Seven Freehold Joo Chiat Shophouses Listed at $100M

A row of seven adjoining freehold conservation shophouses is on the market at a guide price of $100 million. The commercial properties are located at 452, 454, 456, 458, 460, 462, and 464 Joo Chiat Road.

Collectively, the seven shophouses sit on a combined land area of about 8,442 sq ft, and have an existing Gross Floor Area (GFA) of 15,056 sq ft. With a plot ratio of 3.0, the double-storey shophouse block has a 68% potential increase in the maximum allowable GFA of up to 25,326 sq ft. The GFA can be maximised by adding a five-storey rear extension, subject to approvals.

Thus, the guide price translates to $3,948 per sq ft (psf) based on the maximum allowable GFA, says CBRE, the sole marketing agent. The portfolio will be sold in an Expression of Interest (EOI) exercise.

 The sale of the portfolio of seven commercial shophouses is available for purchase by both local and foreign buyers, subject to approval. No Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) is payable on purchase.

The conservation shophouses are located at the intersection of Joo Chiat Road and East Coast Road, and are fully leased. Tenants include Encore Muay Thai, Little Gryphons Montessori, PRAIRIE by Craftsmen (Joo Chiat), The Melting Pot and Cheeers Bistro & Bar.

“The row of seven shophouses at 452–464 Joo Chiat Road represents a rare trophy asset in one of Singapore’s most sought-after lifestyle destinations. Fully tenanted, the property offers immediate rental income and potential for further rental and capital appreciation as the Joo Chiat precinct continues to evolve,” says Joshua Giam, Director of Capital Markets at CBRE

He expects strong interest given the rarity of seven freehold conservation shophouses being offered as a contiguous row, particularly with existing permanent F&B approvals in place for several of the shophouses.

There is also scope to maximise the allowable GFA through a rear extension of up to five storeys, which could accommodate commercial uses or serviced apartment accommodation, subject to approvals.

The seven shophouses are a stone’s throw from other eateries, retail shops, galleries and fitness studios. Nearby major retail amenities include i12 Katong, Parkway Parade and Roxy Square, which contribute to the sustained footfall and commercial activities in the area.

The neighbourhood is also home to established schools including Haig Girls’ School, Tanjong Katong Girls’ School and CHIJ (Katong) Primary. 

This part of Joo Chiat also enjoys excellent public transport and road connectivity, with the Central Business District (CBD) a 15-minute drive away and proximity to major expressways such as the East Coast Parkway (ECP) and Kallang-Paya Lebar Expressway (KPE). It is also approximately an 8-minute walk from Marine Parade MRT station on the Thomson-East Coast Line (TEL).

How might this row of commercial shophouses in Joo Chiat transform through new ownership?

Predominantly known for its signature shophouses, the East Coast/Joo Chiat precinct has distinguished itself as a vibrant lifestyle enclave. The vibrancy of the area has long appealed to investors who desire to own some of the legacy assets there, including conservation shophouses.

In general, most investors will recognise the availability of this portfolio as a compelling opportunity to acquire a landmark asset with strong heritage value, not to mention long-term growth potential, says Giam.

For starters, it is rare to have not one or two, but seven shophouses in this coveted district up for sale. For incoming owners, the redevelopment potential is an opportunity that rarely comes up and will catch the eye of astute investors, despite strict conservation guidelines.

The properties also enjoy a prominent position within a well-established lifestyle and heritage destination that attracts persistently high footfall. The seven freehold contiguous units start from a corner address, which is conspicuously hard for anyone to miss. This could appeal to co-living operators or businesses who appreciate the prominent frontage from East Coast Road and Joo Chiat Road.

There is also an opportunity to leverage on the precinct’s strong F&B positioning and line up of offerings, with rare permanent F&B approvals granted to several of the shophouses.

Freehold commercial assets in prime city-fringe locations such as District 15 are rare. According to Giam, the 452–464 Joo Chiat Road portfolio is unique due to three factors – scarcity, income stability and value-add potential.

Based on recent past transactions along Joo Chiat Road, the estimated $3,948 psf based on the maximum allowable GFA for the shophouse collective falls at the lower end of the recently transacted price range.

The EOI exercise for the seven Joo Chiat Road shophouses will close on September 24.