A two-storey freehold coffee shop unit at Hoa Nam Building has been put up for sale via an Expression of Interest (EOI) exercise.
The guide price of the property is S$28 million. Its total strata floor area is approximately 4,510 sq ft, translating to a price psf of S$6,208.
The EOI exercise comes after the recent multi-million-dollar sales of kopitiams in the heartlands. Back in June, a coffee shop in Tampines was sold for a record S$41.68 million. This was followed by the sale of a Yishun coffee shop, which fetched S$40 million, or a whopping S$9,361 psf. The price psf is higher than the average price psf of ground-floor retail units at Far East Plaza and Lucky Plaza.
In July, a coffee shop in Jurong West was reportedly sold for an eight-figure sum.
Sophia Lim, Associate Director, Investment Sales & Capital Markets at Savills Singapore, said, “With the recent transactions of HDB leasehold coffee shops at record prices, this asset provides a rare opportunity to acquire a freehold coffee shop enjoying prominent frontage and visibility within the fast-evolving location of Jalan Besar.”
According to Savills, the exclusive marketing agent for the property, the unit enjoys a prominent 40-metre street frontage along Jalan Besar. It also has rare F&B approvals for both levels. In addition, the current owner has obtained permission from the MCST to place sign boards on the building’s facade.
The ground floor of the coffee shop comprises six food stalls and one drink stall. Meanwhile, the upper floor can be accessed in two ways:
- An internal staircase from the ground floor
- An external escalator that leads to the front of the unit
This allows the buyer to reconfigure the space on the upper floor. It can be used for additional seating or be subdivided into smaller spaces to lease out for higher rental income.
As the property is zoned for “commercial” use, the buyer will not have to pay Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) for it. Foreigners and companies are eligible to buy it.
“Freehold coffee shop units have long been viewed as generational assets and are usually tightly held. The coffee shop asset class has demonstrated its strength and resilience during the pandemic,” said Lim.
“Astute investors and operators are aware that coffee shops within the Jalan Besar precinct are few in supply and rarely available for sale.”
Located along Jalan Besar, Hoa Nam Building is within a 10-minute walking distance of two MRT stations: Farrer Park MRT and Bendemeer MRT.
Lim added that there would be increased potential customers in the area in future, with the upcoming 1,650 HDB BTO units from McNair Heights, Kempas Residence and Towner Crest.
The EOI exercise will close on Wednesday 21 September, at 3pm.
What do you think of the recent multi-million-dollar sales of kopitiams? Let us know in the comments section below.
If you found this article helpful, 99.co recommends Do sales of multi-million-dollar kopitiams affect price and demand of surrounding HDB flats? and Tanjong Pagar shophouse up for sale at S$12m.
About Virginia Tanggono
Virginia covers the property news in Singapore, from record sales to profile stories on home ownership. In her free time, she occasionally searches for spoilers of movies and TV shows.
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