A Freehold Three-Storey Conservation Shophouse At East Coast Road for Sale – Ground and Third Floors of the Freehold Three-Storey Conservation Shophouse Currently Leased to Boon Tong Kee Restaurant
CBRE announced on October 7 that it has been appointed as the sole marketing agent for a freehold three-storey conservation shophouse at 199 East Coast Road. The sale is via an Expression of Interest exercise and interested parties are invited to submit their offers by 12 November 2020 at 3pm.
Strategically located in the heart of the bustling East Coast/Joo Chiat enclave, the three-storey conservation shophouse enjoys high visibility along the main East Coast Road. The three-storey conservation shophouse sits on a freehold site of about 1,795 square feet and has a total existing built-up area of about 4,010 square feet.
Under the 2019 Draft Master Plan, the three-storey conservation shophouse is zoned “Commercial” with a plot ratio of 3.0 within the Joo Chiat Secondary Settlement Conservation Area. The maximum allowable gross floor area is approximately 5,385 square feet, subject to the relevant authorities’ approval.
Indicative price for the three-storey conservation shophouse is S$9.5 million, which translates to about S$2,369 per square foot on the existing built-up area of 4,010 square feet.
The Katong/East Coast Road area is predominately an affluent residential neighborhood that is characterized by a mix of colorful Peranakan shophouses, high-rise condominiums and landed housing enclaves. Due to the large residential catchment, the area has attracted multiple popular restaurants, bars and hipster cafes. The neighborhood is currently undergoing further rejuvenation with the upcoming Marine Parade MRT on the Thomson-East Coast Line by 2023 and the Asset Enhancement Initiatives being conducted at i12 Katong which is scheduled to be completed by 2021.
Clemence Lee, Senior Director of Capital Markets at CBRE says, “We have recently noticed an increase in interest for shophouses in the East Coast area. This could be attributed to the fact that F&B and retail businesses in the vicinity are doing well, with more people frequenting the neighborhood more often due to the work-from-home regulations. The area is expected to become even more dynamic upon the completion of rejuvenation activities.”
He continues, “Just last month, we understand that 139 East Coast Road, which previously housed Glory Catering, was transacted at S$6.6 million, while another row of three shophouses located at 101-105 East Coast Road changed hands at S$14 million. Therefore, at a palatable investment quantum of S$9.5 million for the subject property, we expect strong interest from astute investors.”
“The shophouse is currently fully tenanted, with the ground and third floors leased to the popular and long-standing Boon Tong Kee restaurant, who has been operating at the premises for more than 15 years. This will provide the incoming buyer with immediate rental income. Alternatively, once the existing leases expire, the incoming buyer can also consider maximizing the plot ratio by building a rear extension to increase the floor area by an additional 34%, subject to relevant authorities’ approval,” adds Mr Lee.
There will be no additional buyer’s stamp duty or seller’s stamp duty imposed on local or foreign buyers of the three-storey conservation shophouse.
The three-storey conservation shophouse enjoys a readily large residential catchment from Marine Parade housing estate. Nearby commercial developments include I12 Katong, Katong Point and Parkway Parade. Accessibility to the three-storey conservation shophouse is easily available via East Coast Parkway and major trunk roads such as Marine Parade Road, Still Road, Joo Chiat Road and East Coast Road, as well as the upcoming Marine Parade MRT station.
Mr Paul, chief mortgage officer at iCompareLoan, said that “although the Covid-19 circuit breaker makes real estate sales difficult at the moment, the three-storey conservation shophouse at East Coast Road is 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 where the 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.”
Joo Chiat Road is an arterial road and a residential conservation area in the eastern part of Singapore, and is located between Geylang Serai and Marine Parade Road. It is mainly bounded by conserved shophouses that are colourfully painted on both sides of the road. The stretch of road is either designated as a single directional or a single lane road in one direction.
There are famous eateries which contribute to Joo Chiat’s popularity as a dining spot. There are various Vietnamese, Chinese and western restaurants, a multicultural food enclave, not just a Peranakan enclave. The restaurants and various eateries along the street are of varied cuisines but perhaps one particular cuisine stood out – Vietnamese. Joo Chiat has been known for being a “Little Vietnam”. There is cluster of Vietnamese restaurants, as well as Vietnamese grocery store, which were opened to serve the Vietnamese community in Singapore.