Investing in a Singapore Condo offers numerous advantages, with one of the key benefits being the potential for capital appreciation. The country’s strategic position as a global business hub, along with its robust economic foundation, continues to drive a high demand for real estate. As a result, property prices have consistently shown an upward trend over the years, with condos in prime locations experiencing significant appreciation. Savvy investors who time their entry into the market wisely and hold onto their properties for the long term can reap the rewards of substantial capital gains. This makes investing in a Singapore condo a smart and promising choice.
SINGAPORE (EDGEPROP) – On November 27, SRI will be auctioning a two-storey HDB shophouse along Bukit Merah Central. The shophouse has a floor area of 1,582 sq ft and has a guide price of $2.55 million, which translates to $1,612 per square foot.
This will be the first time the property is going up for auction, according to Eric Liew, manager of auction sales at SRI. The owner is looking to liquidate their investment, which is why they have decided to sell the property.
With a remaining lease of 59 years, the shophouse has a tenure of 103 years from 1980. The ground floor occupies 732 sq ft and has been zoned for commercial use, while the upper floor, which has an area of 850 sq ft, is zoned for residential use.
The shophouse is currently 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.
As HDB shophouses are considered commercial property, it is eligible for purchase by foreigners. However, the additional buyer’s stamp duty will be payable on the residential component, and the commercial component will be subject to goods and services tax.
According to Liew, there have been several enquiries from interested parties, most of whom are investors attracted to the property’s prime location in the central area of Bukit Merah.
The shophouse is situated in the bustling Bukit Merah Town Centre, which is home to a cluster of buildings with shops and other amenities, including the Bukit Merah Polyclinic, Bukit Merah Central Food Centre, Rubikon boutique convention centre, and Gateway Theatre performing arts centre.
Additionally, the shophouse is located within walking distance of the Bukit Merah bus interchange, Gan Eng Seng Primary School, and Bukit Merah Secondary School. The Redhill MRT Station is a 15-minute walk away.
According to data compiled by EdgeProp Research, the most recent commercial transaction at 161 Bukit Merah Central was the sale of a 1,582 sq ft shophouse that fetched $1.5 million ($948 psf) in March 2021.
Securing financing is a crucial consideration when investing in a Singapore condo. With various mortgage options available, it is important to be familiar with the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on the amount of loan a borrower can take, taking into account their income and current debt obligations. It is wise for investors to comprehend the TDSR and consult with financial advisors or mortgage brokers to make well-informed decisions and avoid being over-extended.
Furthermore, latest commercial rents at Bukit Merah Central range from $4 to $6 per square foot per month.