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A prime four-storey commercial shophouse at 21 New Bridge Road has been put up for sale via tender for $6 million, or $1,333 psf based on its total floor area of around 4,500 sq ft, revealed Colliers International.
Located near Raffles Place MRT interchange station and Clarke Quay MRT station, the shophouse is nestled on a 1,443 sq ft site, which has a land tenure of 99 years starting from December 1928.
The site is zoned commercial under the 2014 Master Plan with a plot ratio of 4.2 and an allowable building height of up to 18.35m, or about six storeys based on the height of nearby shophouses.
Colliers noted that an additional premium of $5.64 million is payable to top up the lease to a fresh 99 years.
“This is a rare opportunity to acquire a conservation shophouse within the prime Singapore River planning district. The successful tenderer can apply for a lease top-up for the property, which we believe will offer good potential to enhance its value and rentability, making this asset a worthy long-term investment,” said Colliers International capital markets and investment services director Steven Tan.
Approved for F&B use until 28 December 2019, the shophouse is tenanted to a restaurant operator on a monthly basis. As such, it could be sold with vacant possession and on a “as is where is basis”.
Tan noted that demand for shophouses has been strong, with transactions for those valued at $5 million and above hitting a record level of $478.6 million during the first quarter of 2018.
“We believe shophouses – which are scarce in supply – will continue to appeal to a wide range of investors, including high net worth individuals, property funds and investment firms. In addition, properties with full commercial-use zoning are favoured by investors as Additional Buyer’s Stamp Duty and Seller’s Stamp Duty are not applicable,” he said.
The tender for the shophouse closes on 30 May.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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