3 Rare Freehold Bukit Timah Retail Units Are Asking $18.5M — Up To 18% Below A Recent Sale

Three freehold commercial properties behind National Junior College and Raffles Girls Primary School have been listed for $18.5 million. The ground floor retail units are located at 20, 26 and 28 Greenwood Avenue within the Hillcrest Park landed enclave.

Collectively, the three units have a combined gross floor area of 4,456 sq ft, and the asking price translates to $4,150 psf.

The properties for sale are also close to Tan Kah Kee MRT station on the Downtown Line. This area is also well-connected by Dunearn Road and Bukit Tiamh Road, as well as the Pan-Island Expressway (PIE) and Central Expressway (CTE).

The properties, which are currently marketed by CBRE, will be sold in an Expression of Interest (EOI) exercise. Moreover, the portfolio of retail units can be purchased individually or collectively. The sale is open to locals and foreign buyers, with no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) payable.

Details of the properties

Across Hillcrest Park, ownership of the handful of commercial units within the landed estate remains highly exclusive. Along Greenwood Ave, the row of 27 retail properties feature a wide range of tenants and lifestyle operators, including familiar brands like Baker & Cook, Greenwood Fish Market, La Braceria Pizza & Grill, Craftsmen Coffee, and Cold Storage.

“Freehold commercial space in Bukit Timah has always been scarce, and there is no known new supply planned for the vicinity,” says Clemence Lee, Executive Director of Capital Markets at CBRE Singapore.

The enduring demand for retail units in Bukit Timah remains high, largely driven up by the scarcity of freehold commercial real estate in the affluent and established landed enclave. The neighbourhood is currently home to approximately 86,000 residents and is known for its network of established educational institutions.

Notable schools in the vicinity include Raffles Girls’ Primary School, National Junior College, Nanyang Girls’ High School, Hwa Chong Institution and Hwa Chong Junior College. Together, they formed a substantial captive catchment for the precinct’s retail and F&B offerings.

Moreover, ongoing development plans look set to increase the area’s overall retail footfall. As the nearby 176-hectare Bukit Timah Turf City develops, the new residential precinct will welcome a large influx of new HDB residents and a wave of new condominium developments like Dunearn House.

This will be the first time in about 40 years that Bukit Timah will see new public housing break ground, paving the way for more Singaporeans to live in this neighbourhood. Up to 20,000 new public and private homes are expected to be built in Bukit Timah Turf City over the coming years.

The combination of rising retail demand (from the increase in resident population) and a fixed supply of shopfronts is a compelling proposition for investors seeking rental resilience and long-term capital appreciation, says Lee.

With the average $PSF price of the three-unit retail portfolio standing at $4,150 psf, the units are priced at a competitive rate compared to the average price of freehold commercial units in that district. According to transaction data, the average price of a freehold commercial unit within the Greenwood neighbourhood is about $4,613 psf.

Past 10-year retail transactions in Greenwood Avenue

The sale of the portfolio of units is also at a 10% to 18% discount compared to a recent $7.1 million ($4,613 psf) sale for a 1,529 sq ft unit at 24 Greenwood Avenue, after that unit was sold on July 7 this year.

In the broader Bukit Timah area, the market for freehold retail properties typically records older freehold strata retail developments such as Coronation Shopping Plaza and Holland Road Shopping Centre, where units have consistently transacted between $4,000 to $5,000 psf.

With a substantial expansion of the resident catchment that will be a short drive or MRT ride to Greenwood Avenue, CBRE expects there to be stronger support and longer term demand for F&B and lifestyle offerings.

Lee anticipates strong buying interest from high-net-worth investors and family offices, as well as owner-occupiers such as boutique retailers and food and beverage operators who are looking to secure a foothold in this highly sought-after freehold enclave.