Two shophouses at Perak Road up for sale at $13 mil

Two rare conservation shophouses situated on Perak Road, which are located in the Jalan Besar/Little India enclave and boast a built-up area of 5,360 sq ft, are being launched for sale via tender with a guide price of $13 million. The properties occupy a land area of approximately 2,870 sq ft, with an 11.4m-wide frontage along Perak Road.

PropNex Shophouse Elites – division of PropNex Realty – is marketing the property and explains that the current owner has been receiving “multiple offers” from prospective tenants for commercial usage. The current zoning for this property is for commercial use, which could potentially bring in a gross rental yield of over 3%.

Given these properties’ well-kept condition, strategic location and proximity to the Bugis area, Gracelynn Zhu from PropNex Shophouse Elites believes these assets may be ideal for hostel operators tapping renewed interest for convenient and accessible accommodation post-pandemic.

Moreover, the tender will close at 3pm on 8 May, whereby no additional buyer’s stamp duty is payable on the purchase of the properties.

Zhu notes, “the new owner will be able to decide which type of tenant profile they desire for the property, as the vendor is looking to sell the shophouses with vacant possession.” The properties also require minimal refurbishments.

It is also just a three-minute walk to Rochor MRT Station, making the two shophouses highly attractive to investors who seek assets that can provide strong rental and capital growth.

This reflects in recent transactions of properties on Perak Road, as seen in EdgeProp Research Tool.

Therefore, the two conservation shophouses at 6 and 7 Perak Road offer a combination of value, good potential rental yield and capital appreciation.