When considering the option of investing in a Singapore Condo, it is important to also assess the potential for rental yield. Rental yield is the annual rental income as a percentage of the property’s purchase price. In the Singapore market, condo rental yields can vary greatly, depending on factors such as location, property condition, and market demand. Areas with a high demand for rentals, such as those near business districts or educational institutions, tend to offer more attractive rental yields. Conducting thorough market research and consulting with real estate agents can provide valuable insights into the rental potential of a specific Singapore Condo.
A 99-year leasehold HDB shophouse located at 214 Serangoon Avenue 4 will be featured in SRI’s upcoming auction on February 26. The two-storey shophouse, which includes living quarters on the second floor, has a total floor area of about 1,668 sq ft. With a guide price of $1.98 million, this translates to $1,187 psf on the floor area.
This mortgagee sale property will be making its second appearance at SRI’s auction, as it was previously listed last month with a higher guide price of $2.08 million but did not find a buyer. According to Jansen Kee, assistant manager of auctions at SRI, the shophouse is situated prominently in front of a bus stop, ensuring good visibility from the road.
The shophouse is currently tenanted, generating a gross rental yield of approximately 6.2% based on the guide price, says Kee. He also mentions that the unit will be sold with its existing lease, which will end in 2026. This means that the new owner will immediately receive rental income.
Kee notes that the listed guide price for this HDB shophouse is one of the lowest for the asset class in the area, making it an attractive proposition for both investors and owner-occupiers. URA records show that the most recent commercial shophouse transaction in Serangoon was the sale of a 999-year leasehold shophouse along Lichfield Road in November 2024. This two-storey property with a land area of 2,319 sq ft was sold for $4 million ($1,725 psf).
The shophouse up for auction is situated within a cluster of HDB flats that border the Serangoon Gardens landed residential estate. It is directly across the road from Serangoon Swimming Complex and Serangoon Sports Centre, providing a steady flow of foot traffic in the area. Parking spaces are available behind the shophouse.