Sale of a freehold shophouse located on Jalan Besar, starting at $22 mill
A freehold shophouse at 255 Jalan Besar will be sold by public tender for a guide value of $22,000,000. The three story property is located on a 3,145 sq.ft. site and has an approximate 7,750 sq.ft. gross floor space (GFA).
The bids for 255 Jalan Besar are due to close at 12 noon on 30 November.
Michael Tay (CBRE’s Singapore head of capital market) says that “given the exceptional characteristics such as freehold, wide frontage potential, and naming and sign rights”, we expect a strong interest from both investor and owner-occupiers.
He says the demand for city fringe shophouses has increased in the past twelve months. Notable transactions this month include 203-207 Jalan Besar, which changed hands for $38.5 Million. In May, 301 Jalan Besar went for $26 Million.
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The property is situated in the Jalan Besar Secondary Conservation zone and is zoned to commercial use. It has a gross ratio of plots of 3.0 as per the Master Plan 2019.
This property has a GFA of around 1,685sqft that is not being used.
The guide price for this shophouse comes out to $2.838 psf on the basis of GFA. This is equivalent to $2.331 psf on the basis of maximum allowable flooring area which is 9.435 sq.ft.
Joshua Giam is associate director, capital markets, Singapore for CBRE. He says that the owner of the property can increase the plot’s ratio by either building a back extension or expanding the floor plan.
The shophouse could, depending on the approval received from authorities, be converted to F&B, clinics serviced apartments, cooperative living and hostels. Giam says “These measures will enable the new owner maximise capital value as well as rental returns on the property”.