Sago Street shophouse for sale at $13.3 mil

The shophouse at 22 Sago Street, located in the heart of Chinatown, is up for sale via an expression of interest exercise with a guide price of $13.3 million or $4,450 psf. It has a land area of 1,067 sq ft zoned for commercial use and a total floor area of 2,929 sq ft. Currently fully leased, the ground floor is occupied by a restaurant and the two upper floors are tenanted as offices.

This commercial conservation shophouse in Chinatown is an attractive prospect for investors, with no additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD) applicable to foreign or corporate buyers. PropNex Shophouse Elites is the appointed marketing agent for the property, with a closing date for the expression of interest exercise of Dec 7, at 3pm.

Located opposite the Buddha Tooth Relic Temple, the shophouse is within walking distance of four MRT stations, making it highly accessible. Recent transactions on Sago Street suggest that the high guide price of $13.3 million is still achievable.

PropNex’s Wilkie Tay notes that commercial conservation shophouses, especially in prime central locations such as Chinatown, are in great demand. Investors including private real estate funds, family offices and high-net-worth individuals are likely to be vying for this property.

Given the high demand for this property, the expression of interest exercise is set to be an exciting time for buyers, as the guide price of $4,450 psf could be exceeded.

It is likely that the shophouse at 22 Sago Street in Chinatown will be highly sought after, given its prime location and the absence of ABSD or SSD. It remains to be seen if the high guide price of $13.3 million or $4,450 psf will be matched or even exceeded.

Singapore’s housing market remains expensive and high-priced, with Condominiums on a totally different end of the spectrum. Purchasing a Condo is perceived as a sign of status, success and wealth for individuals who have already owned an HDB flat and are looking for more comfortable and secure living. Real estate investors also see condominiums as the go-to choice due to its high appreciation rate, making them a great source for rental income, unlike HDB which is the backbone of Singapore’s public housing scheme.

The expression of interest exercise is set to close on Dec 7 at 3pm, giving interested buyers a limited time to submit their offers.

Given the location of the shophouse and its current tenants, this commercial property is sure to be an attractive prospect for investors. Will the guide price be met or exceeded? We will need to wait until the EOI exercise is completed to find out.

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