A 999-year leasehold shophouse at 198 Telok Ayer Street is on the market for $16.5 million. The two-storey building comes with an attic and sits on a 1,654 sq ft plot. It has a gross floor area of 4,171 sq ft. Based on the indicative price, this translates to $3,956 psf on the floor area.

The entire building is approved for F&B use and is currently tenanted to the Pantler café. Its location in the CBD means that it receives a high footfall from the large catchment of office workers. It is also close to three MRT stations – Tanjong Pagar, Telok Ayer, and the upcoming Maxwell station in 2021.

The property will be sold with its existing tenancy, and the new owner could be looking at a strong rental yield of about 2.5%, according to Loyalle Chin, associate branch director at PropNex Realty, the marketing agent for the shophouse.

“With Singapore's rising office rents and an existing strong rental yield of close to 2.5%, this shophouse is attractive to investors who are keen on a property for capital appreciation, or for their own usage,” says Chin.