EDGEPROP – On November 27, SRI will be auctioning a two-storey HDB shophouse located at Bukit Merah Central. The shophouse, which has a floor area of 1,582 sq ft, has a guide price of $2.55 million ($1,612 psf).
According to Eric Liew, manager of auction sales at SRI, this is the first time the property is being put up for auction, as the owner is looking to sell the property to liquidate their investment.
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The shophouse has a remaining lease of 59 years and a tenure of 103 years from 1980. The ground floor, occupying 732 sq ft, is zoned for commercial use, while the upper floor, occupying 850 sq ft, is zoned for residential use.
Currently, the shophouse is fully tenanted and will be sold with its existing tenancies. The ground floor is leased to a Domino’s Pizza restaurant until 2026, while the upper floor is leased to a residential tenant until 2027.
As HDB shophouses are considered commercial property, foreigners are eligible to purchase the shophouse. However, additional buyer’s stamp duty will be payable on the residential component and the commercial component will be subject to the goods and services tax.
The shophouse has received several enquiries from interested parties, mostly investors attracted to its central location in Bukit Merah, says Liew.
The Bukit Merah Town Centre, where the shophouse is situated, comprises a cluster of buildings with various amenities such as shops, Bukit Merah Polyclinic, and Bukit Merah Central Food Centre. Nearby, there is also Rubikon, a four-storey boutique convention centre, and Gateway Theatre, a performing arts centre.
The shophouse is within walking distance to the Bukit Merah bus interchange, Gan Eng Seng Primary School, and Bukit Merah Secondary School. The Redhill MRT Station is about a 15-minute walk away.
According to data from EdgeProp Research, the most recent commercial transaction at 161 Bukit Merah Central was in March 2021, where a 1,582 sq ft shophouse was sold for $1.5 million ($948 psf).
As of November 2021 the latest commercial rents at Bukit Merah Central are displayed in the table below.
In summary, the two-storey HDB shophouse at Bukit Merah Central will be up for auction on November 27 by SRI with a guide price of $2.55 million ($1,612 psf). It is currently fully tenanted and has received interest from investors for its central location.