Bedok North HDB shop up for sale with $24 mil guide price

A large strata HDB shop unit in Bedok North has been put up for sale via an invitation to offer, with a guide price of $24 million.

Located on the second floor of Block 215 Bedok North Street 1, this HDB strata commercial unit has a strata area of 16,178 sq ft. Based on the guide price, this works out to $1,483 psf.

Both corporate entities and foreigners are eligible to purchase the property, with no Additional Buyer's Stamp Duty (ABSD) or Seller's Stamp Duty (SSD) payable.

Rare Large-Floorplate HDB Shop in Mature Estate Enjoys Strong Tenant Demand

According to the statement, large-floorplate HDB shops in mature residential estates are rare and see robust tenant demand. Subject to relevant authority approvals, the unit could be subdivided into smaller spaces for other tenants, such as childcare centres or gyms.

The unit is currently tenanted to Singapore Pools.

If transacted at the guide price of $24 million, the buyer would enjoy an initial net yield of nearly 5%, which is above the market average, given that most HDB shop transactions over the past 12 months have yielded around 4.5% net.

HDB shops typically transact between $4 million and $8 million. While this Bedok North property is significantly larger, the hefty overall quantum may deter potential buyers.

Few Buyers Able to Meet $24M Quantum

There are few buyers capable of committing to a $24 million quantum, with food court operators being among the more likely contenders.

At this transacted price, the buyer would need to achieve at least $1 million in annual rental income to make the investment viable, yet few tenants are expected to afford such high rents. While the existing tenant is Singapore Pools, whether they would be keen to renew their lease at a premium rental remains uncertain.

Furthermore, while the shop is centrally located, it sits in a less bustling pocket of Bedok Central, and second-floor footfall can be relatively low.

With no new supply of HDB commercial units and their core role in serving neighbourhood residents, such properties are generally viewed as defensive assets offering stable rental yields.

Expressions of Interest Close at Noon on 10 July

Interested buyers may submit an Expression of Interest by 12:00 pm on 10 July.

Last month, DBS Group put up 36 HDB commercial shops and 10 private strata retail units for sale with a collective price tag of $210 million.

Last year, Mercatus Co-operative, under NTUC Enterprise, launched 18 of its commercial properties in HDB heartlands for sale, carrying a total indicative price of $265 million.