Row of Toa Payoh shophouses up for sale with S$15.9m guide price

A ROW of six Housing Development Board (HDB) shophouses along Toa Payoh have been launched for sale via an expression-of-interest (EOI) exercise with a guide price of S$15.9 million.  

Located at Lorong 7 Toa Payoh, four of the six shophouses are adjoining units with a total ground floor area of 743 sq ft each. 

The $15.9 million guide price works out to S$1,865 per square feet (sq ft) with an estimated gross built-in area of 8,501 sq ft, sole marketing agent Shophouse Collective, a division under PropNex Realty, said on Tuesday (Nov 1). 

There is a fifth adjoining corner unit with an additional floor area of 1,506 sq ft.

“(This) enhances the space planning in conjunction with the other four adjoining units,” said Shophouse Collective in a press statement. 

“Therefore, it is possible for a single buyer to subsequently combine the four adjoining shops and the corner adjacent unit into one larger retail shop or supermarket, subject to relevant authorities’ approval.”

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Additionally, all the units on the ground floor and its living quarters are currently fully tenanted.

Buyers can hence expect a rental yield of 3 per cent based on existing rental income, said the commercial real estate agency. 

It added that the shophouses’ upper floors are accessible via a separate lift lobby, so their living quarters on the second floor can be rented out on their own. 

The shophouses are classified as “commercial”, meaning that the sale is open to both locals and foreigners.

Additional buyer’s stamp duty will only apply to the living quarters on the second floor, which comprise a smaller percentage of the valuation, noted Shophouse Collective. 

Shophouse Collective founder and strategist Lukas Teo highlighted that HDB shophouses located in desirable locations are in short supply. 

“It is expected that commercial-titled HDB shophouses will continue to be highly sought after due to their relatively higher yield compared to other classes of commercial properties,” he said. 

The EOI for the shophouses will close at 4 pm on Dec 2.