Two shophouses along Dunlop Street sold for $7.6 mil at auction, North Gaia developer pending approval for auction sales as well
Two shophouses along Dunlop Street sold for $7.6 mil at auction
Two shophouses located at 77 and the 79 Dunlop Street were auctioned off for $7.6 Million at Knight Frank’s auction on the 22nd of July. The pair of leasehold 999-year properties were offered at a guide price at $8.9 million. They were initially advertised in June of this year. The North Gaia EC remaining units is a new development located in Yishun Ave 9. The total land size is approximately 21,518.8 square metres with a maximum gross floor area (GFA) of 60,240 square meters. The project is estimated to have a total of 600 units. It was approved for development seven years ago and is situated near Yishun MRT station.
The properties are located in The Little India Conservation Area and are located on a 2687 square feet plot classified as “commercial” under the 2019 Master Plan. Two storeys of shophouses cover an overall gross floor space of approximately 4,500 square feet.
The purchase cost of $7.6 million is equivalent to $1,689 psf for the floor area.
Both shophouses are fully leased. The ground floor unit at 77 Dunlop Street is let to a convenience store called 7-11 store, while the ground floor unit is leased to a supply shop. The second-floor office space has been combined and also leaseable.
The property was initially listed for sale in the early 2000s, office space was rented for $2300 per month in contrast, the ground floor units were rented at a monthly total of $10,150.
The most recent shophouse sale that took place on Dunlop Street was for 105 Dunlop Street, another 999-year leasehold property that was sold for $3.9 millions ($3,276 per square foot) on January 12 2021. The shophouse in the nearby area located at 64 Dunlop Street fetched $3.1 million ($935 per square foot) as it was auctioned off on December 9, 2020. Similarly, the 80 Dunlop Street was transacted for $3.6 million ($3,835 per sq. ft.) on the 14th of October 2020.
Based on Sharon Lee, head of auctions at Knight Frank, there were at the very least two buyers who contacted the auctions team with a serious intention of purchasing both shops by the time for the auction. She also says that the final sales price for both shophouses is “quite good”.
Knight Frank’s auction also included an auction for a 1 044 square feet corner shop at 70 Seng Poh Road for $3.2 million ($3,065 per sq ft). The property was sold with an estimated guide price of $2.8 million ($2,682 per square foot) it was also an estate sales.
The leasehold property with a leasehold tenure of 95 years has a tenure remaining of approximately 43 years. It is located at Eng Watt Street and Seng Poh Road. It also faces to the Tiong Bahru Market and Food Centre.
Lee states that the property was the subject of an extremely high level of interest from buyers during the weeks leading up to the auction, despite the very short remaining tenure. The property received an initial price that was $2.5 million ($2,395 per sq ft) The majority of the bids from two bidders.
Lee admits to being slightly surprised by the fact that the there was a lot of competition for the shop was able to result in a higher sale price when compared to the price of the guide. But she also says that properties with a heritage feel sought-after and rarely offered for auction, particularly located in areas like the Tiong Bahru area.
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