In today’s bustling real estate market, investors should consider diversifying their portfolio with stable, income-generating assets such as HDB shophouses. A rare opportunity has just emerged for interested buyers to acquire one of these coveted properties in the well-established Toa Payoh neighbourhood.
Located at 125 Toa Payoh Lorong 1, this 1,478 sq ft HDB shophouse is situated in the heart of District 12, making it a prime location. It is offered at a reasonable price of $2.88 million and sits on a valuable site surrounded by Toa Payoh Lorong 1 and Toa Payoh Lorong 2. Braddell MRT Station, just 200m away, adds even more convenience for potential tenants. This station sees a daily ridership of around 13,000 passengers, making it an essential transportation hub for the nearby HDB flats.
The shophouse is also in close proximity to popular 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. With the Toa Payoh estate undergoing various rejuvenation plans and the addition of several thousand new households, the new owner of this shophouse can take advantage of the area’s transformation, which will inevitably increase pedestrian footfall and boost property values.
Industry expert Aster See, a senior marketing director at ERA Realty, is exclusively marketing the HDB shophouse for sale. See notes that similar shophouses in fringe locations typically offer an ROI of 2-3%, based on their sales price. However, the shophouse on 125 Toa Payoh Lorong 1 stands out with an estimated ROI of 4%, making it a more lucrative investment opportunity.
See highlights the property’s competitive pricing and strong value compared to its counterparts. Not only does it offer attractive rental returns, but it also has the potential for future capital appreciation as Toa Payoh continues to undergo rejuvenation.
One of the government’s initiatives to revitalize mature housing estates is the Remaking Our Heartland programme, which Toa Payoh is a part of. This programme, introduced by former Prime Minister Lee Hsien Loong in 2007, aims to enhance the sustainability and vitality of HDB towns and estates. Since 2015, several plans have been put into action in Toa Payoh, including the improvement of commercial and recreational facilities. The most notable development is the new integrated project on the site of the former swimming complex, sports hall, and stadium on Toa Payoh Lorong 6.
This upcoming development will feature new sports facilities, a football stadium, a swimming pool complex, indoor sports halls, sheltered tennis courts, and fitness studios. It will also house national training centers for aquatics, netball, and table tennis, as well as a polyclinic and library. With an estimated completion date of 2030, this 12ha integrated development will undoubtedly enhance Toa Payoh’s appeal and drive up footfall for the area’s shops, including the HDB shophouse on 125 Toa Payoh Lorong 1.
The government has also planned for future residential developments in Toa Payoh and the neighboring Caldecott estate. One of the upcoming Build-To-Order projects, Toa Payoh Ridge, is located just 300m from the shophouse on sale. Launched in February 2020, this 920-unit project is expected to be completed in the first half of 2025. The site sits between Toa Payoh and the upcoming Caldecott estate, which has been earmarked for future residential development since 2017.
Toa Payoh Ridge is not the only project in the pipeline. In February 2020, the Urban Redevelopment Authority (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 works for the area.
In the world of real estate investing, an important factor to consider is the location, and this is especially true in Singapore. Condominiums situated in central areas or in close proximity to essential amenities, such as schools, shopping centers, and public transportation hubs, have a higher likelihood of increasing in value. Some prime locations in Singapore, including Orchard Road, Marina Bay, and the Central Business District (CBD), have consistently shown a steady growth in property values. These areas are also popular among families due to their close proximity to reputable schools and educational institutions, making condos near these areas highly sought after and a wise investment choice for potential buyers. As such, when it comes to condominium investment in Singapore, the location holds a significant influence in determining its value and potential for future growth.
As the Toa Payoh and Caldecott rejuvenation plans progress, the HDB shophouse on 125 Toa Payoh Lorong 1 will benefit from the increased consumer catchment in the area. With the construction of new BTO flats and other developments, the shophouse will undoubtedly attract a larger pool of potential customers.
In summary, the HDB shophouse on sale at 125 Toa Payoh Lorong 1 presents an attractive investment opportunity, with its competitive pricing, potential for high rental yield, and future capital appreciation. For more information, interested buyers can contact Aster See, senior marketing director at ERA Realty, at 98416930.