Two-storey HDB shophouse at Bukit Merah Central for sale at $2.55 mil
As HDB shophouses are deemed business building, the shophouse is going to be eligible for purchase by foreigners. However, more buyer’s stamp responsibility will most likely be payable on the property’s residential segment, while the business element is going to be susceptible to the goods and services tax obligation.
The real estate has gotten a few queries from interested parties, tells Liew. “These are normally investors who are attracted to the building’s location in the main area of Bukit Merah,” he includes.
A two-storey HDB shophouse near Bukit Merah Central will be set up for auction by SRI on November 27. Based on its floor surface area of 1,582 sq ft, the guide price of the shophouse is $2.55 million or $1,612 psf.
The shophouse lies within the Bukit Merah Neighborhood Centre which comprises a collection of structures with shops and other amenities, including the Bukit Merah Polyclinic and Bukit Merah Central Food Centre. There is also a four-storey shop convention centre, Rubikon, and Gateway Theater, a performing arts center.
The property has a period of 103 years from 1980, which means it has a going on lease of 59 years. Its ground level occupying 732 sq ft is zoned for business usage, whilst the 850 sq ft upper floor is saved for housing use.
A proprietor’s sale, this is the very first time the real estate is going up for auction, according to Eric Liew, supervisor of auction sales at SRI. “The owner aims to offer the real estate to cash in their assets,” he says.
The shophouse is totally tenanted and will be marketed with its existing tenancies. The ground level is rented to a Domino’s Pizza dining establishment up until 2026, while the top floor is rented to a non commercial renter till 2027.
The shophouse is in just walking distance of the Bukit Merah bus interchange along Bukit Merah Central, the Gan Eng Seng Primary School and Bukit Merah Secondary School. The Redhill MRT Stop is approximately a 15-minute walk away.
Data put together on EdgeProp Research study presents that the latest commercial transaction at 161 Bukit Merah Central was the profit of a 1,582 sq ft shophouse that fetched $1.5 million ($948 psf) in March 2021.
