Archive for category: Real Estate

In Singapore certain buildings are located on the boundary between 2 districts, and can play an important part in the evolution in an entire area. For instance, the old 13-story Maxwell House, situated at the intersection of the CBD as well as Chinatown. It was built in 1971. Maxwell House was located at the address 20 Maxwell Road for the next 50 years. It was considered to be part of District 1 and also the CBD as a result, making it was part of the Core Central Region (CCR).

On April 20, 2021 Maxwell House was acquired as a bloc through a 40:30/30 joint venture with Chip Eng Seng Corp, SingHaiyi Group and Chuan Investments for $276.8 million. Redeveloped into the brand TMW Maxwell TMW Maxwell, the building can be accessed via Tras Street, a quieter street with a side that is lined by shops and houses that lie just from on the Maxwell Road thoroughfare.

The new address change in the 31st Tras Street and the orientation of the building place TMW Maxwell in Chinatown in District 2. This means it’s now located in the Rest of Central Region (RCR).

Hillock Green Lentor Central mrt offer direct access to the Thomson-East Coast Line via covered walkways.

Despite the fact that the property was not eligible for CBD Incentive Scheme or Strategic Development Incentive Scheme, the committee for collective sale from the previous Maxwell House had obtained an Outline Planning Permission to increase the plot ratio from 4.3 to 5.6. This means that TMW Maxwell enjoys a 30% rise in plot ratio and has the gross floor area (GFA) that is at least 233,987 square feet.

“When this group sale site [formerly Maxwell Housestarted and we began to think about the idea of a vertical garden amid the concrete jungle and how we could help make working from home enjoyable for our customers,” says Raymond Chia who is the Group CEO of Chip Eng Seng.

URA believes that this is “a crucial connection point that connects with the Conservation Area of Club Street and Ann Siang Hill to the Tras Street-Tanjong Pgar Conservation area” according to Michael Ng, executive director of CEL Development, the property part of Chip Eng Seng.

URA even enlisted the design advisory panel (DAP) consisting of a group of architects who analyzed the design. “The DAP looked at the aesthetics of the project and how it blends into the CBD,” says Peter Wee the general manager of marketing and business development for CEL Development. “Getting the planning permit and the written permission was a lengthy process.”

Flexible spaces, vertical gardens
The 20-story TMW Maxwell was developed by the renowned Singapore-based architect business Formwerkz Architects. The mixed-use project will comprise 11 commercial units from the basement up to the third floor, and 324 housing units from the fourth to the 20th floor. The mixed-use development has 99-year lease that runs from April 2023. It is expected to be completed by the beginning of 2027.

The commercial units – made up between retail as well as F&B within the upper level of the property comprise approximately twenty% in the GFA. These F&B units on each level will be facing the pedestrian walkway. There is a linkway through the block for pedestrians to walk along Tras Street.

Landscape designer Compound Collaborative has designed the public space as an “outdoor living space” with comfortable seating areas, including the amphitheatre seating area that extends from the basement level to the third floor. “This is an important central point for URA because they’re looking to revitalize this stretch of Tanjong Pagar and Tras Street,” says Ng.

From the fourth through 20th levels is a collection of gardens that are vertically stacked that offer amenities including lounges, pools, an observation deck, and peaceful places to study, read or meditate. They are available exclusive to residents and go up to the roof which has more amenities which include eating areas, a clubhouse, fitness center and a 25-meter infinity lap pool, with a jacuzzi and lounge chairs, and aqua seats.

‘Quantum play’
The majority of% of the apartments in TMW Maxwell comprise studios, with dimensions ranging from 476.3 to 479.4 square feet. They’re designed as “flip/switch models” with rooms that can be altered according to the requirements of the inhabitants, such as a moveable walk-in wardrobe that has a pull-out work space to a queen-sized Murphy bed that is a part of a sofa with a pull-out table for dining on the counter in the kitchen, as well as a concealed outdoor table with a pull-out which is a perfect spot to enjoy wines on a calm evening.

