A pair of conservation shophouses along Tras Street is up for sale with a guide price of S$12 million for the larger property and S$10.8 million for the smaller unit. This works out to about S$2,800 per square foot (sq ft) for each shophouse, sole marketing agent CBRE announced on Tuesday.
The larger shophouse has a land area of about 1,494 square feet (sq ft) and total floor area of about 4,257 sq ft, while the smaller unit has a land area of about 1,298 sq ft and total floor area of about 3,852 sq ft.
The three-storey shophouses with attic have a 99-year lease and are zoned for commercial use under the Urban Redevelopment Authority’s 2019 Master Plan.
They are a short walk from Tanjong Pagar MRT Station, and are fully leased to food and beverage operators on the ground floor and soho users on the upper floors, said CBRE.
Recent transactions of 99-year leasehold shophouses include 34, 36 and 38 Tanjong Pagar Road, which were sold collectively in December 2019 at about S$16.4 million or about S$3,000 per sq ft; and 76 Pagoda Street, which sold in July 2019 at S$13.3 million or S$3,500 per sq ft, added CBRE.
New commercial developments in the area include Guoco Tower and Frasers Tower, while ASB Tower is slated for completion this year.
Clemence Lee, senior director of capital markets at CBRE, said that investors’ interest has started to shift to “well-located 99-year leasehold shophouses which are believed to offer better value and higher yields”, on the back of rising prices of 999-year or freehold central business district shophouses.
The two shophouses can be bought individually or collectively, and are on sale via an expression of interest exercise which closes on Feb 12, 2020 at 3pm.