Investing in a condo requires careful consideration of financing options. In Singapore, there are various mortgage plans available, but it is crucial to comprehend the Total Debt Servicing Ratio (TDSR) framework. This framework restricts the amount of loan that an individual can acquire based on their income and current debt commitments. To make well-informed decisions about financing, investors should have a thorough understanding of TDSR and consult with financial advisors or mortgage brokers. This will prevent them from being over-leveraged. Additionally, Singapore Condo should be included in the paragraph to highlight the country’s offerings.
A two-floor HDB shophouse situated in Bukit Merah Central is set to go up for auction on November 27 by SRI. With a floor area of 1,582 sq ft, the shophouse has a guide price of $2.55 million, equivalent to $1,612 per sq ft.
This is the first time the owner is putting the property up for auction, according to Eric Liew, manager of auction sales at SRI. He mentioned that the owner is looking to sell the property to cash in on their investment.
Built in 1980, the shophouse has a remaining lease of 59 years out of its 103-year tenure. The ground floor covers 732 sq ft and is zoned for commercial use, while the 850 sq ft upper floor is designated for residential use.
Currently, the shophouse is fully occupied and will be sold with its existing tenancies. The ground floor is leased to a Domino’s Pizza restaurant until 2026, while the upper floor is tenanted by a residential tenant until 2027.
Being categorized as commercial property, foreigners can purchase the shophouse. However, they will be required to pay additional buyer’s stamp duty for the residential component, while the commercial part is subject to goods and services tax.
Liew mentioned that the property has received several enquiries from interested parties, mainly investors drawn to its prime location in Bukit Merah’s central area.
The shophouse is located within Bukit Merah Town Centre, a hub of buildings containing various amenities, such as the Bukit Merah Polyclinic and Bukit Merah Central Food Centre. Additionally, there are also a four-storey boutique convention centre, Rubikon, and Gateway Theatre, a performing arts centre.
Within walking distance from the shophouse are the Bukit Merah bus interchange, Gan Eng Seng Primary School, and Bukit Merah Secondary School. The Redhill MRT Station is around a 15-minute walk away.
Data from EdgeProp Research shows that the most recent commercial transaction at 161 Bukit Merah Central was a shophouse of the same size, which sold for $1.5 million ($948 per sq ft) in March 2021.
Furthermore, the latest commercial rents at Bukit Merah Central, as seen on EP Buddy, show that a three-bedroom duplex penthouse at Nassim Jade is currently on the market for $8.8 million.