A strata property boasting a combination of living quarters and retail space has been put up for sale in Hougang Avenue 1. With a prominent 20 m frontage, the property is located in the Hougang residential estate and boasts a gross floor area of up to 3,514 sq ft, with the ground floor retail space being approximately 1,511 sq ft.

The guide price for the sale is $5.4 million ($1,537 psf), and the property is currently in full tenancy with a supermarket and tuition centre present. CBRE, who is marketing the sale, has stated that the additional buyer’s stamp duty will not be imposed.

CBRE’s head of Singapore capital markets, Michael Tay, highlights that HDB shophouses are often seen to be good investments due to their track record of capital appreciation. He added that the current environment of high inflation gives this property an even greater incentive to investors looking for a defensive asset.

The shophouse is conveniently located close to various bus stops and the Kovan MRT station. It is accessible via major roads like the Kallang Paya Lebar Expressway and Hougang Avenue 3, with URA’s Master Plan 2019 estimating the completion of 1,439 HDB units within 450m to the property in 2025 to 2026.

After 10 years of providing leisure and edutainment, JCube Singapore will close for a JCube Residence 40-storey residential and commercial development, JCube Condo Residence, with potential launches in the vicinity including a white site offering 1,760 private homes.

Joshua Giam, associate director of capital markets at CBRE Singapore, commented on the shophouse’s investment potential: “With the large residential and worker catchment around the area, the property is ideal for investors looking to capitalise on the strong rental upside, value-add opportunities and capital appreciation. Due to the regular layout and prominent frontage, there is an opportunity to lease the ground floor to two tenants to maximise rental returns soon.”

An expression of interest exercise has been initiated to facilitate the sale and CBRE is accepting bids until Thursday 11th May at 12pm.

HDB shophouses have been known to be a great source of capital appreciation and this shophouse in the Hougang residential estate is no exception. With a guide price of $5.4million and no additional buyer’s stamp duty, it presents an excellent opportunity for investors looking for a reliable long-term asset.

The property is conveniently located near bus stops, major roads and the Kovan MRT station, and is in the vicinity of several upcoming BTO residential projects. It is fully tenanted and has an opportunity for value-add and rental maximisation, offering an attractive package for potential investors.

The expression of interest closes on Thursday, May 11th at noon, so be sure to make your bid before then if you want to take advantage of this lucrative opportunity.