The Holland Village shophouse comprises 2 strata units with a total floor area of 1,841 sq ft
Knight Frank announced on Jan 5 that it has been appointed as the exclusive marketing agent for the sale of a shophouse at Lorong Mambong via Expression of Interest (EOI), for S$13.5 million.
The freehold, 2-storey shophouse comprises 2 strata units with a total floor area of 1,841 sq ft, in addition to an outdoor refreshment area of 420 sq ft. Under the Master Plan 2019, the Holland Village shophouse is zoned ‘Commercial’ with the ground floor used as a café and the upper floor as a beauty salon. Under the current zoning, foreigners are eligible to purchase the Holland Village shophouse with no Additional Buyer’s Stamp Duty and Seller’s Stamp Duty payable.
Lorong Mambong in which the Holland Village shophouse is located in, is the commercial heart of the Holland Village enclave, famous for its row of charming shophouses housing popular restaurants, cafes, wine bars and pubs.
Other prominent buildings in the vicinity include Holland Village Market & Food Centre, the refurbished Holland Piazza Shopping Mall, Holland Road Shopping Centre and the upcoming mixed-use development, One Holland Village. The area is also highly accessible, with Holland Village MRT station just a brisk walk away.
“With the opening of Phase 3, the dining crowd has quickly returned to Lorong Mambong and the surrounding streets to enjoy the chill vibes unique to the area and its many F&B offerings, which offer alfresco dining in a comfortable setting. With URA’s plan to inject a fresh wave of life into Holland Village with a new, mixed-use, pedestrian-oriented development, the buzz and vibrancy synonymous with the area will continue to thrive,” observes Mary Sai, Executive Director of Capital Markets for Land & Building, Collective & Strata Sales, Knight Frank Singapore.
The demand for shophouses in Q4 2020 (up till 23 December 2020) has remained unabated (totalling an estimated S$387 million for 45 deals), even as buyers continue to find value and potential appreciation in acquiring such assets, especially in good locations. Available shophouses for sale in Holland Village are uncommon, as most owners tend to hold their properties for long term investment. The last sale transacted in the area was a 2-storey shophouse at 257 Holland Avenue in March, last year. It was sold for S$15.2 million and has a land area of 1,507 sq ft.
The EOI for the Holland Village shophouse will close on 4 February 2021, at 3pm.
Mr Paul Ho, chief mortgage officer at iCompareLoan, commenting on the sale of the Holland Village shophouse said, “this will be appealing to investors because it is an alternative to putting money down on residential properties.”
He added, “As far as commercial real estate goes, shophouses are good investments especially in an area like Holland Village.”
Potential buyers have to ensure that they have the up to date on the current valuation of the property as it will determine the maximum loan and the possibility of having to top up the equity to qualify for financing a commercial property. Buyers should also use calculators to see if the mortgage payments on the loan is affordable given their income.
A few factors should inform your decision to buy a commercial property:
Use calculators to see if the mortgage payments on the new loan is affordable given your current salary. Ccommercial property loan calculators help you know the mortgage payments from the different financial providers.
- Change in credit situation
Since the last time you took the loan, has your salary/company’s results/financial position improved or deteriorated? Have you been late in payment of debt? Did you sign on to be a guarantor or taken up more debt? Do you have a tenant? What is the remaining lease? All these factors will be considered when you apply for refinancing as your credit profile will be reassessed.
Financing commercial property may lead to costs such as those relating to valuation, legal, etc. Look out for promotions where banks/financing companies waive charges.
- Clawback and lock-in period
Review your letter of offer and read up on the clawback and lock-in period to ensure that financing makes sense for you. If the switch is onerous and costly, it may not be worthwhile.
- Shop around
Once you have done your homework on the above, you can shop around for the financial institution that offers the loan package that suits you and look out for promotions. Make sure you view the loan package from the various financial providers, but do note that there are different rates for properties bought under personal name or company name.
You will likely be asked to provide the following in the application if you apply to finance commercial property. Have these ready on hand if your property is bought under a company name.
- Copy of NRIC/Passport
- Income statement and/or audited financials (corporation)
- Bank statements
- Loan account statement from existing financing company showing repayment history
- Latest CPT withdrawal statement for property to be refinanced (if there is utilization of CPF)
- Title Deed
A good Mortgage broker can assist you to refinance commercial property safely, further more, it’s free of charge as they receive a fee from the bank when a loan is completed. Think of them (mortgage brokers) as Supermarket assistants who can guide you on a number of brands of noodles. Talk to them about your taste, whether you want it a bit salty or sweeter, spicy or not, etc. They will find you the bank loan on the shelf.