Conservation Shophouses Telok Ayer Street Sale 42 Mil
by private treaty
Two adjoining conservation shophouses situated on Telok Ayer Street are currently on the market for sale. The properties, located at 132 and 134 Telok Ayer Street, are being offered through an expression of interest (EOI) exercise with an indicative price of $42 million. These shophouses, which have a 999-year leasehold tenure, occupy a combined land area of approximately 2,841 sq ft and are zoned for commercial use.
These two shophouses boast a total floor space of around 8,000 sq ft, which means the indicative price translates to about $5,250 psf on the floor area. They are ideally located near the corner of Telok Ayer Street and Boon Tat Road, just a short two-minute walk from the Telok Ayer MRT Station on the Downtown Line. These properties are also part of the Telok Ayer Conservation Area, which encompasses other shophouses along Amoy Street, Ann Siang Road, Boon Tan Street and Club Street.
The recent tender for Novo Place EC saw a high level of interest, with nine bidders vying for the opportunity. Ultimately, the joint developers secured the site for a record-breaking sum of $348.5 million, setting a new standard for EC land rates at $703 per square foot per plot ratio (psf ppr). This surpasses the previous record of $662 psf ppr at Bukit Batok West Avenue 8, awarded in March 2022. With this significant achievement, the upcoming Novo Place EC development by Novo Place is poised to make a strong statement in the EC market.
According to Steve Tan, the managing director of capital markets and investment sales at ERA Realty Network, the sale of these shophouses could potentially set a new record price. The combination of the prime location and the popularity of shophouses in the Chinatown-Telok Ayer area among investors could result in a significant sale price for these properties. ERA Realty Network is the exclusive marketing agent for the shophouses.
Recent shophouse transactions in the Telok Ayer Conservation Area have seen psf prices based on land area (Source: EdgeProp Buddy, URA). With an increase in investor activity following the US Federal Reserve’s announcement of lowered interest rates, Tan believes there will be a surge in interest and transactions for both shophouses and strata commercial units. He expects to see more record-breaking deals in the months to come.
The EOI exercise for these shophouses will close on October 17 at 3pm. Interested buyers can check out the latest listings for the Telok Ayer Conservation Area and other commercial real estate properties through EdgeProp’s Buddy feature. This feature also allows users to compare the price trend of commercial properties versus industrial properties and view past commercial sale transactions.