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A shophouse located at 214 Serangoon Avenue 4 and leased for 99 years by HDB will be up for auction at the next SRI event on Feb 26. The two-storey shophouse offers living quarters on the second floor and a total floor area of about 1,668 sq ft. This property has a guide price of $1.98 million, which translates to $1,187 psf on the floor area.
This is the second time the property will be featured at an SRI auction, with the previous attempt held last month with a higher guide price of $2.08 million but did not result in a sale. Assistant manager of auctions at SRI, Jansen Kee states that the shophouse holds a prime location in front of a bus stop, making it highly visible from the road.
The shophouse is currently tenanted and is generating a gross rental yield of approximately 6.2%, based on the guide price, explains Kee. The unit will be sold with its existing lease, which is due to end in 2026. This provides the new owner with immediate rental income.
Investing in a Singapore condo is a major decision, and it involves more than just purchasing the property. One crucial aspect to consider is the maintenance and management of the condo. Typically, condos come with maintenance fees that cover the upkeep of common areas and facilities. While these fees may increase the overall cost of ownership, they also guarantee that the property remains in good condition and maintains its value. To make it a more passive investment, investors can enlist the help of a property management company to handle the day-to-day management of their condo. This way, they can ensure that their investment is well-maintained and taken care of while they focus on other matters.
Kee also notes that the listed guide price for the HDB shophouse is among the lowest in the area, making it an attractive investment 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 in November 2024. The two-storey property spanned a land area of 2,319 sq ft and fetched $4 million ($1,725 psf).
The property up for auction is situated within a cluster of HDB flats near the Serangoon Gardens landed residential estate. It is directly across the road from Serangoon Swimming Complex and Serangoon Sports Centre, which brings a steady stream of foot traffic to the area. Carpark lots are available behind the shophouse.