SINGAPORE (EDGEPROP) - Commercial shophouse prices in the CBD now average $5,000 to $6,000 psf, with fringe areas commanding $3,000 psf, says Mary Sai, executive director of capital markets, Knight Frank Singapore. Even strata commercial space in the CBD has hit record prices, soaring above $4,000 psf.
Sai, therefore, sees some local buyers turning to HDB shophouses instead. "HDB shophouses are an alternative for local investors who do not want to enter the strata commercial or shophouse space," she says. Unlike foreigners, Singaporean investors can buy shophouses with living quarters on the upper floor. "The additional buyer's stamp duty for such residential units tends to be slightly lower than pure residential units," she adds. (Find Singapore commercial properties with our commercial directory)
Knight Frank is the exclusive marketing agency for a portfolio of four HDB shophouses. The vendor is a company that acquired the shophouses more than five years ago. They are now available for sale by private treaty, to be purchased individually or collectively as a portfolio.
Location of 88 Circuit Road (Source: EdgeProp Landlens)
Two HDB shops are adjoining units at 88 Circuit Road in the Macpherson/Mattar precincts. The properties are within walking distance of the Macpherson Interchange station and Mattar MRT station. The Macpherson Community Centre, the main market and food centre are nearby. The catchment should widen when new residents move into the 630-unit Macpherson Blossom HDB blocks sometime in the middle of this year. (Find HDB flats for rent or sale with our Singapore HDB directory)
The two units at 88 Circuit Road are two-storey HDB shops with living quarters above. The units occupy a total floor area of 1,184 sq ft. The tenants on the first level are a minimart and hardware store. The units on the upper level are residences. The properties have a 76-year lease from April 1, 1993. Hence, there are 45 years left on the lease. The units have a price tag of $2.65 million each and can be purchased together or separately.
The location of 102 Hougang Avenue 1 (Source: EdgeProp Landlens)
Two more HDB shop units are within Hougang Avenue 1; one is at Blk 102, and the other is at Blk 108. The ground floor HDB shop at Blk 102 Hougang Avenue 1 occupies a strata area of 1,001 sq ft. Three tenants occupy the unit: an apparel shop, a hair salon and an optical store. The shop has an 88-year lease from 1995. Hence, there is a balance of 59 years.
The 1,001 sq ft shop unit on the ground floor of Blk 102 Hougang Avenue 1 (Photo: Knight Frank Singapore)
The other unit at Blk 108 Hougang Avenue 1 is a two-storey HDB shop with living quarters above. The two-storey unit, therefore, has a larger strata area of 1,571 sq ft. The ground floor unit is tenanted to a laundromat and a hair salon, while the upper floor is a residence.
Location of 108 Hougang Avenue 1 (Source: EdgeProp Landlens)
Defu Lane and Defu Avenue Industrial Estate are near Hougang Avenue 1. The HDB blocks are also near The Minton Condo, with 1,145 units, the 164-unit The Promenade @ Pelikat Condo and the 64-unit Primo Residence. The Kovan MRT station and Heartland Mall are in the neighbourhood.
The single-storey HDB shop unit at 102 Hougang Avenue 1 has a price tag of $3.2 million, while the two-storey shop unit has an asking price of $3.4 million.
With conservation shophouses priced from $4.5 million, these HDB shops should appeal to local investors looking for alternatives and the prospect of stable rental income, adds Knight Frank's Sai. She notes that the portfolio is being offered for sale with the existing tenancies and would give investors a yield of close to 3%.
The 1,571 sq ft HDB shophouse with living quarters above at 108 Hougang Avenue 1 (Photo: Knight Frank Singapore)
Check out the latest listings near 102 Hougang Avenue 1, 88 Circuit Road, Macpherson, The Promenade @ Pelikat, Primo Residence, Mattar MRT station, Kovan MRT station