Buyer has the flexibility to redevelop property into a mixed-use development
SINGAPORE – CBRE has been appointed as the sole marketing agent for the sale of a corner pair of freehold two-storey shophouses at 24 and 26 Moonstone Lane. The two properties are offered for sale as a bundle by Expression of Interest. Interested parties are invited to submit their offers by 11 March 2020 at 3pm.
Located off Serangoon Road, the subject property enjoys prominent frontage of about 11 meters along Moonstone Lane and has an average depth of 25 meters.
The two shophouses occupy a total site area of approximately 2,877 square feet and have a combined existing built-up area of approximately 4,628 square feet.
Under the 2019 Master Plan, the properties are zoned “Residential with Commercial at 1st Storey” with a gross plot ratio of 3.0 and a building height of up to six storeys. Consequently, the subject property can be redeveloped into a mixed-use development with total maximum allowable gross floor area of approximately 8,632 square feet, subject to relevant authorities’ approval.
The shophouses are currently fully tenanted which can provide the successful buyer with an immediate rental income stream. Both units are leased to retail shops and enjoy the convenience of having on-street car parking lots right in front at the doorstep.
Indicative pricing for the subject property is S$6.6 million, which translates to about S$944 per square foot on the proposed total gross floor area of 8,632 square feet.
Subject to the authorities’ confirmation on the development baseline, the development charge payable to maximize the plot ratio is estimated to be approximately S$1.55 million.
Clemence Lee, Senior Director of Capital Markets at CBRE, says, “Compared to shophouses located in the conservation areas, shophouses such as the subject property that are located in non-conservation areas will give the buyer more flexibility in redevelopment options. And as redevelopment opportunities in the Kallang Planning Region are rarely made available, we expect keen interest from developers and contractors who are seeking such occasional opportunities that are also of palatable sizes. The subject property will also appeal to private investors who are always on the lookout for well-located freehold shophouses.”
“The buyer can also expect to benefit from the subject property’s strong capital appreciation over the medium term. This is on the back of URA’s vision to transform areas along the Kallang River into a bustling lifestyle hub, as well as the properties’ proximity to two growing neighborhoods nearby – Bidadari and Kallang Whampoa which are expected to accommodate 13,000 new residential units by 2023,” adds Mr Lee.
Located less than ten minutes’ drive to the Central Business District, the properties enjoy seamless connectivity to the rest of the island via major expressways and arterial roads. The numerous condominiums in the vicinity such as The Poiz Residences, The Venue Residences and Shoppes, and the upcoming Jui Residences will also provide a ready catchment.
This article is contributed by CBRE Realty.