The two-storey shophouses at 6 and 7 Perak Road have been launched for sale via tender with a guide price of $13 million. This works out to approximately $2,425 per sq ft on their total floor area of 5,360 sq ft and they are zoned for commercial use. Located in the Jalan Besar/Little India precinct, they are a three-minute walk to Rochor MRT Station and have approval for usage as a backpackers’ hostel.
These well-maintained properties occupy a land area of approximately 2,870 sq ft, with an 11.4m-wide frontage along Perak Road. According to Gracelynn Zhu of PropNex Shophouse Elites, which is marketing the property, the properties enjoy strong rental demand and the vendor is looking to sell the shophouses with vacant possession.
Given their strategic location in District 8, surrounded by amenities, and close to the Bugis area, Zhu believes the properties may be ideal for hostel operators looking to tap renewed interest for convenient and accessible accommodation. As no additional buyer’s stamp duty is payable on the purchase of the properties, Zhu estimates that the shophouses could potentially bring in a gross rental yield of over 3% for the future buyer.
The tender for the property will close on May 8 at 3pm. With a guide price of $13 million, it works out to $2,425 per sq ft on the total floor area. Those looking to invest in the properties can anticipate strong rental and capital growth, and potentially make a gross rental yield of over 3%.
With the recovery of the tourism sector gaining strong momentum post-pandemic, Zhu expects keen interest from investors seeking assets that can provide strong rental and capital growth. The well-kept condition and location of the shophouses in the Jalan Besar/Little India precinct means they could be ideal for hostel operators looking to tap renewed interest for convenient and accessible accommodation among incoming tourists and travellers.
Overall, the two-storey shophouses with mezzanine space at 6 and 7 Perak Road are well-positioned for profitable investment for both hostel operators and investors alike. With no additional buyer’s stamp duty and strong rental demand, this is a great opportunity to take advantage of in the tourism-recovery post-pandemic.