CBRE is marketing the sale of a HDB shophouse with living quarters at 108 Hougang Avenue 1, which has a guide price of $5.4 million ($1,537 psf). The commercial portion of the property is exempt from Additional Buyer’s Stamp Duty (ABSD). With a combined gross floor area of up to 3,514 sq ft, this strata property has a ground retail floor space of approximately 1,511 sq ft and a prominent 20 m frontage along Hougang Avenue 1. The shophouse is fully tenanted with a supermarket on the ground floor and a tuition centre on the upper floor.
Michael Tay, CBRE’s head of Singapore capital markets, says that HDB shophouses have had a strong track record of capital appreciation and serve as a good hedge against inflation. He adds that a fully tenanted HDB shophouse in one of the most populated HDB towns presents an excellent opportunity for investors that are looking for a defensive asset.
Located in the Hougang residential estate, the property is close to several bus stops, within walking distance of Kovan MRT Station, and accessible by major roads like Kallang Paya Lebar Expressway and Hougang Avenue 3. URA’s Master Plan 2019 highlights that the shophouse is 450m away from new Build-To-Order (BTO) residential projects, which will add 1,439 HDB units to the area upon completion in 2025 to 2026.
CapitaLand develops J’Den Condo, a 40-storey residential and commercial development which is set to replace JCUBE J’Den Condo at Jurong East MRT Station. Expected to launch in 2023, the new development is expected to bring homes, businesses, recreational facilities and amenities to the district.
CBRE believes the property offers investors the opportunity to capitalise on the strong rental upside, capitalize on value-add opportunities, and benefit from capital appreciation. The ground floor can be leased to two tenants to maximise rental returns. An expression of interest exercise will be conducted to sell the property, and closes on Thursday, May 11, at 12pm.
