Real estate agency Huttons has listed an HDB shophouse at Blk 138 Teck Whye Lane up for sale.
With 61 years left on its lease, the property currently demands a price of S$4.45 million as part of an Expression of Interest (EOI) exercise.
The shophouse includes a kopitiam or coffee shop selling food and drinks with an area of 68 square metres.
Huttons Asia claimed that the property has high human traffic and is heavily sought after due to its high rental yield.
In a press release today (28 Nov), Huttons Asia announced the sale of an HDB shophouse at Blk 138 Tech Whye Lane.
There will first be an EOI exercise, at a guide price of S$4.45 million.
According to Huttons Asia, HDB had approved the commercial shop to operate as a family restaurant. The premises, which come equipped with an exhaust and roller shutters, are currently being utilised as a kopitiam with several food and drink options.
Image courtesy of Huttons Asia
While its area measures 68 square metres, this doesn’t include the Outdoor Refreshment Area (ORA).
The shop has a 93-year lease from 1992, which means that it has about 61 years remaining.
A Huttons Asia executive stated that the property has exceptional human traffic due to its proximity to many HDB flats as well as the Choa Chu Kang Community Centre and Polyclinic. With its existing tenancy, it has a high rental yield of 4.5 to 5%.
The high guide price is also due to the apparently “very high demand” for HDB shops with F&B approval.
Source: Huttons Asia via Commercial Guru
The property is currently tenanted until 31 Aug 2024, according to the listing on Commercial Guru.
The Senior Marketing Director of Huttons Asia also shared that the absolute price amount of the property was “much smaller” than other F&B commercial properties.
Thus, it was appealing to business owners and investors alike, with good entry price and rental returns.
“Rents for F&B shops have increased tremendously after [Covid-19],” he stated.
“We are seeing a demand from tenants looking to buy such properties for their own use instead of renting.”
Another executive highlighted that the shophouse had no living quarters. Additionally, buyers won’t need to worry about Additional Buyer’s Stamp Duty (ABSD) or GST.
The Expression of Interest will close at 4pm on 8 Dec.
Last year, a shophouse in Farrer Park sold for S$8 million.
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Featured image courtesy of Huttons Asia and adapted from Google Maps.
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