_Exclusive three-storey shophouse on 52 Pagoda Street for sale by Expression of Interest
Singapore, 26 July 2023 – Knight Frank Singapore, as the exclusive marketing agent, is pleased to offer for sale an exclusive three-storey shophouse on 52 Pagoda Street via EOI.
The subject property sits on a land measuring 140.1 square metres (sqm) or approximately 1,508 square feet (sf), with a total floor area of 371.6 sqm or 4,016 sf. Its land tenure comes with 99 years from 30 June 2022, with approximately 98 years’ lease remaining.
Located in the vibrant and historic Chinatown-Kreta Ayer Conservation area, the shophouse is adjacent to the Chinatown Heritage Centre and surrounded by many urban and lifestyle amenities including People’s Park Complex, The Central, Chinatown Complex Market, and ChinaTown Point. Facing a busy pedestrian walkway, the subject property enjoys high visibility and a healthy footfall. Along the same row of shophouses are interesting retailers offering calligraphy materials, unique homewares and charming trinkets.
The property is easily accessible via two main arterial roads, New Bridge Road and South Bridge Road. It is a stone’s throw to the Chinatown MRT interchange station which connects the North-East Line and the Downtown Line. The Central Business District and popular tourist attractions such as Marina Bay Sands, Gardens by the Bay and ION Orchard, are a short drive away.
Ms Mary Sai (蔡竺樾), Executive Director, Capital Markets, Knight Frank Singapore (执行董事,资本市场部, 莱坊), said, “The listing’s ground floor space is permitted for restaurant use even though it is currently tenanted by a souvenir shop. The upper floors are currently vacant and suitable for commercial offices or boutique hospitality operators given the listing’s ideal location and large catchment area.”
Demand for shophouses
The demand for shophouses remained healthy notwithstanding the economic uncertainty, with buyers continuing to acquire such assets in good locations as they recognise its value and potential appreciation. Additional Buyer Stamp Duty and Seller Stamp Duty are not applicable for such commercial properties. Shophouse transactions in H1 2023 was approximately S$712 million, a 7.2% increase from S$664 million in H2 2022.
Sai added, “Prime shophouses like these are rare and continue to be trophy assets for investors and end-users. The subject property has capital appreciation potential and provides further upside for rental generation when the building is fully occupied.”
The listing’s indicative guide price of S$22 million works out to approximately S$5,500 per square foot (psf) based on the total floor area. For reference, a conserved shophouse at 11 New Bridge Road with land area of 1,452 sf, gross floor area of 5,324 sf and balance lease of 92 years, recently transacted at S$23.8 million, or approximately S$4,470psf, just two months ago.
“In present high interest rate environment, more investors are relying less on debt and prefer shophouses, that are smaller in quantum value. Notably, shophouses zoned commercial are even more sought following the removal of "commercial and residential" from the list of land-use zones in the Residential Property Act. Given the subject property’s long tenure, ideal location and potential upside, we expect keen interest in this listing.”
The EOI will close on 30 August 2023 (Wednesday) at 3:00 PM.
Shophouse Transactions in Districts 1 and 2 (H1 2023)
Photo of 52 Pagoda Street
Source: Knight Frank Singapore
For further information, please contact:
Mary Sai
Executive Director, Capital Markets
+65 9388 7879
mary.sai@sg.knightfrank.com
CEA Reg. No. R027878I
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