SINGAPORE (EDGEPROP) - A freehold shophouse at 255 Jalan Besar is up for sale by public tender at a guide price of $22 million. The three-storey property occupies a site measuring 3,145 sq ft and has a gross floor area (GFA) of about 7,750 sq ft.

Situated in the Jalan Besar Secondary Conservation area, the property is zoned for commercial use with a gross plot ratio of 3.0 under the Master Plan 2019. As such, it has an untapped GFA of about 1,685 sq ft. “With a high development baseline of 9,435 sq ft under Use Group A (Commercial), the incoming buyer can maximise the plot ratio of the property without paying additional land betterment charge, subject to approval from relevant authorities,” says appointed marketing agent CBRE.

The guide price for the shophouse works out to $2,838 psf based on the GFA, or $2,331 psf based on the maximum allowable floor area of 9,435 sq ft.

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“Given the exceptional attributes such as freehold tenure, wide frontage, and potential for naming and signage rights, we expect strong interest from both investors and owner-occupiers,” says Michael Tay, CBRE’s head of capital markets, Singapore.

He adds that shophouses in the city fringe have seen growing demand in the past 12 months. Notable transactions include 203 and 207 Jalan Besar changing hands earlier this month for $38.5 million, while 301 Jalan Besar was sold for $26 million in May.

Joshua Giam, associate director of capital markets, Singapore, at CBRE, highlights that the new owner can maximise the plot ratio by building a rear extension or enlarging the current floor plate. Subject to approval from authorities, the shophouse could be converted for uses such as F&B, clinics, serviced apartments, co-living and hostels. “These initiatives will allow the new owner to maximise rental returns and capital value of the property,” Giam says.

The tender for 255 Jalan Besar will close on Nov 30 at 12pm.