A 99-year leasehold HDB shophouse at 214 Serangoon Avenue 4 will be available at the upcoming auction by SRI on Feb 26. The two-storey shophouse has a living quarters on the second floor and a total floor area of approximately 1,668 sq ft. The property is listed with a guide price of $1.98 million, equivalent to $1,187 psf on the floor area. This property was previously listed at a higher price of $2.08 million at SRI’s last auction, but did not find a buyer as it is a mortgagee sale.
According to Jansen Kee, assistant manager of auctions at SRI, the shophouse enjoys a prominent frontage in front of a bus stop, providing excellent visibility from the road. Currently tenanted, the shophouse generates a gross rental yield of approximately 6.2% based on the guide price, says Kee. The unit will be sold with its existing lease, which expires in 2026, providing the new owner with immediate rental income.
Kee notes that the guide price for the HDB shophouse is one of the lowest in the area, making it an attractive value proposition for both investors and owner-occupiers. According to URA records, the most recent commercial shophouse transaction in Serangoon was the sale of a 999-year leasehold shophouse along Lichfield Road for $4 million ($1,725 psf) in November 2024. The shophouse up for auction is situated in a cluster of HDB flats bordering the Serangoon Gardens landed residential area. It is directly across the road from Serangoon Swimming Complex and Serangoon Sports Centre, providing a steady flow of foot traffic to the area. There are parking lots available behind the shophouse.
Serangoon Gardens is an established and sought-after residential estate with a mix of landed properties and HDB flats. It has a unique blend of amenities and facilities including good schools, shopping centres and recreational options, making it an attractive location for both investors and homebuyers. The buyer profile for properties in this area is diverse, with both locals and foreigners looking to own a piece of this prime real estate. The price trend for properties in Serangoon Gardens has been on an upward trajectory in recent years, with resale condos commanding higher prices than new sale units in the area. The rental yield for properties in Serangoon Garden is also attractive, making it a popular choice among investors. The development of Serangoon Garden Estate was completed in the 1970s, and it remains a highly sought-after residential location, with new developments and amenities constantly being added to the area.
In Singapore, there is a significant and growing demand for condos due to the limited land availability on the small island nation. With a rapidly increasing population, land is a scarce resource, resulting in strict land use regulations and a highly competitive real estate market. As a result, property prices are continually rising, making investing in real estate, especially condos, a lucrative opportunity for potential buyers. With the promise of appreciating capital value, the recent surge in new condo launches adds to the attractiveness of these properties as an investment option.