According to today’s BT report a row of HDB shopspace near Toa Payoh Hub is selling for over $11K psf for a remaining lease of 50+ years left.
A row of prime heartland retail shops in Toa Payoh Central is up for sale by tender at an indicative price of $65 million, which works out to an average of about $11,245 per sq ft (psf) for the 5,780 sq ft property.
Located in Block 190 of Toa Payoh Central, the property is a strata-titled shop subdivided for lease to four tenants, including Watsons. It has a remaining lease of 57 years.
The average psf pricing seems high for a Housing Board retail shop, although there are not many records of transactions of such retail units for comparison.
For retail spaces, human traffic is most important. The space is part of the “most prime row of shops” in Toa Payoh Central. Anyone going to the HDB Hub will pass through that area, and the atrium in front of the shops, used for roadshows or events, also pulls in crowds.
Current listings on CommercialGuru show that monthly rents for units along this stretch can hit $50 psf; rents in this stretch can be 20 to 30 per cent higher than shops elsewhere in Toa Payoh Central.
The HDB Hub is the only retail centre serving Toa Payoh residents, Savills noted. The hub, integrated with Toa Payoh MRT station and the bus interchange, is also near exit points of the Pan Island Expressway (PIE).
Toa Payoh, HDB’s second satellite town, is home to more than 109K residents.
Savills, the sole marketing agent, announced the sale yesterday but did not disclose the client. The tender closes at 3pm on Aug 12.