A high-footfall area near Bugis MRT station could get even busier, with a few big-ticket conservation shophouse deals.

At the corner of North Bridge Road and Liang Seah Street, a four-storey shophouse that has a popular dessert outlet at street level is being sold for about S$42 million, based on market talk.

Next door, a deal is said to be brewing for the three adjoining shophouses facing North Bridge Road and standing next to Bugis Cube. The price could be in the S$75 million to S$85 million range.

All four shophouses have 999-year leasehold tenure.

Meanwhile, there is no let-up in interest in the shophouse market in Districts 1 and 2.

Word in the market is that 96 Amoy Street, in the Telok Ayer Conservation Area, is being sold at around S$22 million to S$26 million. The 999-year property is owned by Xin Xin Consultancy, which is under receivership. The company’s sole shareholder, Chen Lingling, is a Chinese national who was identified as one of the associates of the 10 people from Fujian, China, convicted in the S$3 billion money laundering case that erupted last year.

Between 2020 and July 2023, the money launderers acquired conservation shophouses, predominantly in Districts 1 and 2, among other properties and assets. Following the anti-money laundering (AML) blitz in August 2023, there was a sharp slowdown in shophouse transaction volumes in the fourth quarter of 2023.

Property transactions were also dampened by high interest rates and weak sentiment on the global geopolitical and economic fronts, among other factors.

Shophouse market participants waited to see what would happen to the portfolio of shophouses owned by those arrested in the AML blitz and their associates.

After Chinese New Year, the market began to thaw and momentum started to pick up gradually as some of the shophouses owned by those arrested in the AML case, and others connected to the case who had fled Singapore, made their way to the market. The shophouses had been put up for sale by receivers appointed by banks which had helped finance the companies that acquired such properties.

“Most of these shophouses have been sold at relatively good prices. Moreover, interest rates have started to decline and banks are more eager to lend these days. This has made it more conducive for potential buyers who had retreated to the sidelines to re-enter the shophouse market,” said an industry observer.

Agents said that although the market has had a revival in shophouse transactions in recent months, the majority of these transactions are not being captured in official real estate market data as most buyers prefer not to lodge caveats; or the deals take place through the sale of shares in special purpose vehicles that own the shophouses.

Non-caveated deals

Examples of transactions for which have caveats have not surfaced include: 112 and 114 Telok Ayer Street, said to have fetched about S$20 million; 63 Neil Road (about S$11 million), 53 and 54 Amoy Street (S$18 million), and 26 and 28 Haji Lane (S$16 million).

The shophouse cluster opposite Bugis Junction is part of the Beach Road Conservation Area, a secondary settlement where shophouses can have a rear extension of up to five or six storeys, although there are some qualifications.

The dual-frontage 496 North Bridge Road, which is being transacted for S$42 million, is said to have a total floor area of about 7,200 sq ft across four levels and the rooftop. There is also a rooftop terrace area.

There is a Jane Deer dessert outlet on the street level, while a family karaoke outlet occupies the rest of the building – which is on a site area of about 2,130 sq ft.

The property is currently owned by Heap Seng Group, an established distributor and wholesaler of household and kitchenware brands. The buyer is understood to be the Lim family behind vegetable and fruit distribution company Seasonal Produce as well as 1855 F&B and wine and spirits retailer 1855 The Bottle Shop.

The trio of shophouses next door – at 490, 492 and 494 North Bridge Road – is drawing buying interest. No 490 is owned by four elderly members of a low-profile family. Another member of the same family owns Nos 492 and 494.

The three-storey shophouses sit on a total land area of 4,853 sq ft. Their floor area is estimated at about 15,000 sq ft. The ground-floor space is used as a coffee shop and a restaurant. On the upper floors are a backpacker hostel and other accommodation. There is scope for substantial value-adding asset enhancement works on the properties.

Xin Xin Consultancy, which holds 96 Amoy Street, entered into receivership in October 2023.

It had taken loans from DBS and UOB. DBS registered three charges against the company – two in 2021 and one in 2022. UOB has a charge, registered in 2021.

The buyer of 96 Amoy Street is understood to be an affiliate of Singapore-based Clifton Partners.

The two-and-a-half-storey shophouse at 96 Amoy Street, with a floor area of about 4,900 sq ft, is fully leased to a Chinese restaurant, Chengdu, which serves Sichuan cuisine. The shophouse used to be the home of Swee Kee Eating House – also known as Ka-Soh.