Three-storey conservation shophouse in Chinatown for sale at $8.5 mil
A 99-year leasehold, three-storey conservation shophouse at 18 Sago Street is up for sale at an indicative price of $8.5 million. This translates to $2,660 psf, based on the gross floor area of 3,196 sq ft. The property has a land area of about 1,115 sq ft.
The sale will be done via expression of interest (EOI), with CBRE as the sole marketing agent.
The property is zoned for commercial use under the 2014 Master Plan. It enjoys high visibility, and has a 5.4m frontage along Sago Street. It is located less than 300m from the Chinatown MRT Interchange Station. The upcoming Maxwell MRT Station on the Thomson-East Coast Line, which is 150m away, will enhance accessibility when it opens in 2021.
“Commercial conservation shophouses, particularly those in prime central locations such as Chinatown, have been constantly sought after by investors, including private real estate funds, family offices and high- net- worth individuals,” says Angela Lim, senior manager, capital markets, of CBRE. According to her, based on URA Realis, among all the conservation shophouses along the streets within the Kreta Ayer Conservation Area, those along Sago Street rarely changed hands.
At $8.5 million, Lim notes that it is “an attractive offer as the price is at a palatable quantum”. She says: “Based on past transactions, capital appreciation for conservation shophouses is about 4% to 8% per annum. The successful buyer will enjoy immediate rental income as the shophouse is fully tenanted with leases expiring between 2020 and 2022.”
She adds: “He/she can also explore value-adding to the property by conducting A&A [additions & alterations] refurbishment works or converting the second and third floor into a capsule hostel, subject to authorities’ approval.” The ground-floor space has been approved for F&B use.
The property is open to both locals and foreigners. There will be no additional buyer’s stamp duty or seller’s stamp duty imposed.
The EOI exercise will close on Oct 2, 2019, at 3pm.