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A cluster of three adjoining conservation shophouses along Smith Street has been launched for sale by public tender, carrying a guide price of $33.25 million or $3,500 per sq ft (psf) on a built-up area of around 9,500 sq ft, revealed marketing agent Savills Singapore.
The price reflects a gross yield of close to two percent, which bodes well given that recent notable shophouse transactions like 64 Club Street was sold for about $3,880 psf, while 77 Amoy Street and 75 Amoy Street were transacted for about $3,500 psf and $3,900 psf on built up area, respectively.
With a combined land area of around 2,784 sq ft, the freehold shophouses are zoned full commercial and have a total gross floor area of around 9,500 sq ft.
The corner plot is within two to five-minutes’ walk from the Chinatown and the upcoming Maxwell MRT stations respectively.
Currently, the shophouses enjoy 100 percent occupancy “with approved restaurant use on the first and second floors, backpackers’ hostel on the third floor and a TCM clinic at the attic”.
Suzie Mok, Savills Singapore senior director of investment sales, said they have received a good number of enquiries for the shophouses even before they were officially launched for tender.
“Recent shophouse transactions in District 1 continue to shore up prices and lend proof to shophouses being an extremely attractive asset class,” noted Savills Singapore investment sales director Donald Goh.
“These three shophouses’ excellent location along the Chinatown Food Street, smack in the heart of a tourist hotspot, puts it right up there amongst the creme de la creme of shophouses. It presents an unparalleled opportunity for the astute investor to own a rare freehold collectible in a buzzling F&B and tourist destination.”
With this, Mok expects the shophouses to set a new price benchmark within the much sought-after heritage conservation neighbourhood.
The tender for the shophouses closes on 25 September.
Eugenia Rosaline Shlaen edited this story. To contact her about this or other stories, email eugenia@propertyguru.com.sg
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