Justin Quek, deputy CEO of OrangeTee & Tie, sees the switch and flip studios as “fresh innovative, exciting that is relevant for their population who will be awed by the concept of live-work-play that is a part of the vibrant neighborhood of Tanjong Pagar”.

The flip/switch model “is perfect for people who don’t necessarily want to spend a lot of time at home, but enjoy the flexibility of rooms that can be used for work at home or for entertaining” according to Quek. “This is balanced by having the spaces sized efficiently so that prices are more affordable.”

Another 21% of the units are one-bedroom and one-bedroom-plus-study, ranging from 510 to 567 sq ft. Five lofts with one bedroom that range from 843 to 870 square feet. 2 bedroom and 2-bedroom dual-key units that have dimensions ranging from 792 to 860 sq ft comprise fifteen% percent of units.

“At TMW Maxwell, we have developed a live-work-play idea that is designed to meet the needs of people who prefer to be in cities,” says Chip Eng Seng’s Chia. “People who work from home might not be able to stay in their home for the entire day. To get a break from the monotony you can visit one of the tranquil corners within the vertical gardens or the seating areas with a landscape down the hall.”

Around 85% of the units at TMW Maxwell will cost between $1.5 million to $2 million. Prices start at $3,188 per square foot.

Marcus Chua, CEO of ERA Singapore, says TMW’s pricing “is in the optimal point” as 37.2 % of the residential transactions this year were within the $1.5 million to $2 million price range.

“With mostly one-bedroom and studio units with prices that range from $1.5 million to $2.5 million TMW will be focusing its efforts on an investment of quantum magnitude,” says Ismail Gafoor who is the PropNex’s CEO. PropNex.

Target audience
Peter Wee, CEL Development’s general director of marketing and business development believes that young professionals working in the CBD are the primary market. “They love living close to their workplaces because the development is close to Tanjong Pagar, Robinson Road and Cecil Street,” he states. “It’s located across the street to the F&B and bars in Ann Siang Hill, Club Street and Chinatown.”

Maxwell Food Centre is located directly across the street. In the near future, there’ll be F&B choices on some of the upper floors at TMW Maxwell. Chia’s Chip Eng Seng Chia shares that instead leasing the eleven commercial buildings in one title in a strata, Chip Eng Seng will be overseeing the retail as well as F&B tenants. “We would like to ensure that there is an appropriate mixture in F&B as well as retail” Chip Eng Seng says.

TMW Maxwell is just a 2 minute walk across the road from Maxwell MRT Station (Thomson-East Coast Line). From there, it’s only 1 MRT stop away to Shenton Way. Tanjong Pagar MRT Station (East-West Line) is also walking distance. Raffles Place being just one MRT stop away, and City Hall two stops away.

Its position at the boundary with the CBD is a major draw, says Gafoor of PropNex. “It’s not located in the middle of the CBD since it’s right across the street from the Maxwell Food Centre, with Chinatown close by,” he adds. “TMW offers the ideal of both worlds. It will be a popular choice for young couples and singles who enjoy the convenience of a work-live-play model and the convenience of not having to travel far to work in the city.”

Alongside the locals Gafoor anticipates TMW Maxwell to also draw permanent residents as well as international visitors from five nations that have an agreement for free trade with Singapore. They can benefit from the buyer’s stamp duty reduction Gafoor says. The five countries are US, Iceland, Liechtenstein, Norway and Switzerland.

Upcoming developments nearby
Chia’s Chip Eng Seng Chia is aware of upcoming projects that are planned in the area. Soon after the joint venture partners bought the previously-owned Maxwell House, the 351-unit One Bernam was officially launched in the early part of May 2021. While the median price for One Bernam is $2,528 psf and units located on at the top of 24th floors have been offered for prices ranging from $3000 to $3340 per square foot since September of last year according to caveats filed. As of now, 54.4% of the units at One Bernam have been taken up.

The next step is the opening of 246 units at Newport Residences (redevelopment from the old Fuji Xerox Towers) located on Anson Road, part of an open-hold development which includes office buildings, serviced apartments and retail.

