Freehold shophouse in Geylang sold for $3.7 mil

By
/ EdgeProp Singapore
|
August 17, 2020 5:22 PM SGT
SINGAPORE (EDGEPROP) - On Aug 12, a freehold shophouse at 219 Geylang Road was sold for $3.7 million. The agent for the seller was Cruz Phua, associate senior sales director at SRI, who says that the property took less than a week to find a new owner. Phua closed the deal while he was still an agent with ERA, but he moved to SRI on Aug 12.
The property was listed for sale on July 23 for $4.2 million and the first viewing took place two days later on July 25. This prospective buyer then agreed to purchase the property on July 28, and the sales option was exercised on Aug 12.
219 Geylang Road - EDGEPROP Singapore
The shophouse at 219 Geylang Road (in blue) took less than a week to find a new owner. (Picture: Cruz Phua/SRI)
The shophouse sits on a 1,273 sq ft plot and has a total built-up area of about 3,000 sq ft. The buyer is reportedly acquiring it as an investment asset, but may utilise it as his own office space in the future, says Phua.
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In July, three neighbouring shophouses at 223, 225, and 227 Geylang Road were collectively put up for sale at a guide price of $12 million by CBRE. After factoring in an estimated development charge of $3.2 million, the price worked out to be $1,172 psf per plot ratio (ppr).
Phua is also marketing a 999-year leasehold shophouse at 79 South Bridge Road that is on the market for $13.8 million. The property is in the Boat Quay Conservation Area and close to the junction of South Bridge Road and South Canal Road.
The shophouse sits on a 1,595 sq ft plot and has a built-up area of 5,051 sq ft. The space is currently tenanted until 2024, says Phua, adding that the average rental yield for shophouses in the area is about 3%. He says that this property will appeal to investors looking for a stable, long-term asset and he has already fielded several enquiries.
79 South Bridge Road - EDGEPROP Singapore
The shophouse at 79 South Bridge Road (third from right) is close to the junction of South Bridge Road and South Canal Road. (Picture: Cruz Phua/SRI)
“The impact of the Covid-19 pandemic has placed pressure on some owners to sell some of their commercial properties, and I expect we will see more commercial listings appear on the market over the next few months,” says Phua.
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“Buyers are on the hunt for reasonably priced, freehold commercial assets, and although they are still very discerning I wouldn’t describe it as frenzied buying at the moment,” he says. Most are looking for properties that have full commercial zoning, and tenanted properties are highly desirable, he adds.
Check out the latest listings near Boat Quay Conservation Area, South Bridge Road and South Canal Road
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