The 5 freehold conservation shophouses are occupied as F&B outlets on the ground floor and offices or additional dining areas on the upper floors
Knight Frank Singapore on Sep 18 offered an island block of 5 adjoining, freehold conservation shophouses in Kampong Glam for sale via public tender.
The 5 freehold conservation shophouses are located prominently at the prime corner of Baghdad Street and Muscat Street, right at the heart of excellent eateries and trendy retail shops. With the support of the Singapore Tourism Board, the back alley of Muscat Street has a charming outdoor art gallery with delicate art pieces adorning the walls. The location is popular among both tourists and locals for their free guided tours of the neighbourhood.
No. 17, 19, 21, 23 and 25 Baghdad Street have 5 individual titles with a total land area of 4,892 sq ft and gross floor area of approximately 8,013 sq ft. The 5 freehold conservation shophouses are zoned Commercial under the Master Plan 2014.
The island block of 5 adjoining shophouses are currently fully tenanted. The 5 freehold conservation shophouses are occupied as F&B outlets on the ground floor and offices or additional dining areas on the upper floors.
Ms Mary Sai, Executive Director of Investment and Capital Markets, Knight Frank Singapore, says, “It is a rare opportunity to acquire a block of 5 adjoining shophouses in Kampong Glam as more often than not, transactions in the vicinity are of a smaller scale, such as a single shophouse unit with a land area of about 700 sq ft to 1,500 sq ft at say, Bali Lane or Bussorah Street.
“In fact, a shophouse at Bussorah Street with a balance lease of 83 years and land size of 1,741 sq ft was sold for S$5 million in July last year. With the guide price for the 5 shophouses at S$23.8 million, the potential for capital appreciation is indeed promising.”
As the shophouses are zoned Commercial, there will be no Additional Buyer’s Stamp Duty and Seller’s Stamp Duty payable. Foreigners and companies are also eligible to purchase the properties.
Ms Sai further shares, “Kampong Glam is an area with rich architectural heritage and holds an eclectic blend of Singapore’s history and culture. The shophouses are situated within the bustling part of this conservation area and are surrounded by F&B establishments, souvenir shops and boutique hotels.
“The combined large floor plate of the 5 adjoining shophouses allows for flexibility in space reconfiguration for the new owner, to meet needs be it for owner-occupation or investment. As such, the owners are expecting a healthy interest from both investors and corporate entities in acquiring the freehold commercial asset.”
The sale of the 5 freehold conservation shophouses is subject to existing tenancies. The public tender will close on Thursday, 24 October 2019, at 3pm.
Mr Paul Ho, chief mortgage officer at iCompareLoan, said, “the location of the 5 freehold conservation shophouses makes it an attractive buy. It is a stone’s throw away from cultural landmarks such as Sultan Mosque and the Istana Kampong Glam, the former Sultan’s Palace. Other nearby landmarks include DUO, City Gate, The Concourse and the upcoming Guoco Midtown.”
Mr Ho added, “If there is naming rights for the property it is a bonus as it would draw strong interest from owner-occupiers looking to locate their business in a boutique building.”
The property is located within the heart of Kampong Glam historic district – once Singapore’s traditional Malay enclave that has been transformed into today’s bustling hub offering a diverse mix of cultural, entertainment, F&B and lifestyle attractions frequented by both locals and tourists. The 5 freehold conservation shophouses is expected to garner keen interest from savvy investors with a medium-to-long-term investment horizon who are seeking to benefit from future rental upside and capital appreciation, in addition to enjoying immediate rental income.
The biggest gainers following the 2018 property cooling measures is likely be owners of strata portfolio of offices and shophouses approved for commercial use. The property cooling measures affected almost all categories of buyers and is predicted to achieve its intended objectives of cooling demand and moderating price growth.
One report said investors looking for alternatives to park their money in the wake of property cooling measures, would divert their attention to the strata office and shophouse markets as they are not subjected to this round of purchase or sales restrictions/encumbrances.
Mr Ho said, “shophouses are perceived as attractive investments because they can hold their values because of their central locations and the freehold/999-year-leasehold of many of these properties. Shophouses are also valued because they give prominent presence to a business entity for them to be visible in a highly competitive environment.”
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