Shophouses in Neil Road, Jasmine Road up for sale

Two conservation shophouses in Neil Road and three other shophouses with adjoining land in Jasmine Road are separately up for sale in the market, Colliers International said in a press statement on Wednesday.

The pair of of adjoining two-storey conservation shophouses with attic at 65/67 Neil Road has an indicative price of S$15.57 million. This translates to about S$2,800 per square foot (psf), based on the total gross floor area (GFA) of 5,563.7 sq ft.

Located in the Tanjong Pagar area, the shophouses sit on a site that spans 2,703.6 sq ft and they have a 99-year land tenure with effect from July 4, 1989. They are also situated near Tanjong Pagar and Outram Park MRT stations, and within the Chinatown historic district.

Steven Tan, senior director of capital markets at Colliers International, said the firm expects “healthy interest” for these shophouses from both local and foreign investors. “Singapore real estate remains appealing and continues to get investors’ vote of confidence amid uncertain times. This is due in part to Singapore’s strong fundamentals and the long-term growth potential of its property market,” Mr Tan noted.

He added that the shophouses at Neil Road enjoy “strong tenant covenant and has the potential to increase GFA via addition and alteration works, subject to relevant approvals”. There is also space at the rear of the property for the loading and unloading of supplies, as well as the setting up of an alfresco food and beverage area, subject to approval.

“We believe there is an upside for rental revision, particularly in a robust leasing market with limited supply,” Mr Tan said.

The ground floor of both shophouses and the second floor of 67 Neil Road are tenanted to an entertainment establishment which has been leasing the space for many years.

Meanwhile, the second floor of 65 Neil Road, which is vacant, will allow the buyer to revitalise the space. Subject to approval by the Urban Redevelopment Authority (URA), the second floor of the shophouse may be used for various purposes including a restaurant, clinic, gym, karaoke, student hostel and residential use.

Under the URA’s Master Plan 2019, the site is zoned commercial. Therefore, there is no additional buyer’s stamp duty and seller’s stamp duty for the site. The expression of interest (EOI) exercise for 65/67 Neil Road will close at 3pm on March 12.

Separately, the three freehold shophouses at 7, 9 and 11 Jasmine Road – comprising a mix of two and three-storey properties – and an adjoining vacant land belonging to the owner of 11 Jasmine Road, have a guide price of S$22.88 million.

This works out to about S$1,185 psf, inclusive of the estimated development charge based on the proposed GFA of 21,363 sq ft upon redevelopment, Colliers said. The shophouses may be purchased separately or collectively.

The three shophouses and the adjacent land behind these shophouses have a combined site area of 7,121 sq ft. Under the Master Plan 2019, the site is zoned residential with first storey commercial and has a gross plot ratio of 3.0.

Subject to approvals, it could potentially be redeveloped into a building of up to four storeys, with commercial space on the first floor and about 16 residential units, based on an average apartment size of 861 sq ft.

Added Mr Tan: “We have been approached by several co-living operators who are looking for suitable properties to operate from, and we believe this site would be ideal for that purpose. The buyer can seek permission from the authorities for change of use to serviced apartments to tap the growing co-living sector.”

The site which is surrounded by a landed housing estate, is near the upcoming Upper Thomson MRT station on the Thomson-East Coast Line, and Marymount MRT station on the Circle Line.

Amenities in the vicinity include Thomson Plaza, Junction 8 shopping mall, Whitley Secondary School, Catholic High School and MacRitchie Reservoir Park.

The EOI exercise for 7, 9 and 11 Jasmine Road and the adjoining land will close at 3pm on March 19.

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