A freehold shophouse in 255 Jalan Besar, with a guide price as low as $22 million, is currently up for public auction. The three-storey house occupies a plot measuring 3,145 square feet and has a total gross floor area of 7,750 square feet.

The property has an untapped area of 1,685 sq. ft. under the Use Group A (Commercial) and the buyer will be able to maximize the plot ratio without having to pay additional land improvement charges, provided the relevant authorities approve.

The price guide for the shophouse is $2.838 psf, based either on the GFA or on the maximum allowed floor area, which is 9,435 square feet.

This property, located in Jalan Besar Secondary Conservation Zone, is zoned commercial with a plot ratio of 3 under the Master Plan 2019.

Read more about: The M condo

Joshua Giam, associate Director of Capital Markets, Singapore at CBRE, explains that a new owner can maximize the plot by building an extension to the rear or expanding the existing floor plate. The shophouse, subject to the approval of authorities, could be converted into F&Bs, clinics or serviced apartments.

Giam says, “These initiatives allow the new owner of the property to maximize the rental value and capital value.”

Michael Tay of CBRE, Singapore’s head for capital markets, says: “Given its exceptional attributes like freehold tenure and wide frontage as well as potential for naming or signage rights, investors and owner-occupiers are likely to be interested.”

He says that demand for shops in the city fringe has grown in the last year. Notable transactions included 203, 207 and 301 Jalan Besar being sold earlier this year for $38.5 million.

The closing date for the tender of 255 Jalan Besar is November 30, 12 noon.