Two-storey HDB shophouse at Bukit Merah Central for sale at $2.55 mil
A two-storey HDB shophouse along Bukit Merah Central is going to be raised for public auction by SRI on November 27. Based upon its floor surface area of 1,582 sq ft, the overview price of the shophouse is $2.55 million or $1,612 psf.
As HDB shophouses are considered commercial property, the shophouse will be qualified for acquisition by foreigners. However, increased purchaser’s stamp duty will most likely be payable on the property’s non commercial segment, while the commercial component will be subject to the goods and services taxation.
A proprietor’s sale, this is the very first time the real estate is going up for auction sale, according to Eric Liew, supervisor of auction sales at SRI. “The owner intends to market the real estate to liquidate their investment,” he mentions.
The shophouse is completely tenanted and will be marketed with its presenting tenancies. The ground level is leased to a Domino’s Pizza bistro up until 2026, whilst the upper ground is rented to a residential tenant up until 2027.
The property has a term of 103 years from 1980, that suggests it has a standing lease of 59 years. Its ground level taking up 732 sq ft is zoned for retail usage, while the 850 sq ft higher ground is alloted for non commercial usage.
The real estate has received a number of queries from potential parties, says Liew. “These are usually capitalists who are attracted to the building’s site in the central area of Bukit Merah,” he adds.
Data collected on EdgeProp Study shows that the most recent commercial purchase at 161 Bukit Merah Central was the profit of a 1,582 sq ft shophouse that yielded $1.5 million ($948 psf) in March 2021.
The shophouse rises inside the Bukit Merah Town Centre that makes up a cluster of buildings with stores and other facilities, featuring the Bukit Merah Polyclinic and Bukit Merah Central Food Centre. There is even a four-storey shop convention hub, Rubikon, and Gateway Theatre, a performing arts facility.
The shophouse is in just walking range of the Bukit Merah bus interchange along Bukit Merah Central, the Gan Eng Seng Primary School and Bukit Merah Secondary School. The Redhill MRT Terminal is about a 15-minute walk away.