There’s also the 215-unit Skywater Residences. It is the possibility of a range of one-to four-bedroom units that are situated on the top floors of Singapore’s next tallest building, with 63 storeys and 305 metres high. The tower is being developed as an expansion of the AXA Tower located at 8. Shenton Way by Alibaba and Perennial Holdings in a 50:50 joint venture. Chip Eng Seng and SingHaiyi purchased 21% part of PRE13 which is the subsidiary of Perennial Holdings which owns its 50% part within AXA Tower. Skywater Residences is designed as an ultra-luxury residence.

Malaysian company IOI Properties will develop a new residential development of 748 units, Marina View Residences which will include a luxurious hotel located at Marina View. The development is situated on an site close to Shenton Way MRT Station that the developer won as the sole bidder in the government land sale auction worth $1.508 billion in September 2021.

In the latter part of June, Chinese developer Kingsford Group was awarded the bid for the site located at Marina Gardens Lane by submitting the most expensive price that was $1.034 billion ($1,402 per square foot for plot ratio) in conjunction in partnership with Obsidian Development and Polarix Cultural & Science Park Investment. It is a 99-year leasehold site comprising 131,805 square feet is zoned for residential and commercial on the first level and is able to be transformed into a 790-unit residential development with 8,073 square feet of commercial space.

But, Chip Eng Seng’s Chia is adamant about his product. “This idea is available at TMW can’t be replicated elsewhere and everywhere else,” he says.

Apart from couples who are single and dink (dual earnings, with no children) families, Mark Yip, CEO of Huttons Asia, sees TMW appealing to investors seeking to tap into the rental demand from professionals who work located in the CBD. Yip believes investors will appreciate the dual-key units. “The dimensions and the mix of units are designed to appeal to the local market and are expected to receive a positive reaction,” he adds.

TMW Maxwell presents “a good investment” in District 2 for investors, as per the ERA’s Chu. “District 2 is home to the second highest rent at $7.34 per month, psf for two-bedroom and one-bedroom condominium units, which is lower than District 6, which is the High Street, Beach Road zone,” he says.

Based on lease and sale transactions that have occurred in the Tanjong Pagar-CBD region this area is very popular among young professionals, says OrangeTee’s Quek.

The purchase of the 1,690 sq. ft three-bedroom apartment located at The View @ Meyer The View @ Meyer topped the list of condos which set a new psf highest from June 23 through 28. The three-bedroom unit on the 17th floor was purchased at $3.83 million ($2,266 per square foot) on the 27th of June. This is higher than the previous record in the building, which came by selling a 1,798 square feet four-bedroom apartment located on the 21st level for $3.78 million ($2,100 per square foot) in February 2011.

Hillock Green condominium is reserved for private housing development, will offer direct access to Lentor MRT station on the Thomson-East Coast Line via covered walkways.

The View Meyer is an undeveloped condo with freehold rights situated on Meyer Road in Marine Parade in District 15. The exclusive 45-unit development is completed as of 2009 GuocoLand. It offers one- to four-bedroom units ranging from 629 sq ft to 1,894 square feet in addition to the penthouse with 4,209 sq ft located on the second floor.

The View is located at the intersection at the intersection of Meyer Road and Arthur Road, The View @ Meyer is situated next to an exit from Katong Park MRT Station on the Thomson-East Coast Line, which is scheduled to open in the coming year. It is also right next to Katong Park’s playground. Katong Park playground.

The View at Meyer is also located near schools, recreational facilities, as well as amenities in The East Coast area. Dunman High School and the Singapore Swimming Club are less than 500m away. Katong Park and East Coast Park are both within walking distance.

Over the past 10 years the costs in The View @ Meyer have gone up from $1,610 in July 2013 to $2,260 per month.

The 41-unit neighboring Arthur Mansions (completed in 1993) located on Arthur Road has an average cost of $1,968 per square foot The Meyer Residence located on Meyer Place sees units transact at around $2,171 per square foot. The Meyer Residence, which is 68 units Meyer Residence was completed in 2009.

