The real estate market in Singapore is currently bustling with activity, but wise investors should not overlook the stability and potential of income-generating assets such as HDB shophouses. A unique opportunity has emerged to acquire one such coveted property in the established Toa Payoh neighbourhood.
Located at 125 Toa Payoh Lorong 1, in the highly sought-after District 12, this 1,478 sq ft HDB shophouse is now available for purchase at $2.88 million. Boasting a prime location bounded by Toa Payoh Lorong 1 and Lorong 2, the property is less than 200m away from Braddell MRT Station on the North-East Line. According to LTA ridership statistics, this station serves approximately 13,000 MRT riders daily and is intricately connected to the nearby HDB flats.
Investing in real estate is a decision that requires careful consideration, and one of the most important factors to consider is location. This is especially true in Singapore, where the location of a condo can significantly impact its value. Condos located in central areas or close to important amenities such as schools, shopping malls, and public transportation hubs have a higher potential for appreciation in value. Prime locations in Singapore, such as Orchard Road, Marina Bay, and the Central Business District (CBD), have consistently shown growth in property values. In addition, condos near reputable schools and educational institutions are highly sought-after by families, making them even more valuable investments. For more options, one can also look into new condo launches that offer potential for growth and impressive facilities. These factors all contribute to the importance of location when it comes to investing in real estate in Singapore.
Strategically situated near Toa Payoh West Market and Food Court, Kheng Cheng School, Toa Payoh West Community Centre, and the Singapore Federation of Chinese Clan Association Building on Toa Payoh Lorong 2, this shophouse is sure to attract a steady flow of foot traffic.
Furthermore, with several rejuvenation plans in the works for the Toa Payoh estate, and the addition of several thousand new households in the vicinity, the new owner stands to benefit from the transformation of the neighbourhood. This is expected to increase pedestrian footfall and drive up capital values in the area.
Market Comparison
The exclusive marketing agent for this property is ERA Realty’s senior marketing director, Aster See. With her extensive experience in the industry, See shares that most HDB shophouses in city fringe locations typically offer a rental return of around 2-3% based on their sales price. In comparison, the shophouse at 125 Toa Payoh Lorong 1 offers an estimated ROI of approximately 4%, making it a more attractive investment opportunity for those seeking higher rental returns.
Financial Insights
See also highlights that this property presents a lucrative investment opportunity with an estimated rental yield of 4%. In the current market, such yields are considered competitive and offer a steady source of income for investors. Combined with the potential for capital appreciation in the future, as Toa Payoh continues to rejuvenate, the long-term ROI of this property is expected to be substantial.
Remaking Toa Payoh
Toa Payoh is set to benefit from various government initiatives and schemes aimed at rejuvenating the mature housing estate. It is one of three neighbourhoods earmarked for rejuvenation under the third phase of the government’s Remaking Our Heartland programme. First introduced by then-Prime Minister Lee Hsien Loong in his 2007 National Day Rally speech, this programme offers comprehensive rejuvenation plans for HDB towns and estates to ensure their sustainability and vitality.
Since 2015, several revitalisation projects have been progressively implemented in Toa Payoh, with a focus on enhancing commercial and recreational facilities. The most significant development is the upcoming integrated project on the site of the former swimming complex, sports hall, and stadium along Toa Payoh Lorong 6.
The integrated development, expected to be completed in 2030, will feature new sports facilities, a football stadium, a new swimming pool complex, indoor sports halls, sheltered tennis courts, futsal courts, netball courts, and fitness studios. The site will also include national training centres for aquatics, netball, and table tennis, as well as a polyclinic and library.
Toa Payoh and Caldecott Rejuvenation
The government’s rejuvenation plans for Toa Payoh will be anchored by the addition of several thousand new flats in the estate. One of the upcoming Build-To-Order (BTO) projects is Toa Payoh Ridge, located at the junction of Toa Payoh Rise and Lorong 1 Toa Payoh. This 920-unit BTO project was launched as part of the February 2020 BTO exercise and is expected to be completed in the first half of 2025. It sits less than 300m away from the HDB shophouse for sale at 125 Toa Payoh Lorong 1.
Caldecott, another neighbouring estate, has been earmarked for future residential development since 2017, when the government announced plans to build new BTO flats on a 10ha plot next to Caldecott MRT Station on the Circle Line. These new flats will be less than 500m away from the HDB shophouse for sale at 125 Toa Payoh Lorong 1.
Signs of an upcoming BTO project in Caldecott are evident, as the URA rezoned a plot at the junction of Toa Payoh Rise and Braddell Rise from educational to residential use last February, with an impressive gross plot ratio of 5.0. This suggests a high-rise BTO development may be in the pipeline for the site.
With these surrounding developments and the increased footfall in the area, the shophouse for sale at 125 Toa Payoh Lorong 1 is well-positioned for future success.
Contact Aster See at 98416930, Senior Marketing Director (R063006G), ERA REALTY NETWORK PTE LTD for more information.
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