Two freehold shophouses off Serangoon Road going for $6.6 mil

By Timothy Tay/ EdgeProp Singapore|February 4, 2020 5:23 PM SGT

SINGAPORE (EDGEPROP) – A pair of shophouses at 24 and 26 Moonstone Lane have been offered for sale as a bundle by Expression of Interest, announced CBRE, the sole marketing agent for the sale. The freehold properties have an indicative pricing of $6.6 million. This translates to $944 psf per plot ratio based on the site’s maximum allowable gross floor area (GFA) of 8,632 sq ft. The development charge to maximise the plot ratio is estimated to be $1.55 million but is subject to confirmation on the development baseline. Located off Serangoon Road, the shophouses have an average depth of 25m and a road frontage of 11m. They occupy a site area of 2,877 sq ft and have a combined built-up area of 4,628 sq ft. Under the 2019 Master Plan, the land is zoned “Residential with Commercial at 1st storey” with a gross plot ratio of 3.0, and a building height limit of six floors.

Thus, the properties may be redeveloped into a mixed-use development with a total maximum allowable GFA about 8,632 sq ft, subject to approval. 

An estimated development charge of $1.55 mil might be payable to maximise the site’s plot ratio if it were redeveloped.(Picture: CBRE)

Clemence Lee, senior director of capital markets at CBRE, says: “Compared to shophouses located in the conservation areas, shophouses such as the subject property that are located in non-conservation areas will give the buyer more flexibility in redevelopment options.”Lee says keen interest from developers and contractors is expected as redevelopment opportunities in the Kallang Planning Region are rarely made available. The sale will also appeal to private investors on the lookout for well-located freehold shophouses, he adds. The shophouses are fully tenanted and can provide the new owner with immediate rental income.URA has earmarked the areas along the nearby Kallang River to include more lifestyle elements, and the shophouses are close to the Bidadari and Kallang Whampoa neighbourhoods, which are expected to house more than 13,000 new residential units by 2023, says Lee, adding: “The buyer can expect to benefit from the subject property’s strong capital appreciation over the medium term.”

Interested parties are to submit their offers by March 11.

Original Article: https://www.edgeprop.sg/property-news/two-freehold-shophouses-serangoon-road-going-66-mil

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