The sale of a pair of conservation shophouses located at 6 and 7 Perak Road has recently been announced with a guide price of $13 million. This translates to $2,425 psf on the total floor area, amounting to a total of 5,360 sq ft. The 11.4m-wide properties occupy a land area of approximately 2,870 sq ft, and enjoy a convenient location only a three-minute walk from Rochor MRT Station. With a well-maintained interior and external features, the current owner has reportedly been receiving multiple offers from prospective tenants seeking to rent the premises.
Currently approved for usage as a backpackers’ hostel, the properties may attract interest from investors in the tourism sector eager to tap into the renewed interest for conveniently located accommodation. Furthermore, with the absence of a buyer’s stamp duty payment and the potential for strong rental and capital growth, the shophouses can provide a prospective buyer with a solid investment opportunity.
Gracelynn Zhu of PropNex Shophouse Elites, which is marketing the property, believes the current market conditions could result in a gross rental yield of over 3%. The tender for the property will close at 3pm on May 8.
Recent sales of properties on Perak Road could offer a glimpse into the market of the area. With this in mind, those interested in the shophouses may wish to further investigate the performance of properties in the vicinity. EdgeProp Research Tool is a great place to start for such details.
At the end of the day, the shophouses at 6 and 7 Perak Road are worth considering for those hoping to make a sound investment in the district.