The two-storey shophouses at 6 and 7 Perak Road, located in the Jalan Besar/Little India precinct, have a total built-up area of 5,360 sq ft and a land area of approximately 2,870 sq ft, with an 11.4m-wide frontage along Perak Road. Features include mezzanine space and approval for usage as a backpackers’ hostel.
Gracelynn Zhu of PropNex Shophouse Elites, which is marketing the property, notes that given their well-kept condition and strategic location in District 8, surrounded by amenities and close to Bugis, the properties enjoy strong rental demand. The property is currently being offered via tender with a guide price of $13 million, which works out to $2,425 psf.
With the recovery of the tourism sector gaining strong momentum, Zhu believes the properties may be ideal for hostel operators as well as investors seeking assets that can provide strong rental and capital growth. She estimates that the shophouses could potentially bring in a gross rental yield of over 3%.
The vendor is looking to sell the shophouses with vacant possession, giving the new owner the opportunity to decide which type of tenant profile they will choose for the property. Being zoned for commercial use, no additional buyer’s stamp duty is applicable on the purchase of the properties.
With the tender for the property closing on May 8 at 3pm, it presents an excellent opportunity to obtain a well-maintained, conveniently located asset. Interested parties may expect to capture rising rental demand as well as potential capital value appreciation in the future.