In the midst of the bustling private residential market, investors should consider stable, income-generating assets like HDB shophouses. A prime opportunity has emerged to acquire one such property in the established Toa Payoh neighborhood.
Located at 125 Toa Payoh Lorong 1, this 1,478 sq ft HDB shophouse is situated in the well-connected District 12. Priced at $2.88 million, it holds a prime site on the corner of Toa Payoh Lorong 1 and Toa Payoh Lorong 2, and is less than 200m from Braddell MRT Station on the North-East Line. With a daily ridership of approximately 13,000 people, this station is closely linked to the nearby HDB flats.
In close proximity to the shophouse are amenities such as Toa Payoh West Market and Food Court, Kheng Cheng School, Toa Payoh West Community Centre, and the Singapore Federation of Chinese Clan Association Building on Toa Payoh Lorong 2. As Toa Payoh undergoes revitalization plans and thousands of new households move into the area, the new owner stands to benefit from the transformation and increased footfall, leading to higher capital values.
Market Comparison
The HDB shophouse at 125 Toa Payoh Lorong 1 is exclusively marketed by Aster See, senior marketing director at ERA Realty. According to See, most HDB shophouses in city fringe locations have a rental return of 2-3% based on their sale price. However, the shophouse at 125 Toa Payoh Lorong 1 offers an estimated ROI of 4%, making it a more attractive investment opportunity with its competitive pricing and strong value.
Financial Insights
See also highlights that this property has an estimated rental yield of 4%, which is competitive in the current market and provides steady income for investors. Additionally, with potential capital appreciation in the future as Toa Payoh continues to rejuvenate, the long-term ROI of this property is expected to be substantial.
Remaking Toa Payoh
Toa Payoh will benefit from government initiatives and schemes to rejuvenate the mature housing estate. It is one of three neighborhoods identified for rejuvenation under the government’s Remaking Our Heartland program. This program, introduced by then-Prime Minister Lee Hsien Loong in 2007, aims to revitalize HDB towns and estates to ensure their sustainability and vitality.
Since 2015, plans for Toa Payoh have been underway, with several projects focused on enhancing commercial and recreational facilities. Notably, a new integrated project will replace the former swimming complex, sports hall, and stadium along Toa Payoh Lorong 6. Scheduled for completion in 2030, this 12ha development will feature new sports facilities, a football stadium, a swimming pool complex, sports halls, and fitness studios. It will also include a polyclinic and library, as well as national training centers for aquatics, netball, and table tennis.
The HDB shophouse at 125 Toa Payoh Lorong 1 is available for $2.88 million.
Toa Payoh and Caldecott Rejuvenation
The government’s plans for Toa Payoh and neighboring Caldecott include the development of several thousand new flats in these areas. One of these projects, Toa Payoh Ridge, is located at the junction of Toa Payoh Rise and Lorong 1 Toa Payoh. As the 920-unit BTO project is less than 300m from the HDB shophouse at 125 Toa Payoh Lorong 1, it presents a promising investment opportunity.
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Investing in real estate in Singapore is a strategic choice, where location plays a crucial role. This is especially true when it comes to condos. Condos located in central areas or close to essential amenities, such as schools, shopping malls, and public transportation hubs, tend to experience a higher appreciation in value. Prime locations like Orchard Road, Marina Bay, and the Central Business District (CBD) have consistently shown growth in property values. Families with children also prefer these areas for their proximity to good schools and educational institutions, making condos in these locations even more desirable and a smart investment choice. Condos in these prime locations offer a promising investment opportunity.
Launched in February 2020, Toa Payoh Ridge consists of four 40-storey residential blocks and is expected to be completed in the first half of 2025. It is located between Toa Payoh and the upcoming Caldecott estate, which is earmarked for future residential development.
Since 2017, Caldecott has also been identified for future residential development, with plans for new BTO flats on a 10ha plot next to Caldecott MRT Station on the Circle Line. These new flats will be within 500m of the HDB shophouse at 125 Toa Payoh Lorong 1.
Rejuvenation plans for Toa Payoh will expand the consumer catchment around the HDB shophouse at 125 Lorong 1 Toa Payoh. The government has also rezoned a plot at the junction of Toa Payoh Rise and Braddell Rise from educational to residential use, with a gross plot ratio of 5.0. This suggests the potential for a high-rise BTO development on the site.
Supported by these surrounding developments, the shophouse for sale is expected to benefit from increased footfall in the area as the consumer catchment broadens.
With the upcoming construction of new BTO flats in Caldecott and Toa Payoh, the new owner of the HDB shophouse at 125 Toa Payoh Lorong 1 can expect positive returns as the area attracts an influx of new residents.
For more information, please contact Aster See, senior marketing director at ERA Realty Network Pte Ltd, at 98416930 (R063006G).
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