Investing in condominiums in Singapore is a lucrative opportunity, but it’s essential to consider the government’s property cooling measures. To maintain a stable real estate market and prevent speculative buying, the Singaporean government has implemented various measures over the years. One such measure is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may affect the short-term profitability of condo investments, they also contribute to the long-term stability of the market, making it a safer investment environment. In addition to this, keeping an eye out for the New Condo Launches could also help investors stay updated on the latest developments and opportunities in the Singapore condo market.
A 214 Serangoon Avenue 4 HDB shophouse with a 99-year leasehold is set to be auctioned off by SRI on Feb 26. With a total floor area of 1,668 sq ft and two storeys, the property also includes living quarters on the second floor. It has been listed at a guide price of $1.98 million, which translates to $1,187 psf on the floor area.
The shophouse, which is currently tenanted, offers a gross rental yield of approximately 6.2% based on the guide price, according to Jansen Kee, assistant manager of auctions at SRI. This is the second time it has been put up for auction, with a higher guide price of $2.08 million last month, but it did not find a buyer.
Kee points out that the shophouse enjoys good visibility from the road as it is prominently positioned in front of a bus stop. He also adds that the unit will be sold with its existing lease, which ends in 2026. This means that the new owner will have an immediate stream of rental income.
Additionally, Kee highlights that the guide price for the HDB shophouse is among the lowest for this asset class in the area, which makes it an attractive value proposition for both investors and owner-occupiers.
Records from URA show that the most recent commercial shophouse transaction in Serangoon was in November 2024, when a 999-year leasehold shophouse along Lichfield Road was sold for $4 million ($1,725 psf). The two-storey property had a land area of 2,319 sq ft.
Situated within a cluster of HDB flats that borders the Serangoon Gardens landed residential estate, the shophouse is located directly across the road from Serangoon Swimming Complex and Serangoon Sports Centre, which contribute to the area’s steady foot traffic. There are also available carparks behind the shophouse.