A two-storey conserved shophouse will be up for auction with a primary bid of S$8 million.
Situated at 65 Neil Road within the Conservation Area of Chinatown-Tanjong Pagar, this property has a gross floor area of around 2,834 square feet which translates to S$2,800 psf.
Moreover, this conserved shophouse sits on a 1,434 sq. ft. lot.
This shophouse’s ground floor is currently occupied by an entertainment establishment on a lease basis.
The second floor, however, is leased to another tenant with a lease contract of up to the end of 2019.
Steven Tan, the Capital Markets and Investment Service’s Director of Colliers International, said that the second floor could be utilized as a clinic, restaurant, commercial school, night club, and so on, which would be subject to the Urban Redevelopment Authority’s approval.
He also insinuated that the owner of the shophouse had already consulted with an architect to look into any potential alteration and addition that could further expand the gross floor area of the property to 602.5 square feet.
This would potentially bring the overall price down to S$2,500 psf. It needs to be mention that this Neil Road shophouse comes with a 99-year leasehold tenure that has been effective since the 4th of July 1989.
The auctioning of this shophouse basically presents a very rare investment opportunity for investors who have a great interest in these segments of the real estate.
Moreover, investors who are looking for alternative investments, in view of the property cooling measures, can surely divert their attention to shophouse markets and strata office that are not burdened with sales restrictions and encumbrances.
On September 30th, at 2:30 pm, this property will be up for auction, together with a bungalow located at 7 Chestnut Crescent, Bukit Panjang, according to Colliers International.
The auction will be held at the Connection Room, Level 3, Amara Singapore.