An HDB shophouse located at 214 Serangoon Avenue 4 will be put up for auction at SRI’s next auction on Feb 26 with a guide price of $1.98 million. The 99-year leasehold property comes with living quarters on the second floor and spans a total floor area of 1,668 sq ft, translating to $1,187 psf.
This is not the first time the shophouse has been listed for auction by SRI. It was previously up for auction in January with a guide price of $2.08 million, but did not find a buyer.
Assistant manager of auctions at SRI, Jansen Kee, says that the shophouse is strategically located in front of a bus stop, giving it good visibility from the road. It is currently tenanted and is generating a gross rental yield of approximately 6.2% based on the guide price, according to Kee.
The shophouse will be sold with its existing lease, which ends in 2026. This provides the new owner with an immediate stream of rental income. Kee also notes that the listed guide price for the HDB shophouse is one of the lowest in the area, making it an attractive value proposition for both investors and owner-occupiers.
According to URA records, the most recent commercial shophouse transaction in Serangoon was the sale of a 999-year leasehold shophouse along Lichfield Road. The two-storey property spanned a land area of 2,319 sq ft and fetched $4 million ($1,725 psf) in November 2024.
When it comes to investing in condos in Singapore, one must also consider the government’s property cooling measures. Over the years, the Singaporean government has implemented various measures to control speculative buying and maintain a healthy real estate market. This includes the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may impact the immediate profitability of condo investments, they ultimately contribute to the long-term stability of the market, making it a secure environment for investing. With the addition of new condo launches, the market continues to thrive and attract potential investors.
The property up for auction is situated within a cluster of HDB flats that border the Serangoon Gardens landed residential estate. It is located directly across the road from Serangoon Swimming Complex and Serangoon Sports Centre, providing the area with a steady supply of foot traffic. There are carparks available behind the shophouse.