Conservation shophouses along Neil Road priced at $15.57 mil

By
/ EdgeProp Singapore
|
February 14, 2020 3:00 PM SGT
SINGAPORE (EDGEPROP) - A pair of adjoining shophouses along Neil Road in the Tanjong Pagar Planning Area have been put on sale by the owner. Marketed by the auction team at Colliers International, the properties will be sold in an Expression of Interest (EOI) exercise and have an indicative price of $15.57 million, which translates to about $2,800 psf on the total gross floor area.
Located at 65 and 67 Neil Road, the two-storey conservation shophouses sit on a 2,703.6 sq ft site which has a 99-year tenure from July 1989. The properties have a total gross floor area of 5,563.7 sq ft.
According to Colliers, the shophouses boast a prominent frontage along Neil Road, and enjoy heavy pedestrian traffic and high visibility. They are also near the Tanjong Pagar and Outram MRT Stations on the East-West Line. The shophouses are centrally located and the surrounding area is populated by a wide range of entertainment and F&B options.
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 The shophouses boast a prominent frontage along Neil Road, and are close to Outram and Tanjong Pagar MRT Stations (Picture: Colliers International)
The shophouses boast a prominent frontage along Neil Road, and are close to Outram and Tanjong Pagar MRT Stations (Picture: Colliers International)
Based on URA caveats, the shophouse at 57 Neil Road, another 99-year leasehold property that is on a 1,389 sq ft plot, fetched $5.5 million ($3,964 psf) when it was sold in June last year. Yet another shophouse at 71 Neil Road, occupying a 2,713 sq ft plot, was transacted for $16.3 million ($6,021 psf) last February.
The most recent shophouse transaction along Neil Road occurred last September, when the freehold shophouse at 116 Neil Road was sold for $9.65 million ($6,544 psf). The property sits on a 1,475 sq ft plot.
For the shophouses currently up for sale, an entertainment establishment is leasing both of the first floors, as well as the second floor of 67 Neil Road. Meanwhile, the second floor of 65 Neil Road is vacant.
According to Colliers, the vacant space could be used for a restaurant, clinic, commercial school, fitness centre, night club, karaoke, student hostel, or even co-living, subject to approvals. According to Steven Tan, senior director of capital markets at Colliers International, shophouses in District 1 and 2 are considered good investments because they are gazetted for conservation and are extremely limited in supply. In addition, shophouses in the Tanjong Pagar area are highly sought after by investors because leasing demand for such spaces is usually very healthy.
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Demand has also been enhanced following the announcement of transformation initiatives for Tanjong Pagar and the city centre, Tan says, adding that the shophouses are expected to attract funds, high-net-worth individuals, family funds, and end-users who would like to have their office or business in the town area.
He says: “There is ample space at the rear of the property for the loading and unloading of supplies as well as the setting up of an alfresco F&B area, subject to approval. We believe there is an upside for rental revision, particularly in a robust market with limited supply.”
The site of the two shophouses is zoned “commercial” under the 2019 Master Plan. As a result, both the additional buyer’s stamp duty and seller’s stamp duty are not applicable to the sale of the site. The EOI exercise for 65 and 67 Neil Road will close on March 12.
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