Sakal Real Estate Partners is delighted to launch the sale of 21 New Bridge Road, a prime conservation shophouse in District 1, via private treaty.

The 4-storey shophouse with roof terrace, which tenure was topped up to a fresh 99-year lease in December 2021 is just embarking on its refurbishment which is slated to complete in the 1st quarter of 2023. It is also available for sale on an as-is basis, should the new purchaser decide to undertake the refurbishment on their own.

The asset boasts a prominent frontage, with direct sheltered access to Clarke Quay Central Mall and Clarke Quay MRT Station. It is also well located and is in proximity of the Clarke Quay F&B and Entertainment enclave, Raffles Place, Boat Quay, as well as Chinatown.

The vacant shophouse occupies a land area of 1,443 square feet (sqft) and will have a gross floor area (GFA) of 5,034 sqft (excluding roof terrace) after refurbishment, with a new lift installed. Additionally, as it is situated within a secondary conservation area, a rear extension may be allowed and can be built up to a GFA of 6,063 sqft, subject to approval from relevant authorities.

Sitting on land zoned " Commercial" with a Plot Ratio of 4.2, the ground floor is currently approved for "Restaurant" use, with upper floors suitable for "Office", " Shop", Takeaway Foodshop” use, subject to approval from relevant authorities. Foreigners are eligible to purchase, without attracting any additional buyer's stamp duty or seller's stamp duty.

“The conservation shophouse market has outperformed in recent years. Its limited supply and heritage appeal not just attracts real estate funds but also family offices and high net worth individuals who liken investing in shophouses to investing in art. The sector is expected to continue to remain resilient with upside bias given the weight of private wealth that are making allocations into Singapore real estate especially given the inflationary environment as well as Singapore’s relative safety considering the geopolitical tensions that exist and our successful safe management through the covid pandemic.” Says Steven Ming, managing partner at Sakal.

 Conservation shophouses within the block bound by North Bridge, North Canal, South Bridge and Upper Circular Roads tend to be leasehold in nature. Unless they have had their leaseholds topped up recently, several of them will be at advanced stages of lease decay. In some instances, with less than 5 years remaining.

“This would suggest that a number of those shophouses will have their leases topped up imminently and extensive refurbishment will likely ensue, as we have seen with several of the properties within the block. The rejuvenation of the micro location will in time translate to a positive re-rating in both rents and capital values as the area progressively enhances.” Says Kho Zhen Hong, senior manager at Sakal.