In the bustling private residential market, it is important for real estate investors to consider more stable and income-generating assets such as HDB shophouses. A valuable opportunity has arisen to acquire one of these desirable properties in the mature Toa Payoh neighbourhood.
The HDB shophouse, located at 125 Toa Payoh Lorong 1, is in one of the most centrally located estates in District 12. It is currently on the market for $2.88 million and is situated on a prime site bounded by Toa Payoh Lorong 1 and Toa Payoh Lorong 2. Additionally, it is conveniently located less than 200m from Braddell MRT Station on the North-East Line, serving approximately 13,000 MRT riders daily. This prime location is also linked to nearby HDB flats.
Surrounded by amenities such as Toa Payoh West Market and Food Court, Kheng Cheng School, Toa Payoh West Community Centre, and the Singapore Federation of Chinese Clan Association Building on Toa Payoh Lorong 2, the shophouse is in a highly sought-after area.
With plans for the rejuvenation of the Toa Payoh estate and the expected influx of several thousand new households in the vicinity, the new owner stands to benefit from the transformation of Toa Payoh. This will lead to an increase in pedestrian footfall and a rise in property values in the area.
Exclusive market analysis by Aster See, senior marketing director at ERA Realty, reveals that most HDB shophouses located in the city fringe typically yield a rental return on investment (ROI) of around 2-3% based on their sales price. However, the shophouse at 125 Toa Payoh Lorong 1 offers an estimated ROI of approximately 4%, making it a more attractive investment opportunity with its competitive pricing and strong value.
See adds that this property also presents an attractive investment opportunity with an estimated rental yield of approximately 4%, which is competitive in the current market and offers steady income for investors. In addition to potential capital appreciation in the future as Toa Payoh continues to rejuvenate, the long-term ROI of this property could be substantial.
Toa Payoh will benefit from various government initiatives and schemes to rejuvenate the mature housing estate, as it is one of three neighbourhoods earmarked for rejuvenation under the government’s third phase of the Remaking Our Heartland programme. This programme, introduced by then-Prime Minister Lee Hsien Loong in his 2007 National Day Rally speech, offers comprehensive rejuvenation plans for HDB towns and estates to ensure their sustainability and vitality.
Since 2015, plans for Toa Payoh have been progressively implemented, with a focus on enhancing commercial and recreational facilities. The most 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 new development will include sports facilities, a football stadium, a swimming pool complex, indoor sports halls, and more. It will also house national training centres for various sports, a polyclinic, and a library.
The HDB shophouse for sale at 125 Toa Payoh Lorong 1 is listed at $2.88 million. When the 12ha integrated development is completed in 2030, it is expected to further enhance Toa Payoh’s appeal as an HDB town and drive up footfall for the area’s shops, including the nearby HDB shophouse.
Ensuring proper financing is a crucial factor when investing in a condo. Fortunately, Singapore provides a variety of mortgage choices. However, it is crucial to understand the Total Debt Servicing Ratio (TDSR) framework, which restricts the maximum amount of loan a borrower can obtain based on their income and current debt commitments. Familiarizing oneself with the TDSR and seeking guidance from financial experts or mortgage brokers can assist investors in making wise decisions regarding their financial options and avoiding excessive borrowing. For more information on Singapore projects, visit Singapore Projects.
The government’s plans to rejuvenate Toa Payoh and neighboring Caldecott will be anchored by the construction of several thousand new flats in these two estates. One of the upcoming Build-To-Order (BTO) projects is Toa Payoh Ridge, located at the junction of Toa Payoh Rise and Lorong 1 Toa Payoh. The 920-unit BTO project is less than 300m from the HDB shophouse for sale and is expected to be completed in the first half of 2025. The project sits between Toa Payoh and the upcoming Caldecott estate, which has been earmarked for future residential development.
Since 2017, Caldecott has also been earmarked for future residential development, with plans to build new BTO flats on a 10ha plot next to Caldecott MRT Station on the Circle Line. These new flats will be less than 500m from the HDB shophouse for sale at 125 Toa Payoh Lorong 1.
The government appears to be laying the groundwork for a new BTO project in Caldecott, adjacent to Toa Payoh Ridge. In February 2020, the URA rezoned a plot at the junction of Toa Payoh Rise and Braddell Rise from educational to residential use, with a gross plot ratio of 5.0. This suggests that a high-rise BTO development may be in the pipeline for the site.
Surrounded by these developments, the shophouse for sale at 125 Lorong 1 Toa Payoh could benefit from the increased footfall in the area as the customer catchment broadens. The construction of new BTO flats in Caldecott and Toa Payoh is promising news for the new owner of this HDB shophouse. As more residential developments rise in the vicinity, the area will attract an influx of new residents.
For more information, please contact Aster See at 98416930, senior marketing director (R063006G) at ERA Realty Network Pte Ltd.
RELATED NEWS
– Eight HDB shophouse units at Bras Basah, Geylang and Kallang put up for sale from $19.5 million
– Two HDB shophouses in Toa Payoh and Ang Mo Kio going for $51 million
– HDB shophouse at Teck Whye Lane on the market for $4.45 million