An HDB shophouse along Ang Mo Kio Avenue 4 will be offered in an ERA Realty Network auction on May 28 with a guide price of $2.6 million ($1,429 psf). The two-storey property comprises a 958 sq ft shop unit on the ground floor and an 861 sq ft residential flat on the second floor.
The 85-year leasehold property, whose tenure began in October 1994, has about 60 years left in its lease. The shophouse is located at Block 157, which faces the main road, and is close to Mayflower Market and Food Centre. It will also be about 200 metres away from the upcoming Mayflower MRT Station on the Thomson-East Coast Line.
The 85-year leasehold property, whose tenure began in October 1994, has about 60 years left in its lease
It is uncommon to see an HDB shophouse on the market today as most owners tend to keep the property for their own businesses or as a long-term investment, says Carol Quek, assistant vice-president for auctions and sales at ERA.
“HDB shophouses in mature estates are typically operated by businesses that serve nearby residents when there are no shopping centres in that location,” she adds. “They usually operate their business downstairs, and have their living quarters upstairs. Today, such shophouses are no longer built by HDB in newer residential estates.”
Businesses located around the property include health and fitness shops, local eateries, and beauty parlours. An outlet of a financial institution occupied the commercial space of the property for the past 24 years, she says.
The two-storey property comprises a 958 sq ft shop unit on the ground floor and an 861 sq ft residential flat on the second floor
It is the first time this property is being offered at an auction, and its potential monthly rent ranges from $9,000 to $10,000. The guide price of $2.6 million is “comparable” to recent HDB shophouse transactions in the area, and at the given guide price, the potential rental yield will be “rather decent”, Quek reckons.
This property will be attractive to shophouse investors who are looking for a property as a long-term investment, as well as business owners who would like to operate in a neighbourhood centre, she adds.
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