Three freehold shophouses in Buona Vista going for $22 million
Three freehold shophouses at 30, 32, and 38 South Buona Vista Road have been put up for sale. CBRE is the sole marketing agent for this sale.
The shophouses at 30 & 32 South Buona Vista are a pair of adjoining buildings that sit on a combined land area of 6,323 sq ft and have a floor area of 7,935 sq ft. The guide price for these properties is $13 million, which translates to $1,638 psf on the total floor area.
According to CBRE, the shophouses can be acquired individually or collectively. All of them are zoned “residential with commercial at the first storey” with a plot ratio of 3.0 under the latest Master Plan. The shophouses also have a combined frontage of 20m on South Buona Vista Road. The shophouses are fully leased to a fitness operator and a F&B establishment, while the upper residential floors are leased to co-living and serviced apartment operator Cove.
“Well-located suburban shophouses have garnered interest from investors over the past few years,” says Clemence Lee, executive director of capital markets, Singapore, at CBRE. “This portfolio of freehold shophouses boasts an attractive yield of approximately 3.5%, providing investors with stable, defensive and attractive returns.”
“The lack of retail amenities, coupled with a substantial number of new upcoming condominium developments in the neighbourhood, is likely to drive rents upwards in tandem with the significantly growing residential catchment,” says Lee. New projects in the vicinity include the recently previewed Terra Hill on Yew Siang Road.
The expression of interest exercise for the sale closes on March 22.
Mondania’s Khor believes 18 Hongkong Street will attract keen interest from a diverse pool of buyers, due to its strategic location and its wide redevelopment potential spanning F&B, hotel, offices and retail. In addition, its commercial zoning allows foreigners and companies to purchase the properties without additional buyer’s stamp duty or seller’s stamp duty. The property has another factor going for it: its address number. “The number ‘18’ is considered lucky and auspicious — we expect the building number alone will pique the interest of a number of buyers,” Khor says.