Two freehold shophouses at 144 and 146 Owen Road are up for sale via an expression of interest (EOI) exercise with a guide price of $9.8 million. The adjoining units occupy a land area of 2,341 sq ft zoned “residential with commercial at first storey”.
The two-storey shophouses come with attics and have a gross floor area (GFA) of about 4,738 sq ft, which means the guide price works out to about $2,068 psf on the existing GFA. Currently, a gym occupies the ground floor of 146 Owen Road, 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, the properties have an unutilised GFA of around 2,285 sq ft, says CBRE, the appointed marketing agent for the shophouses. Subject to approval from authorities, the incoming buyer may explore maximising GFA by building a rear extension at the back of shophouses, adds Joshua Giam, director of capital markets at CBRE Singapore.
Additionally, 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 conditions set out by the authorities. Giam observes that the potential conversion to SA2 use will allow the future owner to tap on the increasing demand for residential leasing and flexible co-living arrangements in the city fringe.
The future owner could also explore converting the ground floor to other uses, such as F&B and clinics, he says. “At the guide price of $9.8 million, incoming buyers can expect a yield of approximately 3% with huge rental upside potential after asset enhancement initiatives are completed,” Giam estimates.
The Owen Road shophouses are adjacent to a Government Land Sale site on Dorset Road, shown in blue (Picture: EdgeProp Landlens)
The properties are a five-minute walk away from Farrer Park MRT Station. They are also adjacent to a Government Land Sale site on Dorset Road that was launched for sale last month. The tender for the 99-year leasehold site, which can yield about 425 units, will close on Oct 9.
The EOI for the shophouses will close on Aug 14 at 12pm.
