Property Owner Makes 86% Profit From Reselling Farrer Park Shophouse
One way to enjoy a windfall without striking big in the lottery is by investing in property, and then selling it at a profit.
Lately, there’s been a lot of news about various properties around Singapore going for exorbitant prices.
30-Year-Old Yishun Jumbo Flat Sold For Over $1M, Sale Apparently An Outlier
A similar sale has occurred once again, this time with the owners making a significant profit in a short amount of time.
They had purchased a shophouse in Farrer Park before managing to sell it for S$8 million just five months after the previous transaction.
The initial price of the property was S$4.3 million, netting the previous owners a S$3.7 million profit.
Farrer Park shophouse changes hands for S$8 million
According to a report by EdgeProp, the shophouse is located at 147 Kitchener Road, off Jalan Besar.
A company by the name of Pack Wan, which was launched on 14 Aug 2021, purchased it for S$4.3 million in January this year.
Source: Google Maps
The company’s shareholders are Aaron Wan, a senior group district director at real estate agency PropNex, and his wife.
Sitting on a freehold site of 1,440 square feet, the shophouse was built in the 1920s. It is part of the Decker Road Conservation Area, with a spiral staircase linking the first level to an open roof terrace.
Source: EdgeProp
The new owner of the shophouse is the cultural organisation Eng Teng Association. A caveat lodged on 1 Jul shows that it changed hands for S$8 million.
Coincidentally, Wan reportedly said he would only consider selling it if he received “an offer of around S$8 million” as he and his wife had wanted to keep it as a long-term investment.
After purchasing the property in Aug 2021, they spent the next five months renovating the building.
The S$3.7 million profit from the sale translates into a capital gain of 86%.
New owners sold previous properties for S$33 million
Eng Teng Association previously had its headquarters at Neil Road. It owned three conservation shophouses at 128, 130 and 132 Neil Road.
EdgeProp reports that the association sold all three units for a total of S$33 million, giving them more than enough to afford the Farrer Park property.
Currently, the F&B tenant on the first level of the Kitchener Road shophouse is steamboat restaurant San Laksa. The second floor is an office space.
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Featured image adapted from Google Maps.
