- The segment remains popular amidst economic uncertainty
- Shophouses saw transactions increase to S$193.2 million in Q1 2023
- 24 Purvis Street is next door to several Singaporean icons
A Singaporean shophouse located almost next door to Raffles Hotel, and within close proximity of Raffles City, Suntec City, CHIJMES, and more, has come to market.
The listing comes months after another iconic shophouse at Boat Quay was sold for a $16 million profit.
Shophouses in vogue
The appeal of Singapore’s shophouses stretches far beyond appearance and charm alone. Investors have previously warmed to the asset, as Singapore’s property cooling measures such as Additional Buyer Stamp Duty or Seller’s Stamp Duty were not imposed on the shophouse segment.
Not only did the segment buck retail transactions trends last year, but it has also remained popular in the face of global and economic uncertainty.
Savills Singapore’s April 2023 Sales & Investment Briefing said the real estate investment market in Singapore remains stable. While institutional investors stayed on the sidelines, corporate buyers and UHNWIs partially filled the void.
“In addition, the bank fallout in the United States and the weakening US dollar could also have triggered a partial flight by UHNWIs to physical assets in safe-havens, such as luxury apartments, strata offices and shophouses.”
Savills, April 2023 sales & investment briefing
The segment saw sales increase by 11.2% or circa S$20 million from the final quarter of 2022 (S$173.7 million) to the first quarter in 2023 (S$193.2 million), according to Savills.
Among the notable transactions for Q1 2023, is a S$62.5 million acquisition of six freehold shophouses along Serangoon Road, and the S$37 million sale of 52 Boat Quay.
Retail is also well on the road to a slow and steady recovery, Savills’ March 2023 Retail report found prime rents gradually rose, and vacancy rates continued to fall.
24 Purvis Street comes to market
The latest listing includes a shophouse about 200 metres from Raffles Hotel, and a stone’s throw from several well-known Singaporean icons.
Situated in the heart of City Hall, Singapore’s Civid and Cultural District, the property is close to the corner of Purvis Street and Beach Road.
The Purvis Street and Seah Street enclave has reinvented itself over the years to become a posh locale peppered with distinctive, well-preserved shophouses housing an eclectic mix of cafés, art galleries, and lifestyle retail outlets.
It has become one of Singapore’s trendiest lifestyle and F&B destinations among locals and expatriates.
Tenanted by F&B
The refurbished, two-storey shophouse, with an attic, is located at 24 Purvis Street.
It sits on a circa 1,679 square feet site, with an existing gross floor area of circa 3,702 square feet.
Under the Urban Redevelopment Authority’s (URA) Master Plan 2019, the shophouse is zoned “Commercial and Residential” with a plot ratio of 4.2 and a five-storey rear extension permitted. This allows for value-add potential to intensify the floor area to approximately 7,052 square feet.
Both levels of the property come with “restaurant” approvals and include the necessary provisions for F&B operators. The property boasts strong tenant profiles with the ground floor currently occupied by Fizzy Dayz, a casual diner bar concept by award winning Nutmeg & Clove group, while the upper floors are occupied by a popular board game café operator King and the Pawn.
“24 Purvis Street presents a compelling opportunity for investors to acquire a rarely available for sale 999-year shophouse in the heart of City Hall,” said Yap Hui Yee, Executive Director, Investment Sales & Capital Markets at Savills Singapore.
“With significant value-add potential, further capital and rental value can be unlocked by building a rear extension to the existing property to increase the floor area and introduce new tenant concepts.
“Alternative uses such as hospitality, accommodation, wellness and healthcare can be explored, subject to approval from the relevant authorities.
“The locale is also poised to benefit from the vibrancy and increased population catchment from neighbouring existing and upcoming residential and commercial developments.”
Savills said the indicative price for the property is S$17.8 million, representing circa S$2,876 per square foot per plot ratio, with the expression of interest exercise closing on 21 June 2023.
