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Tiong Bahru row of freehold shophouses goes on the market for at least S$50m

A ROW of freehold conserved shophouses near the Tiong Bahru Market food court will be launched for sale on Thursday via an expression of interest (EOI) exercise.

This comes hot on the heels of numerous other shophouses that have been put on the market or sold in recent weeks as the market continues to gain pace.

Located at 265, 267, 269 and 271 Outram Road, the four adjoining shophouses will carry an indicative price of at least S$50 million.

This translates to about S$2,733 per square foot (psf) based on an existing gross floor area of 18,295 square feet (sq ft), marketing agent Colliers International told The Business Times.

The four-storey shophouses are situated within the Tiong Bahru Secondary Settlement conservation area, and underwent addition and alteration works just last year.

They have a total land area of 6,125 sq ft and a net lettable area of around 16,049 sq ft.

Zoned “residential with commercial at first storey”, the row houses a total of four commercial units on the first floor and 17 residential units across the second to fourth floors.

Food delivery startup foodpanda and a bistro bar are renting the commercial units, while the residential space is leased to a master tenant, said Colliers.

The property is fully occupied and will be sold with the existing tenancies. It is thus “excellent for investors who are looking for a ready income-generating asset with potential upside for future growth”, said Steven Tan, senior director of investment services at Colliers.

The row of shophouses is one bus stop away from Outram Park MRT station, about five minutes’ walk from the upcoming Havelock MRT station, and a four-minute walk to the popular Tiong Bahru Bakery.

“Conserved shophouses tend to offer stable income and capital appreciation to investors, given their vintage charm and limited supply in Singapore,” said Mr Tan. He noted that there are only about 6,760 conserved shophouses in Singapore.

Based on caveats lodged on the Urban Redevelopment Authority’s Realis, transaction activity for such properties were relatively stable before and after the country’s “circuit breaker”, Mr Tan said.

Recent transactions of shophouses in Districts 1 and 2 were done at S$3,300-3,800 psf, he added.

The four adjoining shophouses along Outram Road, located in the city fringe, thus offer a more attractive price than the freehold or 999-year leasehold commercial shophouses in Districts 1 and 2, according to Mr Tan.

The EOI exercise for the property will close at 3pm on Nov 19.

This week, several other shophouses have been launched for sale, including ones in River Valley, Bugis and Telok Ayer.

By Fiona Lam The Business Times/ 21-Oct-2020

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