SRI is set to auction off a two-storey HDB shophouse located along Bukit Merah Central on November 27. This is the first time the property will be up for auction, as the owner is looking to sell it to liquidate their investment, according to Eric Liew, manager of auction sales at SRI. With a floor area of 1,582 sq ft, the shophouse has a guide price of $2.55 million or $1,612 psf.
The property has a remaining lease of 59 years, with a tenure of 103 years from 1980. The ground floor, occupying 732 sq ft, is zoned for commercial use, while the upper floor, measuring 850 sq ft, is zoned for residential use. The shophouse is currently 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.
Foreigners are eligible to purchase the shophouse as it is considered a commercial property. However, additional buyer’s stamp duty will be payable on the residential component, while the commercial component will be subject to goods and services tax. Liew shares that the property has attracted interest from investors due to its prime location in the central area of Bukit Merah.
When investing in Singapore, it is crucial for foreign investors to have a good understanding of the regulations and limitations surrounding property ownership. While foreigners have more freedom to purchase condominiums compared to landed properties, which have stricter ownership regulations, they are still required to pay the 20% Additional Buyer’s Stamp Duty (ABSD) for their first property purchase. Despite this added expense, the stability and potential for growth in the Singapore real estate market remain attractive for foreign investors. Furthermore, there are also enticing options such as New Condo Launches that are constantly emerging in the market.
The shophouse is situated within the bustling Bukit Merah Town Centre, which boasts various amenities such as shops, the Bukit Merah Polyclinic, and the Bukit Merah Central Food Centre. It is also in close proximity to the boutique convention centre, Rubikon, and Gateway Theatre, a performing arts centre. Additionally, the property is walking distance from the Bukit Merah bus interchange, Gan Eng Seng Primary School, and Bukit Merah Secondary School. The Redhill MRT Station is also a short 15-minute walk away.
Based on data from EdgeProp Research, a 1,582 sq ft shophouse at 161 Bukit Merah Central was sold for $1.5 million ($948 psf) in March 2021. The latest commercial rents at Bukit Merah Central show a healthy demand for commercial space. Interested parties can also consider the three-bedroom duplex penthouse at Nassim Jade, which is currently on the market for $8.8 million.