A shophouse in the Telok Ayer conservation area for $17 million or 8 townhouses in Kovan for $28 million?
Investors will have a couple of options should they be looking at commercial properties with worthwhile current and future values.
Shophouses situated near MRT stations
At the outset, shophouses are rare commodities in Singapore’s real estate industry. When they are situated near MRT stations, their value could be considerably more.
The Boon Tat Street shophouse comes with an attic and is expected to fetch around $17 million. It has been put up for sale via an expression of interest exercise and has permanent food and beverage (F&B) approvals granted for both floors.
Zoned for commercial use, foreigners are eligible to purchase it without additional buyer’s stamp duty or seller’s stamp duty. This may prove an attractive buy in the eyes of investors with deep pockets.
The site has a 999-year lease and a land area of 1,759 sq ft with a land rate of $4,388 psf ppr. It is situated between the Telok Ayer and Raffles Place MRT stations, with easy access from the Marina Coastal and Central expressways by car. Its current tenant is the Michelin-Starred restaurant Cheek by Jowl.
The property’s proximity to the Central Business District (CBD) is a big plus point, though its conservation status may mean additional costs in its maintenance and upkeep. Recent transactions in the Telok Ayer area include a unit at Amoy street which sold for $25 million and another for $18 million.
$28 million for 8 freehold townhouses in Kovan
Further up north, 8 townhouses are going en bloc for $28 million. There is a development charge of $6.1 million bringing the land rate to approximately $1,082.9 psf ppr. Should a 10% balcony bonus be included, the land rate goes down to $1,052.5 psf ppr.
The massive 22,484.9 sq ft site is a freehold one, with a plot ratio of 1.4. The allowable height for the site is up to 5 storeys and can potentially hold 29 apartment units with an average size of 1,076 sq ft.
The location is prime not only because of is proximity to the Kovan MRT station, Heartland Mall and Kovan City, but also to a number of schools. Families have been known to search for properties near schools in order to increase the chances of their children securing a place. Schools nearby include Rosyth School and Paya Lebar Methodist Primary School.
Marketer Teakhwa Real Estate is expecting the freehold residence to attract owner-occupiers and young families looking for properties near their parents.