A highly sought-after 99-year leasehold HDB shophouse in the bustling area of 214 Serangoon Avenue 4 will be available for auction at SRI’s upcoming auction on 26 February. The two-storey shophouse features living quarters on the second floor and has a total floor area of about 1,668 sq ft. It has been listed with a guide price of $1.98 million, which translates to approximately $1,187 psf on the floor area.
This is the second time that this property will be auctioned by SRI, with the previous attempt having a higher guide price of $2.08 million, but no buyers were found. According to Jansen Kee, assistant manager of auctions at SRI, the shophouse enjoys a prime location in front of a bus stop, providing it with excellent visibility from the road.
The current shophouse is currently tenanted and is generating an estimated gross rental yield of 6.2%, based on the guide price, according to Kee. He further explains that the unit will be sold together with its existing lease, which is set to expire in 2026. This means that the new owner will immediately earn a steady stream of rental income after the purchase.
Kee notes that the listed guide price for this HDB shophouse is one of the lowest for this type of property in the area, making it an attractive value proposition for both investors and owner-occupiers.Through URA records, the most recent commercial shophouse transaction in Serangoon was a 999-year leasehold shophouse situated along Lichfield Road. The property, which comprises of two storeys and spans a land area of 2,319 sq ft, was sold for $4 million ($1,725 psf) last month.
The auctioned shophouse is located within a cluster of HDB flats near the Serangoon Gardens landed residential estate and directly across the road from the Serangoon Swimming Complex and Serangoon Sports Centre. This provides the area with a constant flow of foot traffic. Car park lots are available behind the shophouse. Those interested can also compare the prices and rental yields of other properties in the Serangoon Garden Estate area using the Ask Buddy feature on 99.co.