A three-storey conservation shophouse located at Chinatown is up for sale via expression of interest with an S$8.5 million indicative price.
This works out to S$2,660 per square foot (sq ft) with an estimated gross floor area of 3,196 sq ft, sole marketing agent CBRE said on Monday.
Located at 18 Sago Street with a 5.4 metre frontage, the property sits on a land area of around 1,115 sq ft with a 99-year leasehold tenure from 1991. It is zoned for “commercial” use under the Urban Redevelopment Authority’s (URA) 2014 Master Plan.
As a commercial property, the sale is open to both locals and foreigners, with no additional buyer’s stamp duty or seller’s stamp duty imposed on the purchase of the property.
Angela Lim, CBRE senior manager, capital markets, said the offer is an attractive one as the price is at “a palatable quantum”. Based on past transactions, capital appreciation for conservation shophouses is about 4 to 8 per cent per annum.
“The successful buyer will enjoy immediate rental income as the shophouse is fully tenanted with leases expiring between 2020 and 2022,” Ms Lim said.
Value-add to the property can also be explored via addition and alteration refurbishment works or by converting the second and third floor into a capsule hostel, subject to the authorities’ approval. The ground-floor space also has approval for food and beverage use.
Commercial conservation shophouses, particularly those in prime central locations such as Chinatown, have been constantly sought after by investors, since only about 6,700 conservation shophouses exist in Singapore with ownership usually held tightly and based on URA Realis, Ms Lim said.
Investors of such shophouses include private real estate funds, family offices and high net worth individuals.
She added that shophouses along Sago Street rarely change hands, seeing that there has been no shophouse transaction along Sago Street in the past six years. The most recent shophouse transaction in the vicinity was in May 2019, where a three-storey freehold shophouse along Temple Street was sold for S$8.9 million.
The expression of interest exercise will close on Oct 2 at 3pm.