Singapore
Iconic row of three adjoining 2-storey conservation shophouses located on a corner plot along the main Geylang Road for sale via Expression of Interest
March 15, 2023
Associated Contact
Singapore, 15 March 2023 – CBRE, as the exclusive marketing agent, is pleased to offer for sale an iconic row of three adjoining 2-storey conservation shophouses located at 489, 491 and 493 Geylang Road. Commanding an impressive dual road frontage of 44-metres along Geylang Road and Lorong 27 Geylang collectively, the shophouses enjoy high visibility and footfall throughout the day.
The sale will be conducted through an Expression of Interest exercise, which will close on 19 April 2023, Wednesday at 3pm.
Sitting at the corner where Geylang Road and Lorong 27 Geylang intersects, the shophouses have a combined land area of 3,830 sq ft and a total floor area of approximately 7,388 sq ft. Currently fully tenanted, the ground floor is presently occupied by an eating house, while the upper floors are fully occupied by a karaoke lounge, offering the incoming investor stable and immediate rental income.
Located within the Geylang Conservation Area, the shophouses are currently under-developed and the incoming owner can consider constructing a five-storey rear extension to maximize the total floor area by an additional 4,100 sq ft, or approximately 36% of the maximum allowable floor area, subject to approval from the relevant authorities.
To be sold collectively, the shophouses have an indicative guide price of S$23 million, or approximately S$3,113 psf on the total floor area. The subject property sits on a site that is zoned for ‘Commercial’ use under the 2019 Master Plan and both locals and foreigners are eligible to purchase the subject property, with no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the purchase.
Clemence Lee, Executive Director of Capital Markets, Singapore at CBRE, says, “Astute investors understand the rarity of suburban adjoining shophouses that enjoy superior location attributes and building specifications. With the shophouses’ premium characteristics such as its corner land plot, city fringe location, main street frontage, highly sought-after approvals and underutilized plot ratio, we are confident that it will draw strong interest from a wide pool of buyers that include corporate investors, owner-occupiers, small to mid-sized developers and high-net-worth-individuals. What’s more, the current tenant mix comprising an F&B and entertainment establishment, are highly favoured amongst investors, given their ability to command better rents. Also, the scarcity of approved karaoke lounges and the fact that such approvals are unlikely to be granted these days, make the shophouses even more attractive.”
The subject property is strategically placed between two major growth centres – Paya Lebar Regional Centre and the Kallang Riverside, where numerous new redevelopment projects have been announced. The next phase in Paya Lebar, will see the addition of Paya Lebar Green (former Certis Cisco Centre), where approximately 220,000 sq ft of Grade A office space will be added to the neighbourhood. Paya Lebar Green, combined with the other projects and the existing Geylang Serai Market, Joo Chiat Complex and Wisma Geylang Serai, is set to transform the Eastern sector of Geylang into a vibrant and bustling cultural precinct.
Beyond the western portion of Geylang, Kampong Bugis, which has an 8.2ha white site, is expected to inject 4,000 new private homes and over 50,000 sqm of space for complementary uses such as retail, offices and communal facilities to the waterfront district. The old Kallang airport, that is gazetted for conservation, has also been reserved for future development plans and is expected to make way for sports, leisure and community uses in the interim.
Mr Lee concludes, “As rejuvenation activities in the Geylang precinct continues to intensify with new residential and commercial developments set to break ground over the next few years, the incoming owner is well-positioned to benefit from mid to long term rental and capital appreciation.”
Boasting ornate façades intricately adorned with floral motifs and wooden shutters, evoking a sense of elegance and timelessness, the shophouses are unique and a highly treasured asset class. It is also well served by public transportation and major arterial roads. Aljunied MRT Station is approximately only a short 6-minutes’ walk away, while the nearby Pan-Island Expressway (PIE), Kallang-Paya Lebar Expressway (KPE) and Central Expressway (CTE) makes it highly accessible to other parts of Singapore.
The sale will be conducted through an Expression of Interest exercise, which will close on 19 April 2023, Wednesday at 3pm.
Sitting at the corner where Geylang Road and Lorong 27 Geylang intersects, the shophouses have a combined land area of 3,830 sq ft and a total floor area of approximately 7,388 sq ft. Currently fully tenanted, the ground floor is presently occupied by an eating house, while the upper floors are fully occupied by a karaoke lounge, offering the incoming investor stable and immediate rental income.
Located within the Geylang Conservation Area, the shophouses are currently under-developed and the incoming owner can consider constructing a five-storey rear extension to maximize the total floor area by an additional 4,100 sq ft, or approximately 36% of the maximum allowable floor area, subject to approval from the relevant authorities.
To be sold collectively, the shophouses have an indicative guide price of S$23 million, or approximately S$3,113 psf on the total floor area. The subject property sits on a site that is zoned for ‘Commercial’ use under the 2019 Master Plan and both locals and foreigners are eligible to purchase the subject property, with no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the purchase.
Clemence Lee, Executive Director of Capital Markets, Singapore at CBRE, says, “Astute investors understand the rarity of suburban adjoining shophouses that enjoy superior location attributes and building specifications. With the shophouses’ premium characteristics such as its corner land plot, city fringe location, main street frontage, highly sought-after approvals and underutilized plot ratio, we are confident that it will draw strong interest from a wide pool of buyers that include corporate investors, owner-occupiers, small to mid-sized developers and high-net-worth-individuals. What’s more, the current tenant mix comprising an F&B and entertainment establishment, are highly favoured amongst investors, given their ability to command better rents. Also, the scarcity of approved karaoke lounges and the fact that such approvals are unlikely to be granted these days, make the shophouses even more attractive.”
The subject property is strategically placed between two major growth centres – Paya Lebar Regional Centre and the Kallang Riverside, where numerous new redevelopment projects have been announced. The next phase in Paya Lebar, will see the addition of Paya Lebar Green (former Certis Cisco Centre), where approximately 220,000 sq ft of Grade A office space will be added to the neighbourhood. Paya Lebar Green, combined with the other projects and the existing Geylang Serai Market, Joo Chiat Complex and Wisma Geylang Serai, is set to transform the Eastern sector of Geylang into a vibrant and bustling cultural precinct.
Beyond the western portion of Geylang, Kampong Bugis, which has an 8.2ha white site, is expected to inject 4,000 new private homes and over 50,000 sqm of space for complementary uses such as retail, offices and communal facilities to the waterfront district. The old Kallang airport, that is gazetted for conservation, has also been reserved for future development plans and is expected to make way for sports, leisure and community uses in the interim.
Mr Lee concludes, “As rejuvenation activities in the Geylang precinct continues to intensify with new residential and commercial developments set to break ground over the next few years, the incoming owner is well-positioned to benefit from mid to long term rental and capital appreciation.”
Boasting ornate façades intricately adorned with floral motifs and wooden shutters, evoking a sense of elegance and timelessness, the shophouses are unique and a highly treasured asset class. It is also well served by public transportation and major arterial roads. Aljunied MRT Station is approximately only a short 6-minutes’ walk away, while the nearby Pan-Island Expressway (PIE), Kallang-Paya Lebar Expressway (KPE) and Central Expressway (CTE) makes it highly accessible to other parts of Singapore.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.