As a comparison, the newest projects in the area have rates of just over $2500 per square foot. One Meyer is one of the 66 units in a condo owned from Sustained Land, has an average cost of around $2,526 per square foot. Liv @ Mb, which is a 99-year leasehold development developed by Bukit Sembawang Estates, sees units selling for around $2,544 psf.

In District 10, the most desirable district, the selling of 1,302 square ft unit in Sommerville Park set a new price per square foot for the condo. The three-bedroom unit sold to the buyer for $2.85 million ($2,188 per square foot) in June. This is higher than the previous record which was set on March 9 when a 1,948 sq feet unit was purchased to the tune of $4.25 million ($2,181 per square foot).

Sommerville Park is a freehold project located situated on Farrer Drive. The sprawling 855,571 square foot construction was completed by the year 1985 and includes 396 condo units as well as 57 strata landed homes. Condo units are situated within four tower blocks that vary from one- to three-bedders. Landed units are a mixture of two-storey maisonettes and townhouses.

The location of the condo is ideal, putting it within the exclusive residential areas, such as Holland Park, the Good Class Bungalows along Gallop Road, Cluny Hill as well as Holland Park, as well as the condos along Leedon Road and amenities in Holland Village and Dempsey Road.

Based on an amalgamation of caveats prepared of EdgeProp Singapore, Sommerville Park currently commands an average of $1,996 for a psf.

In The Beauty World neighbourhood in District 21 The sub-sale of an apartment on the ground floor, with five bedrooms established a new record for psf prices for View at Kismis. The 1,270 square foot unit was bought at $2.55 million ($2,008 per square foot) on June 27. This was the first time that a unit from the unfinished project was sold at a price higher than $2,000 per square foot.

The previous high psf price was derived from the sub-sale an area of 667 square feet in a two-bedder at $1.31 million ($1,963 per square foot) in March 2.

View Kismis is an 99-year leasehold condominium on Lorong Kismis. The 186-unit development is developed jointly through Roxy-Pacific Holdings and Tong Eng Group that began construction in July of 2019. The developers sold around 30 units, with an average of $1,600 when they launched the project. As per developer sales figures, View at Kismis was completely sold by the end of October 2021 at an average price of around $1,976 psf.

The property is surrounded by a number of three-storey mixed land estates located off Lorong Kismis and Toh Tuck Road It is also near the Beauty World MRT Station on the Downtown Line.

The neighborhood will renewed after Far East Organization completes its integrated project, The Reserve Residences comprising 732 units of residential housing as well as 160 serviced apartments and a brand-new three-storey mall, which is linked with Beauty World Station. It is estimated that the Reserve Residences sold 520 condo units during the sales opening weekend on May 27-28. Based on the developer the average price was $2,460 per square foot.

The price of psf was not lowered for the week under the review.

Read more: The present floor space of the shophouses is 10,318 square feet

The purchase of a 1,227 sq ft three-bedroom apartment in Goodwood Grand for $3.55 million ($2,892 per square foot) in June was the top of the list of recent psf-price highests between June 16 and June 23. The previous record price for psf of Goodwood Grand had only been set on April 20 of this year, when a three bedder similar to the one that was sold was sold at $3.45 million ($2,812 per square foot).

Goodwood Grand Goodwood Grand a freehold condominium located situated on Balmoral Road in prime District 10. A joint venture of Tong Eng Group (50%) The Ng Family of Clarus Corp (20%) and mainboard-listed construction company Tiong Seng Holdings (30%) The development was completed in the year 2017.

The 75-unit development includes 65 condo units within seven 13-storey blocks as well as eight bungalows in strata. The condos comprise made up of two to four-bedroom units that range from 775 sq ft up to 3,111 sq ft. bungalows range located between 5,167 square feet to 5,479 sq feet.

A mixture of high-end luxury condos as well as landed housing Enclaves are the hallmark of Balmoral Road. Balmoral Road neighbourhood. The nearby Freehold development comprise Volari located on Balmoral Road, Balmoral Crest, Balmoral Spring and Goodwood Gardens on Balmoral Crescent. Landed homes in the vicinity comprise Goodwood Hill and the Good Class Bungalows located at Nassim Road and White House Park.

