Two shop-houses that are adjoined and has seen a change of hands for $18.2 million. The shop-houses are under 20 metres from Telok Ayer’s MRT Station, and are both 3 storeys in height with attics at each for Sturdee Road Condo. On of the them sits on a 199 year leasehold site, while the other sits on a site with a 999 year leasehold.
The 18.2 million equates to close to $2,600 per square foot on an area that is built up and close to 7,000 square feet of space. On Telok Ayer Street this is said to be one of the highest built up spaces.
It is understood that both Sturdee Road SL Capital Condo shop-houses were sold by owners of a consultancy and corporate services group. Just last year, the purchaser is Ricardo Portabella Peralta, a Spanish tycoon who acquired 2 condominiums that were adjoining located at 7 Palms Sentosa Cove for the price of $28.55 million.
Sustained Land Condo Shophouse
One of the Sturdee Road Condo Boon Keng shop-houses is currently vacant but was lived in by the seller. The other is leased to a shipping company on the top levels and a ground floor Japanese restaurant.
Over the past few months there have been other shop-house transactions concluded. One example is Little India’s Madras Hotel in Sturdee Road Condo Farrer Road, which is situated along Madras Street and which sold for close to $12.5 million. The site that the property sits upon has a remaining lease term of around 78 years. Other shop-house transactions were a Pagoda Street freehold property that sold for $9.5 million and a freehold shop-house situated in Stanley Street that fetched $8.8 million.
In Farrer Road Condo Sturdee Road Joo Chiat’s secondary settlement preservation sector there were 6 strata units sold to Silk Road Property Partners for $7.9 million, which equates to $832 psf of strata area. The units were located on the upper and ground levels in the front area of 3 shop-houses that are adjoining.
Looking at a Bendemeer Road Condo SL Capital shop-house transaction analysis, 11 caveats for properties had been recorded for October for the total of $54.85 million. During 2015’s 3rd Quarter a total of 157.12 million for 24 caveats was registered.
Sturdee Road SL Capital Condo
We have seen the number of transactions for shop-houses hovering close to 20 + transactions in a majority of quarters with a total that is just under $200 million, ever since the TDSR was introduced during late June in 2013.
According to one SL Capital Condo consultant, prices of shop-houses seem to be holding steady regardless of stock being limited, demand being quite strong and most end users focused on a mid to long term horizon.
It was noted by market watchers that, even though shop-house transaction volumes have eased up after the TDSR implementation, conservative shop-houses seem to be holding their own in prim areas of the Central Business District. They key to this is having a location that is good and that sees a lot of pedestrian traffic, something that attracts ground level higher paying tenants that are in the F&B business.
Shophouse sale near Bendemeer Road Condo SL Capital
Furthermore, foreigners are allowed to purchase shop-houses that are situated on sites that are purely zoned for commercial use, a fact that adds to their appeal for Sturdee Road Condo.
There are a large number of ultra high net worth investors, which includes foreigners, who are examining Singapore’s class of heritage property, having their sights on capital appreciation given the scarce number of shop-houses on the market.
Even though its been traditional that investors focus on Central Business District shop-houses, we are seeing properties in the East and along the fringe of the Central Business District moving into the fore. A major change has been noticed in the profile for tenants in these shop-houses, with F7B tenants having a strong demand, alongside those tenants who are eager to look into spaces that are not traditional and are in Sturdee Road Condo Boon Keng office layouts that are not conventional. In particular are shop-houses that are adjoining, which are highly sought due to their usage flexibility and economies of scale.
Over the coming 6 month period we could see a temperate price appreciation of between 5% to 10% for shop-houses, given the absence of speculators. The lower transaction number mirrors owners who are keeping hold of their assets while anticipating a future with more upside.