Two well-maintained conservation shophouses located in District 8’s Jalan Besar/Little India precinct have been put up for sale with a guide price of $13 million. With a total floor area of 5,360 sq ft, the two-storey shophouses coupled with its mezzanine space is available at a price of $2,425 psf. The properties come with a land area of approximately 2,870 sq ft and a frontage of 11.4 metre along Perak Road.
These shophouses are conveniently situated merely three minutes away from Rochor MRT Station and have been approved for use as a backpackers’ hostel. Gracelynn Zhu of PropNex Shophouse Elites, which is the property’s marketing agency, reveals that the current owner has received multiple offers from potential tenants, despite their well-kept condition and ideal location surrounded by amenities and close to the Bugis area. However, vacant possession will be provided to the new owner who can then decide which type of tenant would best suit the property.
Post-pandemic, the recovery of the tourism sector has been remarkable, thus making these shophouses a great investment for hostel operators who plan to tap into the renewed interest in accessible accommodation among travellers. On the other hand, investors seeking a rental and capital growth will likely be attracted to the property’s estimated potential of achieving a gross rental yield of over 3%. Furthermore, no additional buyer’s stamp duty is payable since the properties are zoned for commercial use.
The close of tender will be on 8th May 2021 at 3pm. During the auction, one should take note of the recent transactions of properties situated on Perak Road.
In conclusion, the shophouses at 6 and 7 Perak Road may prove to be a smart purchase for both investors and hostel operators, due to its convenient location and strategic positioning, relatively low cost and rental potential. The overall condition of the building is well-maintained, thus requiring minimal refurbishment. The new owner will be provided with vacant possession and not forget the absence of additional buyer’s stamp duty.