Conserved Neil Road shophouse up for auction with S$8m asking price

A CONSERVED two-storey shophouse located at 65 Neil Road is being put up for sale by auction for at least S$8 million, translating to about S$2,800 per square foot (psf) based on a gross floor area of 2,834 sq ft.

The shophouse comes with an attic and has a land area of 1,413 sq ft, real estate firm Collier's International said on Monday. It also has 99-year leasehold tenure with effect from July 4, 1989.

Colliers understands that the shophouse's owner has engaged an architect to review potential additions and alterations work which could add around 602.5 sq ft to the gross floor area. This brings the overall pricing down to below S$2,500 psf.

Additional buyer's stamp duty and seller's stamp duty (SSD) are not applicable due to the shophouse's commercial use zoning.

Currently, the ground floor of the shophouse is leased to an entertainment establishment which has been occupying the space for the past 15 years.

The lease for the second floor to another tenant will be expiring at end-2019. Subject to approval from the Urban Redevelopment Authority, the floor may be used for restaurant, clinic, commercial school, gym/fitness centre, night club, karaoke, student hostel, and residential use, potentially co-living concepts.

Steven Tan, Colliers International director of capital markets and investment service, said a heightened interest in shophouses has been seen since new cooling measures were introduced in July 2018.

"Those in prime areas are considered a good investment option owing to their superior location, healthy pedestrian traffic, and the vibrant activities in the vicinity. Generally, shophouses also see good leasing demand and enjoy relatively good return," he added.

The shophouse will be offered for sale at an auction to be held at 2.30pm on Sept 30 at Amara Singapore, Level 3, Connection Room.

This will be together with a good class bungalow at 7 Chestnut Crescent in Bukit Panjang, which will also be put for sale via auction with an asking price of S$9 million, Colliers International said on Monday in the same announcement.