Value Of Shophouses In Singapore Set To Rise.
Sales of shophouses in Singapore reap tidy profit for investors.
October 2, 2012 (Newswire.com) - Singapore property market seeing sales of shophouses reaping investors a tidy profit as demand and limited supply underpin the rising prices.
Value of shophouses have been performing good this year. Investors have seen transaction value going through the roof. Transaction volume has also been healthy this year with about 192 units transacted within the first eight months this year.
The limited supply of shophouses, and their historical architectural design is sustaining demand. Conserved shophouses in Chinatown is particularly desired by investors.
Shophouses located in the core central areas of Singapore typically enjoy higher capital appreciation but lower yields. In addition, the supply of good street fronting shophouses is very limited. Some of the hotter areas of demand for shophouses include Telok Ayer, Amoy Street and even Geylang and Serangoon Road areas.
Rental yields tends to be around 3 to 4 per cent. The greatest demand for shophouses are usually from the food and beverage firms and boutique firms in the creative industries. Shophouses give these companies a good corporate image partly from its historical architecture.
Some shophouse investors have reaped tidy profits from the sale. For example, a shophouse in Duxton Road was bought for $3.15 million and sold for 4.5 million two years later. A hefty capital gain of 43 per cent.
Shophouses can be found in the historic districts of Boat Quay, Chinatown, Kampong Glam, Little India, Blair Plain, Cairnhill, Emerald Hill, Balestier, Joo Chiat, Mount Sophia, Tanjong Katong and Tiong Bahru areas.
Investors looking at other Singapore property , are welcome to visit http://www.BuyRentSingapore.Com or http://www.BuyRentSingaporeProperty.Com for new launch Singapore properties. BuyRentSingapore.Com is a Singapore property listing website.