SINGAPORE (EDGEPROP) - A two-storey freehold corner shophouse located at 38 South Buona Vista Road, off Pasir Panjang Road is up for sale via expression of interest with a guide price of $7.98 million.

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The property sits on a land site measuring 2,171 sq ft with a 3.0 plot ratio that is zoned for residential use with commercial at the first storey. The shophouse has a total floor area of 4,176 sq ft. The guide price works out to $1,911 psf based on the total floor area. (Find Singapore commercial properties with our commercial directory)

The shophouse is located in the Pasir Panjang neighbourhood, among cafes situated along South Buona Vista Road. It is also within a short driving distance to amenities such as the Pasir Panjang Wholesale Market and Pasir Panjang Food Centre.

The shophouse is currently tenanted by a café and bistro on the ground floor and co-living space operator MetroResidences on the upper floor. The property currently yields rental income with a yield close to 4%, according to Mary Sai, executive director, capital markets, at Knight Frank Singapore, which has been appointed as the exclusive marketing agent for the property.

Sai believes that the property has strong capital appreciation potential, noting that freehold shophouses with high visibility continue to be trophy assets for investors and end-users. “On top of that, there is further upside for rental growth and redevelopment potential as its plot ratio of 3 is not fully utilised,” she adds.

Keen interest is anticipated for the property, which Sai attributes to stronger investor demand. “There is spillover demand into the shophouse market, as commercially zoned shophouses remain unaffected by the latest cooling measures,” she explains. In addition, Sai believes more buyers are now considering properties in the city fringe, given rising shophouse prices in central locations underpinned by the stronger interest.

The expression of interest exercise for the shophouse at 38 South Buona Vista Road will close on June 30 at 3pm.

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