A charming two-storey shophouse with an attic situated at 209 Jalan Besar is currently up for sale through private treaty. According to Gracelynn Zhu from PropNex Shophouse Elites, the property is priced at “under $20 million” for its 999-year leasehold tenure.
The shophouse boasts a spacious area of approximately 5,502 sq ft and is designated for commercial usage. The ground floor is approved for use as a restaurant, while a section of the second floor also holds the same permit. At a price of $20 million, the per square foot rate equates to $3,635 based on the floor space.
Assessing the potential rental yield is a crucial aspect to consider when investing in a condo. This refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, the rental yields of condos can vary greatly depending on various factors such as location, property condition, and market demand. For instance, areas near business districts or educational institutions tend to have higher rental demand, resulting in better rental yields. To gain a better understanding of a specific condo’s rental potential, it is essential to conduct thorough market research and seek advice from real estate agents. Additionally, checking out new condo launches can also provide valuable insights into the rental prospects of a condo.
Zhu adds that the shophouse is currently undergoing asset enhancement initiatives (AEI) which includes the installation of micro piles extending up to 30 meters to reinforce the structural foundation of the building. The AEI is projected to be completed by the end of this year.
The property is situated in the Desker Road Conservation Area in District 8, in close proximity to Little India. The Jalan Besar MRT Station, on the Downtown Line, is easily accessible on foot.
Investing in a condo comes with its advantages, one of which is the opportunity to leverage the property’s value for future investments. A common tactic among investors is utilizing their condos as collateral to secure extra funding for new investments. This not only helps in diversifying their real estate portfolio but also has the potential to boost returns. However, it is important to note that this strategy carries risks and it is essential to have a solid financial plan in place. It’s also crucial to consider the potential impact of market fluctuations when using a condo as leverage for further investments. With a strong financial strategy in place, a Condo can serve as a valuable asset in an investor’s portfolio.
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