$14.3 million for a pair of freehold shophouses in Jalan Besar

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October 10, 2018 2:31 PM SGT
A pair of shophouses at 355/357 Jalan Besar are on the market for $14.3 million via an expression of interest exercise, announced marketing agent CBRE. This translates into $2,344 psf based on the gross floor area.
The two-storey properties sit on a 3,066 sq ft lot with a freehold tenure, and the site is zoned for commercial use with a plot ratio of 3.0. They are located within the Jalan Besar Secondary Conservation Area. The shophouses have a total gross floor area (GFA) of 6,100 sq ft, but conservation guidelines permit new rear extensions up to a building height of six storeys, subject to approvals. Thus, the potential GFA of the redevelopment could increase to 9,198 sq ft.
The shophouses at 355/357 Jalan Besar are currently leased to a single tenant. (Picture: CBRE)
Recent months have seen a pickup in acquisitions of shophouse properties, and buyers are looking for quality shophouse assets for mid- and long-term investments, says Sammi Lim, director of capital markets at CBRE. She points out that two development sites 300m from the shophouses up for sale were acquired for $13.8 million in June this year, as evidence of the buying interest in the area.
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New developments have been recently launched and completed in the area, such as the newly completed ARC 380, the upcoming Sturdee Residences, and City Square Mall and City square Residences. The shophouses are 300m to the Bendemeer MRT station and is an 8 minute drive to the CBD.
The sale is open to both local and foreign buyers, with no stamp duties involved. The sale exercise closes on Nov 14.