Based on URA restrictions, Goodwood Grand recorded a rise in sales following the completion of the project in June. The project was only 44% from the entire project was sold in the previous month and sales increased significantly over the next three months, resulting in an overall taking-up of 85% in August 2017.

One of the most costly condo units in Goodwood Grand was a 3,111 square feet, four-bedroom unit located on the 12th floor. It was offered by developers to the developer for $6.5 million ($2,089 per square foot) on March 14, 2014. It was followed by the 2,142 sq ft three-bedroom unit located on the 12th floor, which was auctioned off at $4.69 million ($2,190 per square foot) at the time that the developer was able to sell it in October of 2017.

The biggest strata bungalow in Goodwood Grand, measuring 5,479 sq feet it was purchased in the month of June for $7 million ($1,278 per sq ft). Two additional bungalows measuring 5,231 square feet have sold for $6.95 million ($1,329 per sq ft) both when sold during the month of October in 2017.

In the secondary market Goodwood Grand commands the highest median price for condos in the Balmoral region, which is around $2,771 per square foot. The average price at Volari, Balmoral Crest and Goodwood Gardens were $2,493 psf 2,004 psf and 2,233 per sq ft and $2,233 psf, respectively. The just finished Sloane residences located on Balmoral Road fetched an average cost of $2,859 per sq ft.

The building that scored the second-highest psf-price that week is Adria which is a boutique condominium situated on Derbyshire Road in Novena. A two-bedroom, 850 square feet unit was purchased to a buyer for $1.85 million ($2,171 per square foot) on the 21st of June. This is higher than the previous psf price highest at Adria that was recorded just four months earlier when a 1,302 square foot 3-bedroom apartment was bought at $2.6 million ($2,002 per square foot) on Feb. 16.

Adria can be described as an 105-unit condominium that was built in 2015. It is a single 19-story residential tower that is comprised of one-to four-bedroom apartments that range between 538 square feet to 1,496 square feet.

The property is situated within the Novena district, which is adjacent to St. Joseph’s Institution Junior on Essex Road. The condo is located close to the main shopping malls in the vicinity, including United Square and Novena Square located at Thomson Road, Square 2 located at Sinaran Drive and Royal Square located at Irrawaddy Road. It is also near Health City Novena, between Moulmein Road and Irrawaddy Road which is a planned healthcare district that will include Tan Tock Seng Hospital at Jalan Tan Tock Seng, Ren Ci Hospital at Irrawaddy Road and various healthcare facilities. The area is well connected with Newton Road, Moulmein Road and Thomson Road, while the closest station can be found at Novena MRT Station on the North-South Line.

Based on a calculation of resale-related caveats compiled by EdgeProp Singapore, the median price at Adria has been constant over the last few years, ranging from $1,854 in July 2020 to $1,909 per SF this month.

However the property has a good rental yield and leases that range between $3.70 psf/month (pm) up to $6.90 per square foot pm. The condo has an average rent of $5.50 per sq ft, which translates into a rental yield of around 3.2%. The rental transactions of this year reveal that units were let for a range of $3,600 a night ($6.55 per sq ft) up to $4500 per hour ($6.92 per square foot).

Adria’s investment focus Adria is evident in its ownership structure, that, according to records of purchases is comprised of 54% residents as well as 37% foreigners. The remainder being held by permanent residents as well as businesses.

In the meantime, the purchase of the 743 square feet, two-bedroom condo in Botanique at Bartley set a new highest for the condominium when it was purchased at $1.5 million ($2,020 per square foot) on the 19th of June. It’s the first time that a property that was resold at Botanique at Bartley has been sold at a price of more than $2,000 per square foot. Prior to this, the most expensive unit was 732 sq. ft two-bedder which was purchased at $1.34 million ($1,828 per square foot) on September 12 this year.

