An HDB shophouse at 214 Serangoon Avenue 4 with a leasehold of 99 years will be offered at SRI’s upcoming auction on Feb 26. The two-storey shophouse, which includes living quarters on the second floor, has a total floor area of approximately 1,668 sq ft. It has been listed with a guide price of $1.98 million, equivalent to $1,187 psf on the floor area.
This is the second time the property will be on auction as it was previously listed last month with a higher guide price of $2.08 million but did not find a buyer. According to Jansen Kee, assistant manager of auctions at SRI, the shophouse is in a prime location in front of a bus stop, providing it with excellent visibility from the road.
The property is currently tenanted and generating a gross rental yield of about 6.2% based on the guide price, says Kee. He also mentions that the shophouse will be sold with its existing lease, which expires in 2026. This will immediately provide the new owner with a steady rental income.
Kee points out that the listed guide price for this HDB shophouse is one of the lowest in the area, making it an attractive investment opportunity for both investors and owner-occupiers. Records from URA show that the most recent commercial shophouse transaction in Serangoon was the sale of a 999-year leasehold shophouse on Lichfield Road. The two-storey property had a land area of 2,319 sq ft and sold for $4 million ($1,725 psf) in November 2024.
The shophouse up for auction is located within a cluster of HDB flats bordering the Serangoon Gardens landed residential estate. It is directly across the road from Serangoon Swimming Complex and Serangoon Sports Centre, bringing in consistent foot traffic to the area. There is also a carpark behind the shophouse. Interested buyers can check out the latest listings for Serangoon Garden Estate properties on Buddy. Some of the features of this area that buyers may want to consider are:
– Buyer profile: According to data from Buddy’s AI technology, the top three buyer profiles for Serangoon Garden Estate are young couples, HDB upgraders, and families.
– Price trend: The price trend chart on Buddy shows an increasing trend for Serangoon Garden Estate properties in the last five years.
– Rental yield: The rental yield for Serangoon Garden Estate is around 2.9%, based on data from Buddy’s AI technology.
– Completion year: Most properties in Serangoon Garden Estate were completed in the 1980s and 1990s, with recent developments in the last 10 years.
One of the main benefits of Singapore condo investments is the potential for capital appreciation. Singapore’s prime location as a global business hub, combined with its robust economic fundamentals, leads to a consistent demand for real estate. Throughout the years, property values in Singapore have displayed a reliable upward trend, particularly for condos in sought-after locations. As a result, investors who enter the market at the opportune moment and retain their properties for an extended period can reap significant gains in their capital. With Singapore Condos as a solid investment option, individuals can take advantage of the city-state’s thriving property market.
Overall, the HDB shophouse at 214 Serangoon Avenue 4 offers a good value proposition for buyers, with its strategic location, existing lease, and potential for rental income. Interested buyers can consider this property as a viable investment opportunity in the desirable Serangoon Garden Estate.