International property consultant, Colliers International’s upcoming auction will feature two prime investment opportunities – two strata commercial units located on the ground floor of a row of two-storey shophouses at 1 and 1B Figaro Street, and a two-storey refurbished corner shophouse at 362 Tanjong Katong Road. The auction is slated for 29 July 2015 at 2.30pm at Amara Singapore Hotel.
The subject property is jointly marketed by Colliers International and Historical Land.
1 and 1B Figaro Street
Located off Upper East Coast Road, the subject property comprises two commercial strata units – with separate titles – on the ground floor in a row of two-storey shophouses, which have a 9,999-year leasehold tenure w.e.f. 1 June 1966.
1 Figaro Street is a corner unit with prominent frontages onto both Figaro Street and Jalan Tua Kong. Its floor area is approximately 2,203 sq ft and is currently tenanted to a food and beverage (F&B) establishment.
1B Figaro Street is an intermediate unit, adjoining to 1A Figaro Street, with a frontage onto Figaro Street. Its floor area is approximately 1,560 sq ft and is currently tenanted to a gourmet butchery cum wine retailer.
These two ground-floor shophouse units are currently tenanted at a combined rent of S$24,000 per month, which reflects a gross yield of approximately 4.17 per cent. The last tenancy will expire in 2018, with an option to renew.
Indicative price for the subject property is S$6.9 million, which works out to approximately S$1,833 per sq ft. Additional Buyers’ Stamp Duty and Sellers’ Stamp Duty are not applicable. There is no restriction on foreign ownership for the subject property.
Ms Grace Ng (黄黎明), Deputy Managing Director of Colliers International, says, “What is unique about this property is that it is difficult for shops to obtain a permanent change of use to F&B; and 1 Figaro Street is one of the rare few in the market that has obtained the permanent approval for such use. In addition, the price is reasonably competitive, especially when the asking price for shops that are approved for F&B use is typically more than S$2,000 per sq ft.”
A similar shop space at Upper East Coast was sold at S$2,595 per sq ft in October 2014, while another at Joo Chiat was sold at S$3,238 per sq ft in December 2014.
The subject property enjoys the benefit of a huge catchment of patrons, as the locality comprises mainly landed houses, low-rise apartments and condominiums, shophouses, as well as commercial and mixed-use developments. Schools in the vicinity include Saint Stephen’s School, Opera Estate Primary, CHIJ Katong Primary School, Tao Nan School and Temasek Junior College. It is conveniently accessible via East Coast Parkway, as well as the Kembangan, Bedok and the future Siglap MRT stations. There is ample car park space along Jalan Tua Kong and Figaro Street, as well as a public car park at Upper East Coast Road.
362 Tanjong Katong Road
Located within the Tanjong Katong conservation area, the freehold two-storey refurbished corner shophouse sits on a 2,025 sq ft site and has a total floor area of approximately 3,800 sq ft.
Under the 2014 Master Plan, the subject property is zoned for “Residential with Commercial at 1st Storey” use, with a plot ratio of 3. Under the conservation guidelines, a rear extension of up to four storeys is allowed.
The first storey is currently leased to a restaurant; of which the temporary permission for change of use to “Restaurant” will expire on 18 August 2016. Access to the second storey is via an external rear staircase. The second storey accommodates seven fully-furnished boutique studio units; all of which are currently vacant. When fully tenanted, the potential rental revenue is approximately S$31,100, which reflects a gross yield of about 5.6 per cent.
Indicative price for the subject property is S$6.6 million, which works out to S$3,259 per sq ft based on land area.
Ms Ng says, “A corner conservation shophouse unit that also enjoys prominent dual road frontage is rarely made available for sale; and at such a competitive asking price, we are optimistic that the subject property will greatly appeal to investors. Besides, the successful buyer has the option to increasing the floor area, depending on his/her business needs.”
A similar shophouse at East Coast Road was sold at S$4,314 per sq ft based on land area in November 2014.
The immediate vicinity comprises a mixture of landed houses, condominium developments and shophouses. Some prominent developments include City Plaza, Lion City Hotel and One KM, among others. Nearby schools include Tanjong Katong Girls’ School, Tanjong Katong Secondary School, Chung Cheng High School and Canadian International School, among others. On top of being conveniently accessible via East Coast Parkway and Pan Island Expressway, the subject property is also located close to public transport, such as Dakota and the future Amber MRT stations. Ample parking facilities can be found at the public car park across the property.