COMMERCIAL PROPERTIES BY ADNIC LEE
Do you know that if you invest in Commercial properties, it has the potential to give you a better yield, capital appreciation and possibly shorter entry and exit period? Furthermore, you will not be subjected to Additional Buyer Stamp Duty (ABSD).
Watch the latest rare and valuable find now - a heritage shophouse that is part of URA's gazetted conservation buildings.
Own a LIMITED ASSET PROPERTY, own a piece of Singapore History.
One type of commercial property that is worth to look out for is Shophouses, a prevalent building type in Singapore’s architectural and built heritage. Apart from using for residential purposes, it is usually converted for office, restaurant/cafe and even hotel use.
Today, there is only a limited number of shophouses remaining and with only approximately 6,500 conserved shophouses, owning one is akin to owning an art piece!
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WHY SHOPHOUSES ARE A GOOD INVESTMENT CHOICE
1. Conservation Status
Many shophouses remaining in Singapore are given conservation status by the URA to preserve its unique and aesthetic built. This allow investors to have a piece of mind as there is an obligation to leave the shophouses untouched even when transformations are planned in the area.
2. Ability To Hold Their Value
The number of shophouses in Singapore are fixed in supply and owning one gives an unquantifiable prestige. This makes shophouses an attractive asset class that will continuously appeal to both local and foreign investors. Hence it can hold its value even during economic downturn.
3. Unique Brand/Business Identity
Many shophouses have a prime location (within CBD), which presents a constant demand from tenants who prefer to locate their businesses in shophouses for its central location and charming characteristics. Shophouses are also often found near MRT stations, which makes commuting easy and efficient.
Over and above this, shophouses itself is a unique structure that allows businesses to have a prominent presence and curate their business branding and awareness.
4. Unique Architectural Built
Through the decades, shophouses in Singapore has been built in 6 distinct styles to reflect the respective architectural trends. Now, they have turned to become popular sites of upscale restaurants and boutique hotels.
5. Flexible Uses For The Space
Shophouses can be used for a wide array of business mix. For example, ground floor is usually occupied by retailers or restaurants while the upper floors can be used as an office, a retail shop and/or a barber shop. In recent years, we even see boutique hotels, hostels and even co-living spaces within shophouses.
6. Foreigner Eligible To Own Scarce Land In Prime Locations
Foreigners are eligible to buy commercial-zoned shophouses (property asset with land title), and they are not required to get special approval from local government authorities, as well as not subjected to Additional Buyer Stamp Duty (ABSD).
There are a handful of foreigner buyers buying shophouse as a collector item, with some viewing it as a "unique art piece with a rental yield". This is because they are owning a piece of Singapore scarce land and heritage.
7. Small Land, Small Space?
Shophouses may have a smaller land footprint (typically 1,200 sqft to 2,000 sqft), but the built-up area is much larger with 3 storeys having a built-up area typically between 3,000 sqft to 8,000 sqft.
SHOPHOUSE PRICE TREND OVER THE LAST 20 YEARS
*Price Trend for Tanjong Pagar Conservation Area
Over the last 2 decades, the prices for shophouses have seen a steady increase in price. In 2000, the average price of Shophouse was standing at $377 PSF. Now 2020, the price have appreciated to an average of $6,756 PSF. This is a whopping 16.9 times increase in its average price! Coupled with the scarcity of shophouses and land in Singapore, can you imagine the potential for the price appreciation?
Another type of commercial property worth investing in is office, and they are usually classified into 3 grades: Grade A, Grade B and Grade C office spaces.
In Singapore, apart from having multiple MNCs setting up their Headquarters here, the robust local entrepreneurial scene has also greatly contributed to the demand for quality office spaces. Singapore's consistent status as a global business hub will continually have a strong appeal to investors towards office spaces as it presents promising rental and capital gains.
IS SHOPHOUSE REALLY A GOOD INVESTMENT CHOICE FOR YOU?
WHETHER YOU ARE A SEASONED INVESTOR OR 1ST TIME BUYER:
WE ARE HERE TO PROVIDE HANDS-ON SERVICE APPROACH TO HELP YOU ACHIEVE YOUR INVESTMENT GOALS.
What we can provide:
1. 3-Step Approach & Analysis: Filter and determine WORTH-TO-INVEST & right property for you.
2. Top 3 questions you need to ask when investing in property.
3. Insights and results from actual property cases.
4. Pitfalls to avoid when selecting your next investment property.
5. Property investment “roadmap” customised to your investment risk appetite in planned phases.
6. One-Stop Real Estate Advisory Services:
- Property Portfolio Management - purchase, renting out of premise, divestment of property portfolio.
7. Linking you to the right professionals: Architect, lawyers, investment and commercial bankers.
8. After-sales service: Free 2D/3D plan proposal for your property.
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