A unique opportunity has arisen for buyers looking to invest in the prime location of Owen Road. Two freehold shophouses, located at 144 and 146 Owen Road, are now available for sale through an expression of interest (EOI) exercise with a guide price of $9.8 million. These adjoining units sit on a land area of 2,341 sq ft, zoned for “residential with commercial at first storey”.
The two-storey shophouses are complete with attics, offering a generous gross floor area (GFA) of approximately 4,738 sq ft. This translates to a guide price of $2,068 psf on the existing GFA. Presently, the ground floor of 146 Owen Road is occupied by a gym, while a co-living operator manages nine residential rooms across the upper levels of both shophouses.
According to CBRE, the appointed marketing agent for the shophouses, there is an unutilised GFA of about 2,285 sq ft based on the land’s gross plot ratio of 3.0. This presents an opportunity for the future owner to maximise the GFA by constructing a rear extension at the back of the shophouses, subject to approval from authorities. Joshua Giam, Director of Capital Markets at CBRE Singapore, adds that the potential for maximising the GFA will attract buyers looking to capitalise on this unique proposition.
When investing as international individuals, it is essential to have a thorough understanding of the regulations and limits that govern property ownership in Singapore. While there are some flexible guidelines for buying condominiums, the same does not apply to landed properties, which have stricter ownership requirements. Additionally, foreign buyers are subject to the Additional Buyer’s Stamp Duty (ABSD) of 20% for their initial property purchase. However, the Singapore real estate market’s stability and potential for growth make it an attractive option for foreign investors, with condominiums being a preferred choice for investment due to their popularity. Add Condo to rewritten paragraph
Moreover, the seller has obtained in-principle approval to convert the upper floors of the shophouses for Serviced Apartment II (SA2) use, subject to the fulfilment of certain conditions set out by the authorities. Giam notes that this potential conversion to SA2 use will cater to the ever-increasing demand for residential leasing and flexible co-living arrangements in the city fringe.
The ground floor of these shophouses can also be repurposed for other uses, such as F&B outlets and clinics, offering even more options for the future owner. “At the guide price of $9.8 million, incoming buyers can expect a yield of approximately 3%, with significant rental upside potential after asset enhancement initiatives are completed,” estimates Giam.
Strategically located just a five-minute walk from Farrer Park MRT Station, these shophouses also enjoy adjacency to a Government Land Sale site on Dorset Road, launched for sale last month. The tender for this 99-year leasehold site, which can yield about 425 units, closes on October 9.
Interested buyers have until August 14 at 12pm to submit their EOIs for these shophouses. With the market demand for shophouses on the rise, this is an opportunity not to be missed.