The properties at 6 and 7 Perak Road, situated in Singapore’s Jalan Besar/Little India precincts, have recently been put up for sale via tender with a guide price of $13 million. This equals to about $2,425 psf on its total floor area of 5,360 sq ft. Located just a three-minute walk to Rochor MRT Station, these two-storey shophouses with mezzanine space have an 11.4m- frontage that occupies an area of approximately 2,870 sq ft.
In its well-kept condition, these properties require minimal refurbishments and are approved for usage as a backpackers’ hostel. Gracelynn Zhu, who is marketing these shophouses under PropNex Realty’s division- PropNex Shophouse Elites, notes that with the revival of the tourism sector, the shophouses may be ideal for hostel operators looking to tap renewed interest for accessible accommodation. Additionally, investors on the lookout for assets that can provide strong rental and capital growth could find these properties attractive.
Currently, the owner is receiving “multiple offers” from prospective tenants; however, the vendor is opting for vacant possession, allowing the future buyer to decide which type of tenant profile suits the property best. Furthermore, as the properties are zoned for commercial use, no additional buyer’s stamp duty is applicable on the purchase of the properties.
Given its condition and strategic location, Zhu estimates that the shophouses could potentially bring in a gross rental yield of over 3%. The tender will close on May 8th at 3pm.
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The properties at 6 and 7 Perak Road, located near Singapore’s Jalan Besar/Little India precincts, are up for sale via tender with a guide price of $13 million. This amount is equivalent to $2,425 psf on its total floor area of 5,360 sq ft. Patrons of these two-story shophouses, with their mezzanine space and an 11.4m-wide frontage, will find them just a three-minute walk away from Rochor MRT Station.
PropNex’s division- PropNex Shophouse Elites, led by Gracelynn Zhu, is marketing the properties. Even with the current owners receiving “multiple offers” from potential tenants, vacant possession will be granted to the new buyer. Moreover, with the properties being zoned for commercial use, no additional buyer’s stamp duty applies. Looking at their well-maintained condition and strategic location, Zhu estimates that the shophouses could garner a gross rental yield of over 3%.
The revival of the tourism sector post-pandemic could tempt hostel operators looking to benefit from the increasing interest for convenient and accessible accommodation. Investors who are searching for assets that can provide strong rental and capital growth may also find these properties to their liking.
The tender for these properties will close on May 8, 3pm.
RELATED NEWS
– 999-year Jalan Besar shophouse selling for $5.9 mil
– Five-storey commercial shophouse at 32 Hongkong Street for sale at $8.5 mil
– Commercial shophouses at Club Street for sale at $25 mil