The manual price of $9.8 million to the shophouses at 13, 14 Bali Lane works out about $3,797 psf (per square foot).
Speaking to The Business Times on Wednesday, PropNex Realty’s associate manager Loyalle Chin said 13,14 Bali Lane is selling at such a”huge discount” because”the proprietor wants to cash out fast”, to redeploy capital for personal, non-commercial use.
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It’s zoned”commercial”, and inside a three-minute walk to Bugis MRT interchange on the East-West and Downtown lines. Currently partially tenanted, it’s suitable for investment, own retail or office usage, PropNex said.
New commercial developments in the area include the 770,000 sq feet, 30-storey Grade A office tower at Guoco Midtown, as well as the newest Shaw Towers development.
Added Mr Chin:”Bugis is becoming increasingly attractive to a growing pool of multinational companies based in Grade A office improvements DUO Tower, Bugis Junction Towers and also the coming Guoco Midtown… as well as to the millennials who appreciate the diversity in Bali Lane and Haji Lane stuffed with live local music, java places and attractive F&B (food and beverage) establishments.
“It has become a’hip, culturally-rich and vibrant commercial district’.”
Separately, the 4.9 million manual cost for 42 Duxton Road translates to about $2,408 psf of flooring area, PropNex said.
In the area, 37 Duxton Road was transacted earlier in January this year at $5.65 million, or $2,897 psf.
It has a land size of 1,118 sq feet, with a total floor area of about 2,035 sq ft.
With retail to the first storey and office on the next, the Duxton shophouse is tenanted into Kokuyo, a furniture and space layout company with global offices in China, Thailand, Hong Kong, Malaysia and Singapore. The company has occupied the premises since 2011, and is seeking to stay, BT understands.
According to PropNex, the monthly rental of $13,500 signifies a rental return of 3.3 percent. Said Mr Chin:”With rental yields generally compressed between 1.8 percent and 2.5 percent, this is certainly one of the greatest rental returns for a shophouse from the central business district (CBD).”
Duxton is surrounded by three MRT stations nearby, such as Outram Park interchange, Tanjong Pagar MRT, and also the approaching Maxwell MRT station, slated to start by 2021.
In a statement on Wednesday, PropNex added that Singapore’s real estate today supplies the ideal investment prospects at the Asia-Pacific for 2020, after a report from the Urban Land Institute and PwC.
Said Mr Chin:”With the influx of ultra high net-worth individuals and institutional capital from Hong Kong and mainland Chinese, our market forecast for heritage shophouses and commercial assets from town fringe region such as District 1 (CBD) and District 7 (Bugis) will continue to grow by at least 5-10 percent for the subsequent 12 months”