A stunning three-storey conservation shophouse located at 76 Pagoda Street in the vibrant Chinatown district is currently on the market for $16 million. The property, which boasts a prime location and a 99-year leasehold, sits on a 1,372 sq ft plot of land and offers a generous gross floor area (GFA) of 3,500 sq ft, including an attic level. With an estimated GFA price of $4,571 psf, this shophouse presents an attractive investment opportunity.
Marketing agent Richard Tan of PropNex Shophouse Elites believes that the shophouse’s strong appeal is due to its location in the highly sought-after Chinatown enclave. He adds that shophouses in this area are highly sought after by owner-occupiers, high-net-worth individuals, and family offices as long-term investment assets. As a commercial property, foreign buyers and companies are eligible to acquire it without incurring additional buyer’s stamp duty or seller’s stamp duty.
Currently, the ground and second floors of the shophouse are leased to a popular restaurant operator, while the third floor serves as an office space. This allows for stable rental income for potential buyers. The most recent shophouse transaction on Pagoda Street was the sale of 31 Pagoda Street in March, which was sold for $19 million ($5,588 psf).
It is imperative for international investors to familiarize themselves with the rules and boundaries of property ownership in Singapore. In terms of buying real estate, foreigners are generally allowed to acquire condominiums with relative ease compared to landed properties, which have stricter ownership requirements. However, foreign purchasers are required to pay the Additional Buyer’s Stamp Duty (ABSD) at a rate of 20% for their first property purchase. Despite this additional cost, the stability and potential for growth in the Singapore real estate market continue to attract foreign investment. This is evident from the ongoing interest in Singapore Projects by overseas investors, as seen on websites like Singapore Projects.
In a separate transaction, a two-storey HDB shophouse at 210 New Upper Changi Road is also up for sale via an expression of interest (EOI) exercise with a guide price of $13.8 million. The property, which has a 103-year leasehold and a GFA of 4,607 sq ft, reflects a price of $2,995 psf based on GFA. According to Kris Ng, senior associate marketing director at PropNex, this property stands out for its long-term, stable tenants, namely healthcare retailer Guardian and United Overseas Bank (UOB), both of which have occupied the space for the past two decades.
Located in the bustling Bedok Town Centre, the shophouse is close to Bedok MRT Station, Bedok Mall, and Heartbeat@Bedok, making it a highly desirable location for businesses. As it is also a commercial property, foreign buyers and companies can acquire it without having to pay additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD).
The EOI exercise for both properties will close on Jan 10, 2025, at noon. Interested buyers can check out EdgeProp Singapore for the latest listings and price trends in commercial and industrial properties.