Conservation or heritage shophouses are considered rare assets as they were built between the early-1800s and mid-1900s. As heritage buildings, they continue to be an important part of Singapore’s cityscape and serve as a link to the nation’s past.
Owing to their vintage charm and limited supply, commercial shophouses offer intrinsic value and are also not subject to the recent tax hikes in the residential sector. This makes shophouses an attractive investment real estate asset class.
Shophouse transactions in Singapore with a value of S$10 million and above hit an all-time high in 2018 at S$834 million.
Currently, there are about six shophouses up for tender. A prime four-storey conservation shophouse at 21 New Bridge Road sits on a site area of 1,443 sq ft and has been launched for sale at S$19.5 million with only eight years remaining on its 99-year tenure. The seller will bear the additional cost to top up the land tenure to a fresh 99-year lease, and has also committed to undertake addition and alteration (A&A) works to build the rear extension from the current four storeys to up to six storeys. The valuation price of S$19.5 million translates to around S$3,200 per square foot (psf) based on the proposed total gross floor area (GFA) of 6,062 square feet (sq ft) after the refurbishment and lease top-up.
The 2.5-storey freehold shophouse at 151 Telok Ayer Street has a land area of 1,574 square feet (sq ft), and built-up area of 3,198 sq ft. It has a guide price of S$12 million.
Another freehold shophouse at 14 Stanley Street, also with a guide price of S$12 million, is a 2.5-storey unit. It is currently occupied by a restaurant on the ground floor and offices on the upper floor. The shophouse has a land area of 1,491 sq ft and built-up area of 3,265 sq ft.
The two-storey corner unit at 8 Smith Street - has a land area of 2,096 sq ft and built-up area of 3,559 sq ft. It has a guide price of S$7 million and is currently tenanted to an F&B establishment on the ground floor.
The Serangoon Gardens shophouse is a two-storey corner unit with a land area of 1,618 sq ft and a built-up area of about 3,000 sq ft. Its S$8.5 million guide price translates to about S$2,833 psf over the floor area. The property has a 999-year leasehold tenure and is currently fully tenanted.
The 999-year leasehold Kampong Glam property is located at 18 Bali Lane. Currently tenanted, the two-storey conservation shophouse with attic, has a total built-up area of about 1,919 square feet (sq ft). It is put up for sale via expression of interest at a guide price of S$6.9 million, which translates to about S$3,600 per sq ft (psf) of floor area.
For comparison, earlier in September, there were five adjoining Kampong Glam conservation shophouses at Baghdad Street that were put up for sale via public tender at a guide price of S$23.8 million.
All sites are situated within a conservation area and zoned for commercial use. Foreigners and companies are eligible to make bids and no additional buyer's stamp duty or seller's stamp duty payment is needed.