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Refurbished conservation shophouses at Craig Road for sale at $31 million

by • November 11, 2020 • ShophouseComments (0)103

The refurbished conservation shophouses at 38, 39 Craig Road comes with a private courtyard and terrace garden

Savills Singapore, announced on November 10 that as the exclusive marketing agent,  it is proud to offer for sale 38, 39 Craig Road – a pair of tastefully refurbished shophouses with a private courtyard and terrace garden. 38, 39 Craig Road comprises of a pair of three-storey refurbished conservation shophouses with attic and features a rare terrace garden and private courtyard.

refurbished conservation shophouses

image: Savills Singapore

The refurbished conservation shophouses sit on a combined land of approximately 3,726 sq ft, with an estimated total built up area of approximately 9,817 sq ft.

Having undergone a major refurbishment in 2017, the interior has been beautifully designed and offers a modern refuge that contrasts and pairs well with the building’s ornamental exterior. Using quality marble and oak wood finishing, the strong design element exudes a contemporary and sleek elegance.

Zoned “Commercial” within the Chinatown – Tanjong Pagar historic conservation area, 38, 39 Craig Road is fully tenanted and boast of strong tenant profiles with a Michelin star restaurant on the ground floor and reputed MNC tenants on the upper floors.

Conveniently situated between the Duxton Hill and Keong Saik F&B enclave, the refurbished conservation shophouses enjoy excellent accessibility with Tanjong Pagar MRT, Outram Park Interchange and the upcoming Maxwell MRT station within a few minutes’ walk. Popular establishments in the immediate vicinity include Shake Shack just next door, The Working Capitol, and the upcoming mixed-used development on the former Chinatown Plaza site.

Ms. Yap Hui Yee, Director, Investment Sales & Capital Markets at Savills Singapore, said: “This is a rare opportunity for buyers to purchase an exquisite pair of heritage shophouses that have been thoughtfully designed and equipped with excellent specifications. Primely located near the junction of Neil Road and Craig Road, the immediate vicinity is undergoing rejuvenation with the opening of Shake Shack next door and the upcoming mixed-development consisting of retail and hotel on the former Chinatown Plaza site”

The guide price for 38, 39 Craig Road is $31 million, which translates to approximately $3,157 per square foot on the floor area. Foreigners and companies are eligible to purchase the refurbished conservation shophouses and no Additional Buyer Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) will be imposed.

The sale of the refurbished conservation shophouses will be conducted through an Expression of Interest exercise which closes on Tuesday, 8 December 2020, at 3pm.

Craig Road is a road located in Tanjong Pagar within the Outram Planning Area in Singapore. The road links Neil Road and Tanjong Pagar Road, and is also accessible via Duxton Road. Craig Road was named after Captain James Craig, a member of the Merchant Service Guild and an officer of the Freemason’s Zetland Lodge, a club. The road was the living quarters of Chinatown’s poor in the late 19th and early 20th centuries.

The road is known as gu chia chui kia in Hokkien, which means “side of Kreta Ayer”. To avoid confusion with similar sounding roads located around Kreta Ayer, Craig Road was also called ka-lek lut, which has only phonetic significance and was used to mean Craig Road and the road where the Peranakans lived. Cantonese: san yiong tai uk pin, meaning “beside San Yiong’s big house”. San Yiong was a Peranakan who owned a big house on this road.

Craig Road begins from the junction of Neil Road and Keong Saik Road and ends at Tanjong Pagar Road. The road was where the poor people in Chinatown lived in the late 19th and early 20th centuries.

Mr Paul, chief mortgage officer at iCompareLoan, said that “although the Covid-19 circuit breaker makes real estate sales difficult at the moment, the refurbished conservation shophouses are in a good location and is hard to come by.” Mr Ho believes smart investors who are flush with cash, will resort to value hunting instead of choosing residential properties which are still selling at unbelievable prices.

Mr Ho added that given the land scarcity in Singapore, demand for commercial properties in Singapore will continue to rise over the long term. He pointed out that Singapore continues to be a global financial centre and a trade hub with high livability scores – all of which attracts high net worth investors to the Republic. All these factors will inevitably fuel demand for commercial property in Singapore he added.

Mr Ho believes that value buys in the property market right now are are landed inter-terrace houses which’s per square feet price on the built-up area is usually less than $1,000 and commercial properties.  But Mr Ho cautioned that the bigger challenge for buyers of commercial property is securing the best commercial loans.

“With the right loan, the buyer can save thousands, if not tens of thousands of dollars,” he said. Adding, “which is why they would have to work with established mortgage brokers who can provide them free service.”

Loans

Borrowers for commercial properties are allowed to take a loan-to-value ratio (LTV) of up to 80%, even with outstanding residential mortgages. The maximum loan tenor typically stands at 30 years. However, loans for commercial property tend to command a higher interest rate relative to residential property loans. Like the latter, these loans come in

  • Fixed Rate Package
  • Variable (Floating) Rate Package

The requirements for a commercial loan, however, are more stringent. For example, the LTV ratio is contingent on whether the property is for owner-occupation or investment, with the latter subjected to stricter criteria by some banks. The next section explains the approval conditions in greater detail.

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