Located within the Chinatown-Tanjong Pagar Conservation Area, the shophouse – which comes with an attic – has a land area of 1,413 sq ft and a 99-year leasehold tenure that started from 4 July 1989.

A conserved two-storey shophouse at 65 Neil Road is set to be put up for sale via auction by the owner for $8 million, revealed Colliers International.

This works out to $2,800 per sq ft (psf) based on a gross floor area (GFA) of 2,833.52 sq ft. Additional buyer’s stamp duty and seller’s stamp duty will not be payable due to the property’s commercial use zoning.

Located within the Chinatown-Tanjong Pagar Conservation Area, the shophouse – which comes with an attic – has a land area of 1,413 sq ft and a 99-year leasehold tenure that started from 4 July 1989.

Colliers noted that the owner has engaged the services of an architect to review potential alteration and addition works that could add another 602.5 sq ft to the GFA, bringing the overall price down to less than $2,500 psf.

Currently, the ground floor of the property is tenanted to an entertainment establishment which has been leasing the space for the last 15 years.

The lease for the second floor to another tenant will expire at end-2019. Subject to Urban Redevelopment Authority approval, the said floor may be used for clinic, restaurant, gym/fitness centre, commercial school, karaoke, night club, student hostel, as well as residential use, potentially co-living concepts.

“Shophouses have always been a sought-after class of real estate among investors owing to their prime locations, heritage charm and scarcity. Those in prime areas are considered a good investment option owing to their superior location, healthy pedestrian traffic, and the vibrant activities in the vicinity,” said Colliers International director of capital markets and investment service Steven Tan.

“Generally, shophouses also see good leasing demand and enjoy relatively good return. We have definitely seen heightened interest for such properties since new cooling measures were introduced in July 2018.”

The auction for the shophouse will be held on 30 September at Amara Singapore, Level 3, Connection Room.

Source: 27 Aug 2019, CommercialGuru