SINGAPORE (THE BUSINESS TIMES) – A freehold three-storey conservation shophouse – known for the popular Boon Tong Kee chicken rice restaurant tenanted there – has been launched for sale with an indicative price of $9.5 million.
The price tag works out to about $2,369 per square foot based on the total existing built-up area of 4,010 square feet (sq ft), said sole marketing agent CBRE on Wednesday (Oct 07).
Located at 199 East Coast Road, the shophouse sits on a freehold site of about 1,795 sq ft.
The property is zoned for commercial use with a plot ratio of 3.0 within the Joo Chiat Secondary Settlement, under the Urban Redevelopment Authority’s Master Plan 2019.
The maximum allowable gross floor area is about 5,385 sq ft, subject to the authorities’ approval, said CBRE.
The shophouse is fully tenanted, with the ground and third floors leased to the Boon Tong Kee restaurant, which has been operating at the premises for more than 15 years.
This will provide the incoming buyer with immediate rental income, CBRE said.
Alternatively, once the existing leases expire, the buyer can consider maximising the plot ratio by building a rear extension to increase the floor area by 34 per cent, subject to the authorities’ approval, it added.
There will be no additional buyer’s stamp duty or seller’s stamp duty imposed on local or foreign buyers.
Within the neighbourhood, the upcoming Marine Parade MRT station is set to open by 2023. Asset enhancement initiatives are also being conducted at the i12 Katong mall nearby, scheduled to be completed by 2021.
Other commercial developments in close proximity to the property include the Katong Point and Parkway Parade malls. There is also a large residential catchment from the Marine Parade housing estate.
CBRE senior director of capital markets Clemence Lee said there has been an increase in interest for shophouses in the East Coast area recently.
This could be because food and beverage outlets and retail businesses in the vicinity are doing well, with more people frequenting the neighbourhood more often as they work from home, Mr Lee added.
“The area is expected to become even more dynamic upon the completion of rejuvenation activities,” he noted.
Similar properties sold in the vicinity included 139 East Coast Road, which was transacted last month at $6.6 million, according to Mr Lee. A row of three shophouses at 101-105 East Coast Road also changed hands recently, at $14 million, he said.
The sale of 199 East Coast Road will be conducted via an expression of interest exercise, which closes at 3pm on Nov 12.