For Enquiries, Please call / SMS (+65) 97697639

Three shophouses in Bugis, Duxton up for sale by tender

Three shophouses hit the market yesterday – a pair in Bugis for a “fire sale” price of $9.8 million and one in Duxton Road for about $4.9 million.

PropNex Realty associate director Loyalle Chin said that the Bugis units at 13 and 14 Bali Lane are selling at such a “huge discount” because the owner wishes to cash out quickly to redeploy capital for personal use.

The guide price of $9.8 million is about $3,797 per square foot (psf).

By contrast, shophouses at 11 and 12 Bali Lane were sold last month for $18.8 million, or about $4,100 psf.

The two-storey units now on sale are zoned commercial and near Bugis MRT interchange.

They are partially tenanted and on a 999-year lease with a land size of 1,470 sq ft and a total floor area of about 2,581 sq ft.

The units are suitable for investment, retail or office use, said marketing agent PropNex.

New commercial developments nearby include the 30-storey Grade A office tower at Guoco Midtown and the Shaw Towers project.

Mr Chin said: “Bugis is becoming increasingly attractive to a growing pool of multinational companies… as well as to millennials, who appreciate the diversity in Bali Lane and Haji Lane filled with live music, coffee places and attractive food and beverage establishments.”

Separately, the $4.9 million guide price for 42 Duxton Road translates to about $2,408 psf of floor area, PropNex said.

Nearby sales include 37 Duxton Road, which was transacted in January for $5.65 million, or $2,897 psf.

The shophouse is zoned commercial and on a site of 1,118 sq ft, with a total floor area of about 2,035 sq ft.

It is rented to Kokuyo, a furniture and space design company with offices in China, Thailand, Hong Kong, Malaysia and Singapore.

The firm has occupied the premises since 2011 and is apparently looking to stay.

PropNex said that the monthly rent of $13,500 represents a yield of 3.3 per cent.

Mr Chin said: “With rental yields generally compressed between 1.8 per cent and 2.5 per cent, this is certainly one of the highest rental yields for a shophouse in the Central Business District (CBD).”

Duxton is near three MRT stations – Outram Park interchange, Tanjong Pagar and the upcoming Maxwell, slated to open by 2021.

PropNex said yesterday that Singapore real estate now offers the best investment prospects in Asia-Pacific for next year, following a report by the Urban Land Institute and PwC.

Mr Chin added: “With the influx of ultra-high-net-worth individuals and institutional funds from Hong Kong and mainland Chinese, our market forecast for heritage shophouses and commercial assets in the city-fringe region including District 1 (CBD) and District 7 (Bugis) will continue to rise by at least 5 to 10 per cent for the next 12 months.”

The tender exercises for 13 and 14 Bali Lane and 42 Duxton Road close at 3pm on Dec 17.

By The Straits Times

Share via :

You might be interested in …

Leave a Reply

Your email address will not be published. Required fields are marked *