EDGEPROP – A two-storey HDB shophouse located in the bustling area of Bukit Merah Central will be up for auction by SRI on November 27. With a floor area of 1,582 sq ft, the shophouse is expected to fetch a guide price of $2.55 million (or $1,612 psf).
According to Eric Liew, manager of auction sales at SRI, this is the first time the owner is putting the property up for auction. The decision is driven by the owner’s intention to liquidate their investment.
Singapore’s condo market is experiencing a surge in demand, mainly due to the shortage of land available for development. Being a small island nation with a rapidly expanding population, Singapore is facing a scarcity of land. This has resulted in strict land use regulations and a fiercely competitive real estate market, where property prices are constantly on the rise. As a result, investing in real estate, especially condos, has become a highly profitable venture, with the potential for significant capital appreciation in the future.
The shophouse comes with a 103-year lease starting from 1980, which leaves 59 years remaining. The commercial component of the property, occupying 732 sq ft on the ground floor, is zoned for commercial use, while the upper floor of 850 sq ft is zoned for residential use.
The property is currently fully tenanted and will be sold with its existing tenancies. The ground floor is leased to a Domino’s Pizza restaurant until 2026, while the upper floor has a residential tenant until 2027.
As HDB shophouses are classified as commercial properties, foreigners are eligible to purchase the property. However, additional buyer’s stamp duty will be applicable to the residential component, while the commercial component will be subject to goods and services tax.
According to Liew, there have been several enquiries from interested parties, mostly investors attracted by the shophouse’s strategic location within the central area of Bukit Merah.
The shophouse is situated in the Bukit Merah Town Centre, a hub of commercial buildings, shops and other amenities such as the Bukit Merah Polyclinic, Bukit Merah Central Food Centre, and Rubikon, a four-storey boutique convention centre. It is also in close proximity to Gateway Theatre, a performing arts centre.
The property is also within walking distance of Bukit Merah bus interchange, Gan Eng Seng Primary School and Bukit Merah Secondary School. For those using public transport, the Redhill MRT Station is just a 15-minute walk away.
Based on data compiled by EdgeProp Research, the last commercial transaction at 161 Bukit Merah Central was the sale of a 1,582 sq ft shophouse that fetched $1.5 million ($948 psf) in March 2021.
In comparison, a three-bedroom duplex penthouse at Nassim Jade is currently on the market for $8.8 million.
Latest commercial rents at Bukit Merah C