International property consultant, Colliers International is putting up – for sale by auction – five adjoining two-storey refurbished shophouses located at 9, 11, 13, 15 and 17 Teck Chye Terrace. To be sold as an entirety, the shophouses have a freehold tenure and sit on a land area of approximately 7,861 sq ft. The total floor area is approximately 12,163 sq ft. Each shophouse has a side staircase for access to the upper storey.
Under the 2014 Master Plan, the subject property is zoned for “Residential” use with a plot ratio of 3. The first storey of all five units have obtained permanent approval for “Shop” use.
Ms Grace Ng, Deputy Managing Director of Colliers International, says, “It is not often that a row of adjoining shophouse units is made available for sale as an entirety. We are optimistic that the subject property will greatly appeal to investors, as the indicative price is relatively reasonable at S$13 million, which works out to be some S$1,069 per sq ft. Typically, the average price of a similar suburban freehold shophouse ranges from S$1,300 per sq ft to S$1,500 per sq ft.”
Ms Ng continues, “Additionally, such freehold shophouse units – particularly those with prominent road frontages and have car park facilities located right in front of the premises – are easily rentable and typically enjoy long-term capital appreciation, adding to the list of pull factors for serious investors.
Recent comparable transactions included a shophouse located at Serangoon Garden Way that was sold at S$2,478 per sq ft in March 2014 and another at Serangoon Road that was sold for S$1,556 per sq ft in February 2014.
According to data captured by URA Realis, the median price for freehold sub-urban shophouse units has appreciated by approximately 65 per cent since 2012. It is also likely that there will be no freehold shophouse unit expected to be built in the market in the near future.”
The shophouse units are all currently tenanted at a total rent of approximately S$36,850 per month, with most of the tenancies expiring in 2016.
Ms Ng adds, “Subject to the relevant authorities’ approval, the successful buyer can consider A&A/refurbishment works to increase the floor area or re-configure the floor layout for maximised use, potentially increasing the yields.”
Located at the junction of Upper Serangoon Road and Boundary Road, the subject property is located along a street comprising a row of 15 shophouses, collectively known as the “Teck Chye food street”.
The immediate locality comprises a mixture of landed properties, condominiums, commercial developments and HDB estates. Access to other parts of the island is via Central Expressway and the nearby Serangoon MRT station. Prominent developments in the vicinity include Nex Shopping Mall, Upper Serangoon Shopping Centre, Space @ Kovan, Paya Lebar Methodist Church and Serangoon Stadium, among others.
The auction will be held at Amara Hotel on 22 January 2015, at 2.30 pm.
Two freehold properties will be up for auction as a result of an estate sale, said property firm and consultancy Colliers International yesterday.
The properties up for sale, resulting from the owner’s death, are a two-storey conservation shophouse in Beach Road and a terraced house in Devonshire Road.
This comes amid a rebound in the number of mortgagees who have put properties up for auction, as more borrowers default on loans. The home owners find it harder to sell their properties on their own.
But, as a whole, the auction market has not fared as well, thanks to government measures such as the additional buyer’s stamp duty.
So far, $57.6 million worth of properties has gone under the hammer in the first three quarters, well down from the $87.7 million that changed hands over the same period last year, according to earlier reports.
The shophouse, which has tenants, has an indicative price of $5.1 million and a land area of 1,381 sq ft.
Values of shophouses in the area have registered healthy growth, according to data from the Urban Redevelopment Authority. The average transacted price of shophouses in the Kampong Glam district was $4,700 per sq ft (psf) this year, up 20 per cent from a year ago.
The two-storey terraced house to be auctioned also has tenants, and has an indicative price of $4.4 million.
The property’s land area is 1,405 sq ft, with a plot ratio of 2.8, said Colliers.
“The property has a unique facade, which will appeal to a niche group of buyers who appreciate properties that are architecturally distinct,” said Ms Grace Ng, deputy managing director of Colliers.
Both properties will be auctioned on Oct 29, at Amara Hotel.