Freehold shophouses in East Coast, Geylang put on market

TWO freehold shophouses, one along East Coast Road and the other in Geylang, have been launched for sale by tender.

Their guide prices start from S$9.9 million for the East Coast shophouse and from S$4.98 million for the Geylang property, marketing agent PropNex Realty said on Tuesday.

The shophouse on 711 East Coast Road also has a student hostel licence, which allows accommodation facilities for students studying in local primary schools, secondary schools, junior colleges and tertiary institutions, PropNex said.

The four-storey property has a land area of 2,491 square feet (sq ft) and a total floor area of about 7,670 sq ft. It is zoned for residential with commercial use on the ground floor.

The East Coast shophouse is leased to a retail shop on the ground floor and to a student hostel operator on the upper floors. The nearest MRT station is the upcoming Siglap station on the Thomson-East Coast Line.

PropNex associate division director Loyalle Chin said: "With an appealing rental yield of over 3 per cent and a low per-square-foot (psf) price of around S$1,300 psf, this asset will be considered by high-net-worth individuals with an eye for undervalued investments, as well as family boutique real estate players seeking to expand into hospitality."

A neighbouring shophouse on 693 East Coast Road was recently sold at about S$2,059psf, Mr Chin noted.

Meanwhile, the corner shophouse on 35 Lorong 11 Geylang occupies a land area of 1,820 sq ft and a total floor area of about 3,225 sq ft.

It has a current plot ratio of approximately 1.8 and an allowable gross plot ratio of 3.0, which gives it redevelopment potential.

The two-storey shophouse has full tenancy, with its ground storey approved for food and beverage operations with a liquor licence, while the upper floor is used for housing.

The rental yield of 4.5 per cent for the Geylang shophouse is one of the highest across shophouses in Singapore, Mr Chin said. He noted that the rental yield for a freehold or 999-year leasehold shophouse is typically between 1.8 per cent and 2.5 per cent.

The property's owner is hoping to "sell fast" as the family is seeking to divest the asset for personal reasons, Mr Chin noted.

Located at the junction of Sims Avenue and Geylang Lorong 11, the shophouse is about a 600-metre walk to Kallang MRT Station on the East-West Line.

"Investors seeking strong-yielding assets are expected to enter this year in light of the gradual recovery of Singapore economy and and relatively low interest rates," Mr Chin noted.

The tender exercise for both properties closes at 3pm on Jan 30.