Two conservation shophouses located at 6 and 7 Perak Road are now up for sale via tender with a guide price of $13 million, which works out to $2,425 psf on the total floor area. The properties have a built-up area of 5,360 sq ft, along with a land area of 2,870 sq ft, as well as an 11.4m-width frontage along Perak Road.
Situated in the Jalan Besar/Little India precinct, and three minutes’ walk from Rochor MRT Station, these shophouses have approval for usage as a backpackers’ hostel and are well-maintained, with minimal refurbishment required.
Gracelynn Zhu from PropNex Shophouse Elites – a division of PropNex Realty – noted that the properties enjoy strong rental demand due to their well-kept condition and strategic location in District 8, surrounded by amenities and close to the Bugis area. The current owner has received multiple offers from prospective tenants yet is looking to sell the shophouses with vacant possession, allowing the new owner to decide which type of tenant profile they would prefer.
Given the recovery of the proposed tourism sector following the pandemic, the properties could be seen as an ideal investment for hostel operators looking to capitalise on renewed interest in convenient and accessible accommodation. Additionally, these shophouses could also be seen as attractive assets for investors seeking strong rental and capital growth. It is estimated that they could potentially bring in a gross rental yield of over 3%.
Moreover, these properties are zoned for commercial use and therefore, no additional buyer’s stamp duty is payable on the purchase of the properties. The tender for this property will close on May 8 at 3pm.