These Rare HDB Shophouses Have Less Than 60 Years Left On Their Leases — And They’re Seeking Over $5 Million

Two HDB shophouses in Toa Payoh and Kovan have just been put up for sale. The shophouse at 178 Toa Payoh Central has an asking price of $5.5 million, while the shophouse at 210 Hougang Street 21 is listed for $5.3 million.

Currently marketed by Sakal Real Estate, the properties will be sold in an Expression of Interest exercise that will close on July 23. The shophouses can be acquired individually or collectively.

According to the marketing agent, the owner would like to continue running their business operations from the premises and would prefer to leaseback the properties post-sale. But they are also open to sell the shophouses vacant.

“With only approximately 8,500 privately-held HDB shops and shophouses remaining in Singapore, supply is limited whilst demand from investors seeking stable rental income assets remains robust,” says Steven Ming, Managing Director of Sakal Real Estate.

178 Toa Payoh Central (Toa Payoh Central)

The shophouse in Toa Payoh Central is located prominently along Toa Payoh Mall, the pedestrianised mall serves as the main commercial and retail thoroughfare in that neighbourhood.

The tenure on the 78-year leasehold shophouse started in October 1992, and it has about 44 years left on its lease. The two-storey shophouse has a total strata area of 1,345 sq ft – with a 635 sq ft commercial space on the lower floor, and a 710 sq ft space on the upper floor that is approved as Living Quarters.

The asking price of $5.5 million translates to $4,089 psf based on the strata area.

This commercial belt in Toa Payoh Central enjoys some of the highest footfall rates in this mature residential town, largely attributed to its proximity to HDB hub, Toa Payoh MRT station on the North-South Line, the nearby bus interchange, and Toa Payoh Library.

This part of Toa Payoh also boasts one of the largest concentrations of commercial buildings, retail amenities, and community facilities. Its convenient location close to several schools and residential estates makes up a large component of the retail catchment there.

At the moment, Toa Payoh Central is undergoing its most extensive rejuvenation. At the centre is an upcoming lifestyle, sports, and community hub. New facilities include a 10,000-seater stadium, a 5,000-seater indoor sports hall, a public library, and a new polyclinic. It is expected to be completed by 2030.

Located at the site of the former sports complex, this new 12-ha community development is along Lorong 6 Toa Payoh, which is next to the Toa Payoh Central estate where the shophouse for sale is located.

Commercial unit in the heart of Kovan City

The other HDB shophouse for sale is located at 210 Hougang Street 21 within Kovan City, the commercial and retail hub that is next to Kovan MRT station on the North-East Line.

The shophouse for sale has a 90-year leasehold that started in 1993, and it has about 57 years left on its lease. The two-storey property has a total strata area of 1,798 sq ft – the commercial space on the lower floor spans 850 sq ft, while the upper floor is 947 sq ft and is approved for Living Quarters.

The asking price of $5.3 million translates to $2,947 psf on the strata area.

The HDB shophouse is next to Kovan Food Centre, with the MRT station and a bus interchange nearby. The most significant change coming to the area is the upcoming completion of Kovan Wellspring, a 586-unit Build-To-Order (BTO) development that was launched during the August 2021 BTO sales exercise.

This development has a mix of two-room flexi, as well as three- and four-room flats. The BTO will be integrated with the new Paya Lebar Kovan Community Club. The entire development is expected to be completed before the end of this year.

This part of Kovan features a large number of condominiums, several landed housing estates, and HDB estates. Some of the neighbouring condos include Kovan Residences, Kovan Melody, and Stars of Kovan. Schools in the area include Xinghua Primary School, Yuying Secondary School, and Anderson Serangoon Junior College (which is moving to its new campus in 2028).

The scarcity and allure of HDB shophouses

HDB shophouses are a highly desirable commercial asset, and a valuable addition to most investment portfolios. Located in mature housing estates, HDB shophouses typically benefit from a large and resilient catchment of ready consumers from the neighbourhood.

Their relatively affordable entry price compared to other prime commercial properties, such as commercial shophouses in conservation areas, make them an appealing option for local retail investors.

“These HDB shophouses (at Toa Payoh Central and Kovan City) represent a compelling investment opportunity in one of Singapore’s scarcest commercial property segment,” says Ming. “The property’s prime location in Toa Payoh Central and in the heart of Kovan City, coupled with its proximity to major transport nodes and established amenities, positions them exceptionally well for capital and income growth potential.”

Last year, HDB shophouses rents came under the spotlight when it was revealed that median rents for privately owned HDB shophouses had more than doubled from 2Q2024 to 2Q2025.

HDB stopped selling HDB shophouses and retail shops to private owners in 1998. This means that there is a limited pool of available privately-held resale units in the market.

Amid the rental furore, HDB says that it may selectively acquire some privately owned HDB shophouses if needed, in order to better control the overall supply of commercial units in estates, which it directly leases to businesses.

The first that may get acquired by the government will likely be the 740 HDB shops sold on 30-year leases, and more than 80% have less than 10 years left on their lease. The remaining 7,700 HDB shops and shophouses, such as the properties on the market, have longer tenures.