there are still a few thousand shophouse for rental and purchase in Singapore to sate the collective appetite of investors.

In earlier blog posts, I talked about how purchasing a shophouse in Singapore makes for a fantastic rental investment. This post shows the top 4 shophouses that you can rent out (as a landlord) or rent (as a business tenant) for cash flow.

So, if you’re looking for a suitable investment property, check out some of the highly recommended shophouses for rental investment (or for rent) in Singapore!

1. 2-Storey Shophouse – Restaurant for Rent at Amoy Street

Price: Approximately S$40,000 / month (Approx. 6.90 psf)
Location: 74 Amoy Street 069893 Boat Quay / Raffles Place / Marina (D01)

Located in the Central Business District (CBD), this shophouse for rental is perfect for businesses that want to be close to the action. It has been approved for use as an F&B restaurant on all levels.

As we have mentioned in an earlier blog, F&B restaurants are the best way to maximise your earnings from your shophouse property investment in Singapore. That’s because any shophouse in popular areas approved for dining would drum up a lot of foot traffic and customers. Competition over these rare spaces will be fierce!

So if you ever chance upon such a shophouse in this area, you’d best snap it up! This particular property has been approved for dining, so you can swoop in to rent it, install your kitchen and menu, and then start cash-flowing as a restaurateur-tenant of a hot shophouse property with the best use case for its property type.

2. 2.5-Storey Shophouse for Sale on Kandahar Street (Home to The Premium Pancake)

Price: Approximately S$12 million

Just take one whiff of those freshly made pancakes, and you’d be off for viewing, too.

At approximately S$12 million, this splendid freehold shophouse sells for a more modest sum than its peers above. And that is despite its first level being home to the popular breakfast haunt, The Premium Pancake.

Besides, it has a great shophouse for rental prospects. Levels 2 and 3 of the shophouse are currently tenanted and cash-flowing well. They are being used for F&B and office space–both preferred options among commercial property investors. On top of it, the tenants currently fetch a combined rental income of around S$13,700 per month.

Popular restaurants and trendy stores surround the area, and the foot traffic is substantial. All in all, this is a lovely property that is also strategically placed. Investors should be jumping at the chance to snap up this reasonably priced shophouse for sale.

3. Pair of Shophouses for Sale on Joo Chiat Road

Price: S$16.5 million for the pair

Joo Chiat Road is a street that has been surrounded by residential estates. Joo Chiat is well known for its proximity to many mouthwatering dishes, from famous BaKuteh restaurants to Peranakan delights– all within walking distance.

In recent years, hip restaurants and food places offering different cuisines have moved into the area. Residential developments have followed suit. Joo Chiat Road has evolved into a melting pot of cultures and races. All of this serves to make this area an up-and-coming place for property investment in Singapore.

It is serendipitous then that a couple of shophouses are up for sale on Joo Chiat Road. Not only that, but they come in a package deal. Depending on how much rent you can get for each one, you could be looking at a duplex kind of income arrangement.

Quoting a sale price of approximately S$16.5 million for both, this is a pretty good deal given its location. It might not be ready for occupancy until June 2023, but this could be an excellent investment opportunity that can give you a terrific rental income for years to come.

Shophouse for Rental Investment

If you’re looking for a shophouse for rental or invest in, checking out these properties is a MUST! With their strategic locations and attractive price tags, they are bound to be noticed by more investors and snapped up soon.

Why am I saying this? Because I have proof of a shophouse with similar rental potential which got snatched up in the market not long after it was put for sale.

Undervalued 4-Storey Shophouse for Sale at North Bridge Road

The shophouse I am talking about is an undervalued 4-storey shophouse located in North Bridge Road. Quoted at approximately S$33 million asking price, the shophouse showed lucrative prospects just like the 3 above do currently.

Combined with a terrific location, it offered excellent cash flow from tenants for a few months.

The first level is currently occupied with rental revenue of around S$25000 per month. The tenancy contract will expire in May 2023, so there is some time before the new owner needs to find a new tenant.

Levels 2, 3, and 4 of the shophouse for rental rented for a more modest rental of around S$18000-S$20000 per month. The new owner can keep the current tenant a little longer for these levels—the contract expires in October 2023.

Hence, the owner who bought it scored big. He now has access to approximately S$41,250 cash flow in monthly rentals. Moreover, he could negotiate the asking price and bought the shophouse for approximately $23 million. As such, he truly acquired an undervalued shophouse with great fundamentals (location, pricing and rental).

Call me today to learn more about these types of properties. I can also match you to our other shophouse for rental investment listings if you wish. After all, I am here to help you find the perfect property for your needs!