Over the past few years, HDB shophouses have become highly sought after by investors due to the additional buyer’s stamp duty (ABSD) payable for residential properties. In response to the demand, Huttons Asia is launching an expression of interest (EOI) exercise for four single-storey shops at Block 475 Tampines Street 44. The guide price for all four shops is set at a total of $12 million.

These shophouses are all zoned for commercial use and have a remaining balance lease of approximately 68 years. Two of the units are corner shops and all four are currently tenanted. Its convenient location – within walking distance of the Tampines East MRT Station of the Downtown Line – offers great potential for human traffic, along with ample parking for patrons. Furthermore, the area is likely to draw in more customers when residential homes are built on the empty parcels of land in the vicinity.

Lee Sze Teck, senior director of research at Huttons Asia, emphasizes the potential this property holds for investors. Considering there are only 8,500 HDB shophouses available for resale in the market that are not subject to ABSD or seller’s stamp duty, he believes the shophouses will attract “healthy” interest from investors.

Recent rental transactions on 475 Tampines Street 44 (Source: EdgeProp Research tool)

JCube is set to close its doors in August to make way for JCube Condo Residence, a 40-storey residential JCube Residence and commercial development. Expected price tag and amenities add to anticipation over potential residential launches in the vicinity.

Jeremy Lim, senior group district director of Huttons Asia, also sees the potential of this purchase. He believes the affordability of HDB shophouses, compared to conservation shophouses, gives it a distinct advantage.

The EOI exercise will close on May 17 at 3 pm. Investors interested in this opportunity are encouraged to act quickly.