By Raphael Lim
source: The Business Times
At least three shophouses on one end of New Bridge Road have been put up for sale this month.
The latest to go on the market is a corner conservation shophouse at 11 New Bridge Road, which houses Song Fa Bak Kut Teh’s flagship outlet on the ground floor.
The 99-year leasehold property, located opposite Clarke Quay MRT station, carries a guide price of $16.9 million, said exclusive marketing agent JLL in a statement on Monday.
The four-storey shophouse has dual front- age, as it sits at the junction of New Bridge Road and Upper Circular Road. It takes up an area of 1,452 square feet (sq ft), and has an existing gross floor area (GFA) of 5,324 sq ft.
The site is zoned for commercial use with a plot ratio of 4.2 under the Urban Redevelopment Authority’s Master Plan 2019.
JLL said that as the shophouse is located in a secondary conservation area, a rear extension of up to six storeys may be allowed; this could increase the GFA to 6,098 sq ft, subject to approval from the authorities.
The guide price works out to $3,174 per square foot (psf), based on the existing GFA, and $2,771 psf based on the maximum allowable GFA.
Ong Zhen Hao, director at JLL Capital Markets, said the incoming owner will have the flexibility to maximise the GFA and to explore alternative uses. It could, for example, be a co-working space, a gym or a commercial school, subject to approval from the relevant authorities.
As the property sits on land zoned for commercial use, foreigners are eligible to purchase it, JLL said. It added that there will not be any additional buyer’s stamp duty or seller’s stamp duty imposed.
While the ground floor is anchored by Song Fa, the upper levels are fully leased to office tenants, JLL said. The buyer will thus be able to acquire a shophouse with full occupancy and earn stable rental income, said Mr Ong.
“Furthermore, the property’s land tenure was topped up in 2016, making it comparatively more attractive among other leasehold shophouses for sale in the market,” he added.
The expression of interest exercise for this property closes at 3pm on Dec 22.
Earlier this month, its neighbouring units, conservation shophouses at 13 and 15 New Bridge Road, were launched for sale by sole marketing agent Edmund Tie. The two adjoining leasehold shophouses had an indicative price of $6.2 million each, excluding the premium payable for lease renewal.
These three shophouses along New Bridge Road are just some in a slew of shophouses that have been offered for sale in recent months, following a lull in the market from pandemic-related restrictions
Other areas where shophouses have gone on the market recently include Tras Street, North Bridge Road and Bukit Pasoh.