Two-storey HDB shophouse at Bukit Merah Central for sale at $2.55 mil
The real estate has a period of 103 years from 1980, which suggests it has a remaining lease of 59 years. Its ground floor occupying 732 sq ft is zoned for commercial usage, whilst the 850 sq ft top ground is zoned for residential usage.
A two-storey HDB shophouse around Bukit Merah Central is going to be raised for public auction by SRI on November 27. Based upon its floor surface area of 1,582 sq ft, the overview price of the shophouse is $2.55 million or $1,612 psf.
The shophouse is just within walking distance of the Bukit Merah bus interchange near Bukit Merah Central, the Gan Eng Seng Primary School and Bukit Merah Secondary School. The Redhill MRT Terminal is around a 15-minute walk away.
The shophouse is completely tenanted and will be marketed with its presenting occupancies. The ground floor is leased to a Domino’s Pizza dining establishment up until 2026, while the upper floor is rented to a residential occupant till 2027.
A proprietor’s sale, this is the first time the real estate is going up for sell-off, according to Eric Liew, supervisor of auction sales at SRI. “The owner aims to offer the real estate to liquidate their venture,” he explains.
The shophouse rises inside the Bukit Merah Town Centre that comprises a cluster of buildings with shops and other features, featuring the Bukit Merah Polyclinic and Bukit Merah Central Food Centre. There is even a four-storey boutique convention facility, Rubikon, and Gateway Theater, a performing arts centre.
Data compiled on EdgeProp Research study shows that the latest business deal at 161 Bukit Merah Central was the profit of a 1,582 sq ft shophouse that yielded $1.5 million ($948 psf) in March 2021.
As HDB shophouses are deemed business property, the shophouse will be eligible for acquisition by foreigners. However, additional purchaser’s stamp duty will most likely be payable on the property’s non commercial part, whereas the commercial component is going to be susceptible to the goods and services tax obligation.
The real estate has gotten a couple of enquiries from interested parties, mentions Liew. “These are normally financiers that are attracted to the building’s site in the main area of Bukit Merah,” he adds.
