$8.5 Million Chinatown Conservation Shophouse for Sale

It’s not everyday a shophouse in Chinatown goes up for sale. These properties are considered goldmines, so they’re never on the market for long; but if you’ve got the funds, here’s what you’ll want to know:

What’s for sale?

A three-storey, commercial shophouse has gone up for sale in Chinatown, at an indicative price of $8.5 million. Its estimated gross floor area is 3196 sq ft. This works out to about $2,660 psf.

The blue areas, including those around Sago Street, have been slated for commercial use.

With a frontage of 5.4 metres, it lies along 18 Sago Street on 1,115 square feet. This is on a 99 year-lease, which began in 1991. The URA Master Plan has zoned this area for commercial use.

Details of purchase

Both locals and foreigners will be able to purchase this property, as it is commercial and not residential. Neither Additional Buyers Stamp Duty (ABSD) or Sellers Stamp Duty (SSD) will be imposed on the sale; although seven per cent GST applies for commercial properties.

Returns, aside from the ownership of a beautiful shophouse, include immediate rental income – the shophouse is fully tenanted, with the relevant leases expiring between 2020 and 2022.

Prospective new owners may want to consider the potential of the shophouse for further development: some options are investments in addition and alteration refurbishment works, or exploiting the second and third floors as space for a capsule hotel (unfortunately, a regular hotel is unfeasible in the small space available). Should the new owner wish to continue renting out the flat, the ground-floor space already has approval for food and beverage use.

Further development of the property is subject to authorities’ approval.

Why you should invest in a Shophouse:

Shophouses are an easily recognisable icon of Singapore’s past, reflecting our multicultural influences in their architecture.

Those that have survived Singapore’s urban evolution are fiercely protected by strict conservation rules and guidelines for restoration and alterations, so as to preserve them for future generations.

Investors in such shophouses include private real estate funds, family offices and high net worth individuals (The multimillion dollar prices these estates command unfortunately make them inaccessible to most).

Commercial shophouses do not often come up for sale in Singapore; their owners are generally unwilling to give up possession. Only about 6,700 conservation shophouses are left in the country, contributing to scarcity value. Those in prime central locations (such as this one in Chinatown) are even more valuable.

They are popular with retail shops, as a less restrictive alternative to the mainstream options of shopping malls – malls have limitations that prevent more creative interior design or makeovers. The increased space and freedom of shophouses makes them highly attractive; some businesses (such as designer boutiques) find this an essential part of branding.

If the prospect of owning one excites you, then make your expression of interest before it closes on 2nd October, at 3pm.

What are your thoughts on the sale of the shophouse? Voice your thoughts in our comments section or on our Facebook community page.

Looking for a property? Find the home of your dreams today on Singapore’s largest property portal 99.co! You can also access a wide range of tools to calculate your down payments and loan repayments, to make an informed purchase.

About Brandon Tay

Looking to sell your property?

Whether your HDB apartment is reaching the end of its Minimum Occupation Period (MOP) or your condo has crossed its Seller Stamp Duty (SSD) window, it is always good to know how much you can potentially gain if you were to list and sell your property. Not only that, you’ll also need to know whether your gains would allow you to right-size to the dream home in the neighbourhood you and your family have been eyeing.

One easy way is to send us a request for a credible and trusted property consultant to reach out to you.

Alternatively, you can jump onto 99.co’s Property Value Tool to get an estimate for free.

If you’re looking for your dream home, be it as a first-time or seasoned homebuyer or seller – say, to upgrade or right-size – you will find it on Singapore’s fastest-growing property portal 99.co.

Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.

Join our social media communities!