A freehold four-storey shophouse located along Outram Road is up for sale via an expression of interest (EOI), according to exclusive marketing agent CBRE. The property has a guide price of $12 million, or about $2,600 psf, based on an estimated gross floor area of over 4,600 sq ft.
The shophouse at 257 Outram Road sits on a freehold site area of 1,531 sq ft. The existing owner had purchased the property in 2019 for $6.6 million, based on caveats lodged with URA Realis.
After extensive renovations in 2021, the first level of the shophouse has been leased to a pet care service provider, while the second to fourth levels are occupied by co-living operator The Assembly Place.
Based on the asking price of 12 million, buyers are looking at a gross rental yield of about 3.5%, compared to an average yield of about 2.5% for most other freehold shophouses, estimates Joshua Giam, associate director of capital markets at CBRE Singapore and marketing agent for the property.
According to Giam, the property will likely appeal to both owner-occupiers and investors seeking stable rental income and future capital growth. Over the medium- to long-term, the new owner could explore other value-added options, such as converting the shophouse for alternative use as a hotel, hostel or serviced apartments, subject to approval from relevant authorities.
Source: EdgeProp Landlens
The shophouse is located within the city fringe and just across the road from the Tiong Bahru Conservation Area, where the shophouses feature interesting restaurants and cafes such as Glass Roasters, Dirty Supper and Tartines, as well as other F&B and retail options at Tiong Bahru Market and Food Centre.
The shophouse at 257 Outram Road is also within walking distance from the Havelock MRT Station on the Thomson-East Coast Line and a nine-minute drive from the CBD.
“Due to the accessibility and the wide range of amenities the area has to offer, the Tiong Bahru enclave has always been a popular place of residence among the young professionals and expatriates,” says CBRE’s Giam.
The latest transaction in the area was for the shophouse at 283 Outram Road that changed hands for $9 million in March 2023, based on caveats lodged.
The EOI exercise is expected to close on April 16.
