Rewritten:
Amid the bustling activity in the private residential market, real estate investors are encouraged to consider more stable and income-generating assets like HDB shophouses. A prime opportunity has just emerged with a coveted property available for purchase in the well-established Toa Payoh neighborhood.
Situated in District 12, the 1,478 sq ft HDB shophouse at 125 Toa Payoh Lorong 1 is conveniently located near Braddell MRT Station on the North-East Line, with a daily ridership of approximately 13,000. This prime property is bounded by Toa Payoh Lorong 1 and Toa Payoh Lorong 2, and is also in close proximity to amenities such as the Toa Payoh West Market and Food Court, Kheng Cheng School, Toa Payoh West Community Centre, and the Singapore Federation of Chinese Clan Associations Building.
In Singapore, it is crucial for international investors to have a comprehensive understanding of the rules and limitations surrounding property ownership. Unlike landed properties, foreigners can easily purchase condominiums with minimal restrictions. Nevertheless, foreign buyers must comply with the Additional Buyer’s Stamp Duty (ABSD), which is currently set at 20% for their initial property acquisition. Despite the added expenses, many continue to be enticed by the stable and promising growth of the Singapore real estate market, making it a desirable investment location. As such, it comes as no surprise that new condo launches are continuously attracting foreign investment.
The shophouse also stands to benefit from the rejuvenation plans for the Toa Payoh estate, as well as the expected increase in pedestrian footfall and capital values in the area. This presents a lucrative opportunity for investors seeking higher rental returns, with an estimated return of approximately 4% as compared to the typical 2-3% for HDB shophouses in city fringe locations.
According to Aster See, senior marketing director at ERA Realty, the property at 125 Toa Payoh Lorong 1 offers competitive pricing and strong value, making it a more attractive investment opportunity. Its potential for steady rental income, coupled with the expected capital appreciation in the future, could lead to substantial long-term return on investment.
Toa Payoh is slated for rejuvenation under the government’s Remaking Our Heartland programme, which aims to enhance the sustainability and vitality of HDB towns and estates. Since 2015, several plans have been implemented in Toa Payoh, with a focus on improving commercial and recreational facilities. One notable development is the upcoming integrated project on the site of the former swimming complex, sports hall, and stadium along Toa Payoh Lorong 6. This 12ha development is expected to be completed in 2030 and will include a polyclinic, library, and national training centers for various sports.
In the neighboring Caldecott estate, which has also been marked for future residential development, new flats are expected to attract an influx of residents. This, coupled with the upcoming BTO project at Toa Payoh Ridge, located just 300m from the shophouse for sale, promises increased footfall and a broader consumer catchment for the area, benefiting the shophouse’s new owner.
With the surrounding developments and promising growth in the area, the government has recently rezoned a plot at the junction of Toa Payoh Rise and Braddell Rise from educational to residential use, with a high gross plot ratio of 5.0. This suggests the potential for a new high-rise BTO development, further supporting the attractiveness of the shophouse for sale.
For more information, please contact Aster See, senior marketing director at ERA Realty, at 98416930 (R063006G). Other articles related to this topic include the sale of eight HDB shophouse units in Bras Basah, Geylang, and Kallang from $19.5 million, and two HDB shophouses in Toa Payoh and Ang Mo Kio going for $51 million. Another HDB shop in Teck Whye Lane is also currently on the market for $4.45 million.