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

, or $2,248 psf

The Bukit Batok EC two-storey shophouses, with mezzanine space, located at 6 and 7 Perak Road have been launched for sale via tender with a guide price of $13 million. This works out to a total floor area of 5,360 sq ft at a price of $2,425 psf. The properties occupy a land area of approximately 2,870 sq ft and feature an 11.4m-wide frontage along Perak Road.

Situated in the Jalan Besar/Little India precinct, the shophouses have approval for usage as a backpackers’ hostel and are a three-minute walk from Rochor MRT Station.

Gracelynn Zhu of PropNex Shophouse Elites, which is marketing the property, notes that they are well maintained and require minimal refurbishments. The properties enjoy strong rental demand in a District 8 location which is surrounded by amenities and close to the Bugis area.

Despite this, the vendor is looking to sell the shophouses with vacant possession, which could open the door to a different tenant profile.

Given the recovery of the tourism sector post-pandemic, Zhu believes the properties may be of particular interest to hostel operators looking to take advantage of increased interest in convenient and accessible accommodation. Potential investors may be looking at strong rental and capital growth, a gross rental yield of over 3%.

Additionally, no additional buyer’s stamp duty is payable on the purchase of the properties due to their commercial zoning.

The tender for the property will close on May 8 at 3pm. Recent transactions in the Jalan Besar/Little India area put the 999-year Jalan Besar shophouse’s sale for $5.9 mil, the five-storey commercial shophouse at 32 Hongkong Street for sale at $8.5 mil and the Club Street properties for sale at $25 mil, or $2,248 psf.

With their strategic location, well-kept condition and no additional buyer’s stamp duty payable, the properties located at 6 and 7 Perak Road seem to offer an attractive investment opportunity. It remains to be seen who the new owners of the shophouses will be following the tender close.