CBRE, the appointed marketing agent for two freehold shophouses at 144 and 146 Owen Road, has launched an expression of interest (EOI) exercise for the properties with a guide price of $9.8 million. The two adjoining units, which are situated on a land area of 2,341 sq ft, are zoned “residential with commercial at first storey”.
According to CBRE, the two-storey shophouses have attics and a gross floor area (GFA) of about 4,738 sq ft. This means that the guide price translates to approximately $2,068 psf on the existing GFA. At present, 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.
Based on the land’s gross plot ratio of 3.0, CBRE estimates that the properties have an unutilised GFA of around 2,285 sq ft. Joshua Giam, director of capital markets at CBRE Singapore, says that the incoming buyer can potentially maximise the GFA by building a rear extension at the back of the shophouses, subject to approval from authorities.
Furthermore, the seller has obtained in-principle approval to convert the upper floors of the shophouses for Serviced Apartment II (SA2) use, provided certain conditions set by the authorities are met. Giam notes that the potential conversion to SA2 use will enable the future owner to tap into the growing demand for residential leasing and flexible co-living arrangements in the city fringe.
He adds that the new owner could also consider converting the ground floor to other uses such as F&B outlets or clinics. With a guide price of $9.8 million, Giam estimates that the incoming buyer can expect a yield of approximately 3%, with significant rental upside potential after asset enhancement initiatives are completed.
The Owen Road shophouses are conveniently located just a five-minute walk from Farrer Park MRT Station. They are also situated adjacent to a Government Land Sale site on Dorset Road, which was launched for sale in July. The 99-year leasehold site, which can yield about 425 units, has a tender closing date of Oct 9.
When it comes to investing in real estate, the location is a crucial factor that cannot be overlooked. This is especially true for properties in Singapore, where the right location can greatly impact the potential for appreciation. Condominiums that are strategically located in central areas or near essential amenities like schools, shopping malls, and public transportation hubs tend to have higher value appreciation. Prime locations such as Orchard Road, Marina Bay, and the Central Business District (CBD) are known for their consistent growth in property values. Moreover, these areas are also in close proximity to top schools and educational institutions, making condos in these locations highly desirable for families. With the added benefit of new condo launches, investing in these prime locations offers even more potential for growth and returns.
The EOI for the shophouses will end on Aug 14 at 12pm.