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

Reinvigorated interest in tourism, given the global pandemic situation, has spurred the sale of two conservation shophouses at 6 and 7 Perak Road in Singapore. As they are zoned for commercial use, no additional buyer’s stamp duty is payable on the purchase of the properties. With an expected guide price of $13 million, this works out to $2,425 psf on the total floor area.

The two-storey shophouses, with mezzanine space and boasting a build-up area of 5,360 sq ft and occupying a land area of approximately 2,870 sq ft, have an 11.4m-wide frontage along Perak Road. Additionally, the properties have approval for usage as a backpackers’ hostel and are a mere three-minute walk from Rochor MRT Station.

Gracelynn Zhu of PropNex Shophouse Elites, which is marketing the property, notes that these well-maintained structures require minimal refurbishments and, being located in the Little India/Jalan Besar area, enjoy strong rental demand.

With the potential to offer a gross rental yield of over 3%, Zhu expects keen interest from investors looking for assets to provide strong rental and capital growth, as well as prospective hostel operators hoping to cash in on the recovery of the tourism sector.

The tender for the property will close on May 8 at 3pm. Vacant possession may be requested, allowing the new owner to decide which type of tenant profile they desire for the property.