The pair of 999-year leasehold shophouses were sold at $1,689 psf.
Two shophouses at 77 & 79 Dunlop Street were sold for $7.6 million at Knight Frank’s auction event on July 22. The pair of 999-year leasehold properties had a guide price of $8 million. They were initially offered in June this year.
The properties are in the Little India Conservation Area and sit on a 2,687 sq ft plot that is zoned “commercial” under the 2019 Master Plan. The two-storey shophouses have a total gross floor area of about 4,500 sq ft.
The sale price of $7.6 million translates to about $1,689 psf on the floor area.
Both shophouses are fully tenanted. The ground-floor unit at 77 Dunlop Street is leased to a 7-11 convenience store, while the other ground-floor unit is leased to a provision shop. The second-floor office space is amalgamated and is also leased.
When the property was listed for sale, the office space was leased for $2,300 per month, while the ground-floor units had a combined monthly rent of $10,150.
The most recent shophouse transaction on Dunlop Street was for 105 Dunlop Street, another 999-year leasehold property that changed hands for $3.9 million ($3,276 psf) on Jan 12, 2021. Nearby, the shophouse at 64 Dunlop Street fetched $3.1 million ($935 psf) when it was sold on Dec 9, 2020, while 80 Dunlop Street was transacted for $3.6 million ($3,835 psf) on Oct 14, 2020.
According to Sharon Lee, head of auctions at Knight Frank, there were at least two prospective buyers who approached the auctions team with serious intent to acquire both properties by the date of the auction. She adds that the final sale price achieved for the two shophouses was “quite good”.
Knight Frank’s auction also saw the sale of a 1,044 sq ft, corner shop unit at 71 Seng Poh Road for $3.2 million ($3,065 psf). The property had a guide price of about $2.8 million ($2,682 psf) and was an estate sale.
The 95-year leasehold property has a remaining tenure of about 43 years. It has dual frontage on Eng Watt Street and Seng Poh Road. The building also faces the Tiong Bahru Market and Food Centre.
Lee says that the property had attracted very strong buying interest in the days leading up to the auction despite its relatively short remaining land tenure. The property had an opening bid of $2.5 million ($2,395 psf), with most of the bids coming from two bidders.
Lee says she was a little surprised that competition for the shop unit managed to translate to a higher sales price compared to the guide price. However, she says that heritage properties are highly desirable and are rarely put up for sale, especially those in the Tiong Bahru area.