Special Feature
HDB shophouse near Old Airport Road for sale at $4.5 mil
A HDB shophouse with living quarters at 32 Cassia Crescent that is fully tenanted offers a unique opportunity for investors (Pictures: Albert Chua/The Edge Singapore)
For property investors, finding quality assets that can provide stable rental returns and healthy capital appreciation is becoming increasingly challenging given the current headwinds facing the economy as well as the property market.
In addition, the fresh round of cooling measures that came into effect on April 27 has further impacted the property landscape. As a result of the measures – which include an upward revision in additional buyer’s stamp duty (ABSD) rates applicable for residential properties – commercial assets have become more attractive to investors, as ABSD does not apply to this property type.
Given this backdrop, an HDB shophouse with living quarters at 32 Cassia Crescent that is up for sale provides a rare and unique investment opportunity. The two-storey shophouse has a strata area of 2,131 sq ft and is on the market for $4.5 million ($2,112 psf), with the price open for negotiation. It has 57 years remaining on its 99-year lease tenure.
32 Cassia Crescent is located in a mature HDB neighbourhood in the city-fringe
The first floor of the shophouse, measuring 1,011 sq ft, is designated for commercial use, while the living quarters are located on the second floor which spans 1,119 sq ft. Both floors are fully tenanted: the first level is occupied by a laundromat and a medical clinic with the leases expiring in 3Q2025, while the living quarters on the second floor comprise a total of six rooms that are let out to different tenants with leases expiring towards the end of this year.
Altogether, the property generates over $15,000 per month in rent. The owner is looking to sell the HDB shophouse with the existing tenancies, offering the future buyer immediate income and healthy rental yields on their investment.
Mature city-fringe location
32 Cassia Crescent is located in a mature HDB housing enclave bounded by Guillemard Road and Old Airport Road. Situated in the Geylang planning area, the neighbourhood boasts a city-fringe location that offers excellent connectivity, with the CBD, Marina Bay and Orchard areas all within a 10 to 15-minute drive away. In addition, the shophouse is located within walking distance of three MRT stations – Mountbatten, Dakota and Aljunied – and is served by several bus services that provide convenient public transport access.
The property is surrounded by various amenities including the Old Airport Road Food Centre
The property’s location in a well-established neighbourhood also means it is surrounded by a wide array of amenities. It is in proximity to popular schools such as Kong Hwa Primary School, Geylang Methodist Primary School, Geylang Methodist Secondary School, Broadrick Secondary School and Chung Cheng High School Main. There is also a number of healthcare facilities and a 24-hour NTUC FairPrice outlet, while Old Airport Road Food Centre, and various other coffee shops and restaurants, provide a wide array of F&B options.
With all these amenities within easy reach, residential properties in the neighbourhood, including the property at 32 Cassia Crescent, enjoy strong and consistent rental demand. As an added plus, the shophouse’s living quarters have recently been renovated, with the rooms thoughtfully updated with modern finishes and a tasteful, contemporary design that further boosts its appeal among potential tenants.
The kitchen area of the living quarters at 32 Cassia Crescent
The property’s location also benefits the commercial tenants on the ground floor, as shops in the Cassia Crescent area serve a wide catchment of residents. As such, businesses here see steady traction, especially those that serve a vital need in the neighbourhood. For example, at 32 Cassia Crescent, the laundromat that occupies the ground floor is currently the only one in the immediate area. As a result, it enjoys strong business from the large pool of residents who stay in the surrounding housing blocks.
Indeed, Cassia Crescent is home to an extensive and established community made up of a diverse range of residents. The strong community spirit inherent in the neighbourhood, in turn, further benefits shops in the area, as businesses can often thrive through word-of-mouth and recommendations among neighbours.
The shophouse has six bedrooms on the second floor, which are currently all rented out
Defensive asset with strong growth potential
In addition to being in a mature HDB area that provides strong rental upside, the property at 32 Cassia Crescent is uniquely positioned to leverage long-term growth potential, thanks to new and upcoming housing developments in the area.
In terms of public housing, the Dakota estate, which is close to the Dakota MRT Station and just a few minutes’ walk from Cassia Crescent, will see new HDB blocks built in the next few years. Last year, Dakota Breeze, a 954-unit Build-To-Order (BTO) project, was completed in the area, while BTO projects in the pipeline include the 443-unit Dakota Crest and the 421-unit Dakota One.
32 Cassia Crescent is positioned to leverage on the long-term growth of the surrounding neighbourhood that will be spurred by new housing developments in the pipeline
On top of the BTO projects, several condos are also under construction in the wider vicinity. These include Tembusu Grand, the 638-unit condo along Jalan Tembusu; The Continuum, an 816-unit condo on Thiam Siew Avenue; and Grand Dunman, a development on Dunman Road with over 1,000 units. Altogether, the new public and private housing projects will significantly boost the number of residents living in and around the area.
In tandem with the growing population, infrastructure in the vicinity is being improved on an ongoing basis, with roadworks currently being undertaken to help ease traffic and congestion. This is expected to improve the area’s connectivity, which in turn will translate into a more vibrant and accessible neighbourhood.
For these reasons, 32 Cassia Crescent is well-positioned to reap the steady appreciation in value expected for properties in the area, supported by strong fundamentals. As the population continues to grow, the property’s capital appreciation will be coupled with consistent rental upside, given that shops in the neighbourhood will cater to a wider pool of residents and tenants.
For more information,
Contact Aster See | 98416930
MARKETING DIRECTOR (R063006G)
ERA REALTY NETWORK PTE LTD
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