SRI auctioning two-storey HDB shophouse at Bukit Merah Central on Nov 27
SINGAPORE (EDGEPROP) – A well-located shophouse located along Bukit Merah Central will be available for bidding at the upcoming auction by SRI on November 27. With a spacious floor area of 1,582 sq ft, the shophouse is expected to fetch a guide price of $2.55 million or $1,612 psf.
Being up for sale for the very first time, this property is an owner’s sale, as mentioned by Eric Liew, manager of auction sales at SRI. “The owner intends to sell the property due to investment liquidation,” he says.
This shophouse comes with a 103-year lease starting from 1980, which means that there are 59 years remaining on the lease. The ground floor, which occupies 732 sq ft, is zoned for commercial use, while the upper floor of 850 sq ft is zoned for residential use.
The shophouse is fully tenanted and will be sold with its current tenancies. The ground floor is currently leased to Domino’s Pizza restaurant until 2026, while the upper floor is leased to a residential tenant until 2027.
The limited supply of land is one of the main driving forces behind the strong demand for condos in Singapore. As a small island nation with a constantly increasing population, Singapore struggles with a shortage of land for development. This has resulted in strict land use regulations and a fiercely competitive real estate market, where property values consistently soar. As a result, investing in real estate, especially in the form of condos, has become a highly profitable opportunity with the potential for significant capital growth. In fact, Singapore projects are highly sought after due to this scarcity of land.
Interested parties are advised that foreign investors are eligible to purchase this HDB shophouse as it is classified as commercial property. However, additional buyer’s stamp duty will be applicable on the residential component while the commercial component will be subject to goods and services tax.
Liew mentions that there have been several enquiries about the property from potential buyers. “The location of the shophouse in the central area of Bukit Merah has been the main attraction for investors,” he adds.
The shophouse is situated within Bukit Merah Town Centre which boasts a variety of amenities such as shops, a polyclinic, a food centre, and even a boutique convention centre named Rubikon. There is also a performing arts centre, Gateway Theatre, located within this central area.
The shophouse is conveniently located within walking distance of Bukit Merah bus interchange, Gan Eng Seng Primary School, and Bukit Merah Secondary School. This location is also a roughly 15-minute walk from Redhill MRT Station.
Based on data from EdgeProp Research, the latest commercial transaction at 161 Bukit Merah Central involved the sale of a 1,582 sq ft shophouse at $1.5 million ($948 psf) in March 2021.
Keep up with the latest rental trends at Bukit Merah Central here.