Botanique Bartley is an 99-year leasehold condo located situated on Upper Paya Lebar Road in Serangoon in District 19. The condo was built by the mainboard-listed property group UOL which finished 797 units in the year 2019. The development includes one- to three-bedroom apartments that range from 495 sq ft to 1,270 square feet.

The property’s Bartley location is within easy access to neighbourhood hubs as well as railway stations. Botanique located at Bartley is just 200 meters away from Bartley MRT Station located on the Circle Line One station away from Serangoon MRT Interchange Station on the North-East and Circle Lines. Other stations nearby are Tai Seng MRT Station on the Circle Line and Woodleigh MRT Station on the North-East Line.

In the last two years, the resales prices for Botanique in Bartley have increased from $1,568 per square foot in July 2021, to $1,732 psf in July.

Read also: The four-room apartment has 49 years remaining on its 99-year lease on the fourth floor of a walk-up apartment complex

In the basement of a shophouse on the intersection of Desker Road and Serangoon Road, an eatery known as Usman’s has a steady business. The restaurant with no frills is in operation for more than 20 years and serves Indian dishes as well as Pakistani dishes such as Butter naan with garlic chicken masala and tandoori chicken.

Usman’s customers comprise a broad variety of people ranging from tourists who are taking breaks for lunch while they take in the sights of Little India, to locals after a trip to shop in the adjacent Mustafa Centre on Syed Alwi Road. The entire area is bustling as people walk through the numerous businesses located in the old shophouses with conservation lining Desker Road and the neighbouring Rowell Road, which runs across Serangoon Road on one end to Jalan Besar on the other.

The shops offer a diverse range of services, perhaps reflecting the shophouses’ position that are located between those of the Little India and Jalan Besar areas. The side that is close towards Serangoon Road, customers will find restaurants wholesale stores offering food and other products, barber shops, and gadget stores for handphones. Nearer in is the Jalan Besar side However, newer and more trendy establishments are popping up, like Japanese Ikigai’s Yakitori restaurant, French bistro Allo, and sourdough-based pizza shop Goldenroy. The upper floors in some shops have been renovated and are now home to companies like the Advertising agencies Zoo Group and marketing consultancy That Marketing Guy.

Sammi Lim, founder and executive director of Brilliance Capital, says shophouses on the Desker Road-Rowell Road stretch are experiencing a growing demand from businesses who want lower rents than shops in the CBD. This is also true for investors. “Given the cost of CBD shops, investors are increasingly looking into city-fringed areas that have a greater growth potential,” she says.

A collection of nine conservation shophouses with freehold between Desker Road and Rowell Road is available for sale via an auction that will end on the 15th of August. The portfolio, which has a mix of two-storey and two-storey-with-attic shophouses, occupies a total land area of 10,557 sq ft and a built-up area of 22,898 sq ft. Lim, who is handling the sale, says the shophouses are being sold collectively with a guide price of $66 million, or $2,882 psf on the built-up area.

Recently renovated, fully-leased units
The portfolio includes six units along Desker Road — five are shophouses that adjoin 99-107 Desker Road and another shophouse is situated across on the same street, at Desker Road. The remaining three shops are located on Rowell Road, comprising an adjacent pair of properties at 81 and Rowell Road and another property located at 99 Rowell Road.

The shophouses, each with its own titles to land are commercially zoned in the URA 2019 Master Plan and are located in District 8 of the Little India Conservation Area in District 8. The shophouses are just 10 minutes walk to the Jalan Besar (Downtown Line) and Farrer Park (North-East Line) MRT Stations.

Lim claims that the buyer of the portfolio is an investment company in real estate connected to an office of the family and is looking to sell the properties in the capital recycling strategy. Caveats filed by URA Realis show that except for 101 Desker Road (which did not have a caveat filed however the property title search indicates that the property changed ownership on June 20, 2022) The shophouses within the portfolio were acquired by way of various trades in 2021.

The year before the 81 and that year, 81 and Rowell Road were acquired for $9.4 million in May. Meanwhile, 99 101, 103 101, 105, as well as the 106 Desker Road changed hands in July, with the shops being valued somewhere between $3.1 millions and $3.8 million for each. The shophouse on 99 Rowell Road was purchased for $3.2 million in August 2021. It was and then the shophouse at 107 Desker Road for $3.13 million the following year in the month of October.

