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A two-storey conservation shophouse (pictured) located at 355 Beach Road will be placed under the hammer, with an indicative price of S$5.1 million, international property consultancy Colliers International announced Tuesday (07 October).
“Shophouses are typically favoured by medium- to long-term investors, who see the potential of rental and capital appreciation. This is particularly so for those that are located near to public transport nodes, and enjoy main road frontage and heavy pedestrian traffic,” said Grace Ng, Deputy Managing Director of Colliers International.
“Given the exciting plans in place for the Beach Road/Ophir-Rochor Corridor, there is potential for rental upside of more than S$10,000 per month. The space would be ideal for use as a food and beverage establishment or a pub, subject to relevant authorities’ approval,” she added.
Sited within the Kampong Glam historic and conservation area, the freehold shophouse zoned Commercial comprises a mezzanine level, has access to the upper level is via a side staircase, and occupies a land area of approximately 1,381 sq ft. The property is currently tenanted.
According to data tracked by Colliers International/URA, the current average transacted price for shophouses in the district is approximately S$4,700 per sq ft, which is a 20 per cent increase from some S$3,900 per sq ft in 2013. Colliers noted that a shophouse unit along Beach Road was transacted at S$2.18 million in 2010 and was subsequently re-sold at S$4.9 million in 2014, reflecting a capital appreciation of 125 per cent over 4 years.
Meanwhile, another freehold property will also be auctioned at the same time as the conservation shophouse.
A two-storey intermediate terrace house located at 117 Devonshire Road will be auctioned with an indicative price of S$4.4 million.
The property, zoned Residential, comes with an attic and occupies a land area of approximately 1,405 sq ft. The upper storey of the terrace house is accessible via a side staircase.
The property is also currently tenanted.
Ng said: “There are only 16 units of terrace houses along that stretch of Devonshire Road and the last transaction for a unit was way back in 2007.”
“Since both properties come with the added advantage of a side staircase to the upper level, the buyer will have the option of occupying part of the premises and rent out the upper level or vice versa. In addition, such properties in the respective locations are rarely made available for sale; hence, they will greatly appeal to investors and end-users,” she added.
Both properties will be auctioned by Colliers International on 29 October.
Image source: Colliers International
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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