Some recent shophouse transactions have occurred recently, including in Hongkong Street for which the lease sold for 14.45 million Singapore dollars, which calculates to around 1,780 Singapore dollars on a gross floor area approximately 8,100 square foot. The shophouse, number 31 Hongkong Street, stands on a site measuring 1,747 square foot and the lease has 91 years remaining on the lease.
Principal Garden Condo by UOL
This price is lower than a Principal Garden UOL at number 39 for which 1,899 per square foot was paid in March 2015. This is partly because the land at number 31 is 20% small than that at number 39 and the lease has 97 years rather than 91 years left to run.
Both properties are at the maximum GFA for the area. Under the 2014 Urban Redevelopment Authority Plan 2014, this area is in a commercial zone. Principal Garden UOL Hongkong Street is in a conservation area, which is classed as a secondary settlement, meaning the front façade of the building must remain unchanged, but one can go up to 6 storeys at the back.
Principal Garden Prince Charles
Number 31’s seller is thought to be a shipping company and the buyer is 8M Real Estate. The shipping company will lease the premises from 8M for a short time. Ashish Mancharam director at 8M said that after that the premises will be refurbished and tenanted with a food outlet on the ground floor and offices above. 8M Real Estate was established by Ashish Mancharam, previously of JLL investments in Principal Garden UOL at Prince Charles Crescent, in 2014 and invests in boutique property. Mr. Mancharam said that he was attracted to the area because of the number of new food and beverage operators, who are revitalizing the area. He added that the area is popular with office tenants because of its proximity to the Central Business District and the MRT station Clarke Quay.