Public tender is being held to sell a freehold shophouse located at 255 Jalan Besar at a price guide of $22million. The three-storey building occupies an area of 3,145 sq ft, with a GFA of approximately 7,750 sq. ft.
The property is located in the Jalan besar Secondary Conservation Area and has a gross plot-ratio of 3.0 according to the Master Plan 2019.
It has an untapped GFA (gross floor area) of approximately 1,685 square feet.
The shophouse guide price is $2,838 per square foot based on GFA or $2,331 per square foot based upon the maximum floor area of 9 435 sq ft.
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Michael Tay is the head of CBRE’s capital markets in Singapore. He says that given the unique attributes, such as the freehold tenure, large frontage and potential for signage and naming rights, both investors and owners-occupants are expected to show a lot of interest.
In the last 12 months, he says that the demand for shophouses on the edge of the city has increased. Notable sales include the sale of 203 and 209 Jalan Besar earlier this month, for $38.5m. 301 Jalan Besar sold in May for $26m.
Joshua Giam of CBRE’s associate director for capital markets in Singapore highlights the fact that the new owner could maximise the plot ratio through a rear extension, or by enlarging their current floor plan. The shophouse can be used for F&B, clinics and serviced apartments. Giam says that “these initiatives will allow the owner to maximize rental returns and the capital value of the building.”
The bid for 255 Jalan Besar closes on November 30 at 12pm.