Lim says that the seller has done extensive repairs to the units prior to leasing the properties. Shophouses in all are currently let, as well as the entire portfolio is set to be sold along with the current tenancies. Lim believes that the portfolio is currently offering gross rental yields of about 2% but she also notes that rents can increase since the majority of leases were signed prior to the pandemic and scheduled to renew within one up to 2 years.

Unique tenant mix
The shophouses that make up the portfolio are currently lease to a range of tenants. 99 and 101 Desker Road are occupied by construction contractors and a cat-friendly hotel respectively, and the 103 Desker Road is tenanted by an eatery that is vegetarian. The 105 Desker Road houses art gallery and a studio for ceramic art the 7879 Gallery & Clayworks on the ground floor as well as an animal cafe on the upper floors. On the 106 Desker Road, an artisanal gelato store called Aphrodite is rented out on the ground floor and a pet hotel called T&J Cat Inn, is located at the top floors. A martial arts-themed cafe occupies 107 Desker Road.

On Rowell Road, the ground floor of 81 Rowell Road houses a cafe and art space called Main Street Commissary. miniart and a liquor shop occupies the ground floor next to it at 85 Rowell Road. Upper floors in both shops are leased to an agency for creatives that operates Main Street Commissary. The 99th floor of Rowell Road, which is currently being renovated, a pale yellow façade announces the upcoming debut of Candy Monster in August.

The diverse tenant mix was deliberately developed, Lim says. “The seller had a strict selection of the tenants they chose for their properties in order to present unique and intriguing ideas.” In the end, the aim was to improve the profile of the area in conjunction with the ongoing revitalization of the area around it.

Advantage of the first mover
Desker Road and Rowell Road have seen significant changes in the past decade. Prior to that, both streets had a shadier image as a red-light zone similar to Geylang and the adjacent Jalan Besar region.

In the past However, a lot of the vices in the area are now gone, particularly since the government has taken action against illegal brothels, and the scourge of disease has hampered criminal activities. Desker Road and Rowell Road have been cleaned and are still evolving as the shops along these roads are flooded with of new tenants and owners.

In the month of January, 2021 there’s been 27 transactions of shophouses that took place on Desker Road and Rowell Road Based on caveats that were lodged. The most recent transaction took place this month, when a shophouse located at 21 Rowell Road fetched $5.2 million. Prior to that the shophouses on 107 and 109 Rowell Road was sold for $13.5 million in April.

Brilliance Capital’s Lim believes that the ongoing revitalization of the area as an identical path to the change that has been taking place in other historic street shops like Amoy Street in Chinatown and Tras Street in Tanjong Pagar, which have witnessed an increase in gourmet eateries and cafes. “This is a thriving neighborhood that is becoming more sought-after in the process of becoming a flourishing commercial, cultural and culinary location,” she says.

The buyer who will purchase the portfolio for sale will have advantages of first-mover that allow them to benefit from the potential of the region for rental and capital growth, Lim says. She views the portfolio’s recommended price of $2,882 per square foot as a desirable price point for a portfolio of commercial freehold assets located in the city’s fringe.

She anticipates interest from a variety of investors from both overseas and local institutions, corporates, family offices, private funds and ultra-high-net worth individuals. “The size of the portfolio gives the buyer the flexibility to lease out the units to a range of companies subject to approval from government authorities” the agent says. The five adjacent shophouses located on Desker Road also have the possibility of being converted into housing, for example, co-living spaces or a apartments that are serviced.

Lim adds that the potential buyer has the option of holding the property in the long run and benefit from the portfolio’s capital appreciation and an enduring rental yield while having the possibility for selling shophouses in a group or separately.

In the meantime, as Desker Road and Rowell Road continue to change, Lim believes that the potential of the areaand, consequently, the portfolio evident for investors. “This is a chance investment opportunity in Singapore’s most sought-after and thriving neighborhoods.”