Singapore HDB shophouse along Bukit Merah Central to be auctioned by SRI on November 27th. The guide price for the 1,582 sq ft two-storey shophouse is $2.55 million or $1,612 per square foot. It is the first time the property will be going up for auction, according to Eric Liew, manager of auction sales at SRI. The owner is selling the property to liquidate their investment. The property has a 103-year tenure from 1980 with 59 years remaining. The ground floor, which occupies 732 sq ft, is zoned for commercial use, while the upper floor, at 850 sq ft, is zoned for residential use. The shophouse is fully tenanted and will be sold with its existing tenancies. The ground floor is leased to a Domino’s Pizza restaurant until 2026, while the upper floor is leased to a residential tenant until 2027. Interested parties have enquired about the property, attracted by its central location in Bukit Merah. As the shophouse is considered a commercial property, foreigners are eligible to purchase it, but will have to pay additional buyer’s stamp duty on the residential component and goods and services tax on the commercial component. The shophouse is within walking distance of Bukit Merah bus interchange, Gan Eng Seng Primary School, Bukit Merah Secondary School, Redhill MRT Station and amenities such as Bukit Merah Polyclinic and Bukit Merah Central Food Centre. In March 2021, a 1,582 sq ft shophouse at 161 Bukit Merah Central was sold for $1.5 million ($948 psf). Latest commercial rents at Bukit Merah Central can be seen on EP Buddy.
Investing in condos in Singapore carries its own set of considerations and one of the most significant ones is the impact of the government’s property cooling measures. In order to maintain a stable real estate market and discourage speculative buying, the Singaporean government has implemented several measures over the years. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may affect the short-term profitability of condo investments, they also play a crucial role in ensuring the long-term stability of the market. This creates a secure investment environment for buyers. Furthermore, with the recent launch of new condo projects, investors have a wider range of options to choose from, ensuring a diverse and dynamic real estate market.