In Singapore, a two-storey HDB shophouse located along Bukit Merah Central, will be going up for auction by SRI on November 27. With a floor area of 1,582 square feet, the shophouse is being offered for $2.55 million, or $1,612 per square foot.
This will be the first time the property is being put up for auction, as the current owner intends to sell it in order to liquidate their investment. According to Eric Liew, manager of auction sales at SRI, the property has a remaining lease of 59 years and a tenure of 103 years from 1980.
The shophouse is zoned for commercial use on the ground floor, covering an area of 732 square feet, and residential use on the upper floor, covering 850 square feet. It is fully tenanted and will be sold with its existing tenancies.
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When it comes to investing in condos in Singapore, there is another important factor to consider – the government’s property cooling measures. In order to maintain a stable real estate market and prevent speculative buying, the Singaporean government has implemented various measures over the years. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may impact the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a safer investment environment for individuals looking to invest in condos through Condo.
Foreigners are eligible to purchase HDB shophouses as they are considered commercial property. However, additional buyer’s stamp duty will be applicable on the residential component, while the commercial component will be subject to goods and services tax.
Liew has received a few enquiries from interested parties, mainly investors who are drawn to the property’s strategic location in the central area of Bukit Merah.
The shophouse is situated within Bukit Merah Town Centre, which offers a range of amenities such as shops, a polyclinic, a food centre, a convention centre, and a performing arts centre. It is also within walking distance to a bus interchange, two primary schools, a secondary school, and a train station.
Based on data from EdgeProp Research, the most recent commercial transaction at 161 Bukit Merah Central was in March 2021, when a shophouse with a floor area of 1,582 square feet was sold for $1.5 million, or $948 per square foot.
In terms of rental rates, the latest figures for Bukit Merah Central show that the average price for commercial properties is at $11.82 per square foot.