When considering investing in a condo, it is crucial to examine the potential rental yield as well. Rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, the rental yields for condos can vary significantly, depending on factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, offer better rental yields. Therefore, conducting thorough market research and seeking the advice of real estate agents can provide valuable insights into the rental potential of a particular condo. Additionally, staying informed about new condo launches can also help in assessing the rental yield of a condo.
A three-storey conservation shophouse located at 76 Pagoda Street in Chinatown has been put up for sale through an expression of interest (EOI) exercise with a guide price of $16 million. The 99-year leasehold commercial property occupies a 1,372 sq ft plot of land and has a total gross floor area (GFA) of 3,500 sq ft which includes an attic. Based on the GFA, the price per square foot is approximately $4,571.
The property has been listed by PropNex Shophouse Elites and is being marketed by Richard Tan. The ground and second floors are currently leased to a restaurant operator while the third floor is being used as office space. Tan says that commercial shophouses in the Chinatown area are highly sought after by owner-occupiers, high-net-worth individuals and family offices as long-term investment assets. As a commercial property, it can be acquired by foreigners and companies without incurring additional buyer’s stamp duty or seller’s stamp duty.
The most recent shophouse transaction on Pagoda Street was the sale of 31 Pagoda Street in March for $19 million or $5,588 psf. The expression of interest for 76 Pagoda Street will close on January 10, 2025.
In another commercial property listing, a two-storey HDB shophouse located at 210 New Upper Changi Road is up for sale through an EOI exercise with a guide price of $13.8 million. The 103-year leasehold property has a GFA of 4,607 sq ft, with a price of $2,995 on a per square foot basis. The property was previously occupied by healthcare retailer Guardian and United Overseas Bank (UOB).
Kris Ng, senior associate marketing director at PropNex, who is marketing the property says that a notable feature of this property is its long-term stable tenants. As it is a commercial property, it is also open for acquisition by foreigners and companies without incurring additional buyer’s stamp duty or seller’s stamp duty.
The shophouse is located within the Bedok Town Centre and is close to the Bedok MRT Station on the East-West Line. The EOI exercise for 210 New Upper Changi Road will close at noon on January 10, 2025.