Real estate investors should consider stable, income-generating assets like HDB shophouses in the current private residential market. A prime HDB shophouse located at 125 Toa Payoh Lorong 1 is now available for purchase, offering a great opportunity for investors. The 1,478 sq ft property is situated in the mature Toa Payoh neighbourhood, one of the most centrally located districts in District 12. It is priced at $2.88 million and is located in a sought-after location between Toa Payoh Lorong 1 and Toa Payoh Lorong 2, just a stone’s throw away from Braddell MRT Station on the North-East Line. According to LTA ridership statistics, this station serves approximately 13,000 MRT riders daily and is intrinsically linked to the nearby HDB flats.
This HDB shophouse for sale is also conveniently located near 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 a series of rejuvenation plans in the works for the Toa Payoh estate and an influx of new residents moving into the area, the new owner stands to benefit from the transformation of Toa Payoh. This will lead to an increase in pedestrian footfall and an uplift in capital values in the vicinity.
According to senior marketing director at ERA Realty, Aster See, most HDB shophouses in city fringe locations typically yield a rental return of income (ROI) of around 2-3% based on their sales price. In contrast, the shophouse at 125 Toa Payoh Lorong 1 offers an estimated ROI of approximately 4%, making it a more attractive investment option for those seeking higher rental returns. With its competitive pricing and strong value, this property stands out in the market.
In addition to the attractive rental yield, this property also presents the potential for capital appreciation in the future. As Toa Payoh continues to rejuvenate, the long-term ROI for this property could be substantial.
Toa Payoh is set to benefit from several government initiatives and schemes aimed at rejuvenating the mature housing estate. It is one of three neighbourhoods earmarked for rejuvenation under the government’s third phase of its Remaking Our Heartland programme. This programme, first introduced by then-Prime Minister Lee Hsien Loong in his 2007 National Day Rally speech, aims to revitalise HDB towns and estates to ensure their sustainability and vitality.
Since 2015, plans for Toa Payoh have been gradually implemented, with a focus on enhancing 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 along Toa Payoh Lorong 6. This upcoming integrated development will include new sports facilities, a football stadium, a swimming pool complex, indoor sports halls, and more. It will also be home to national training centres for aquatics, netball, and table tennis, as well as a polyclinic and library. The completion of this 12ha project in 2030 is expected to enhance Toa Payoh’s appeal and drive footfall for the area’s shops, including the HDB shophouse at 125 Toa Payoh Lorong 1.
The government’s plans to rejuvenate Toa Payoh and neighbouring Caldecott will also be supported by the construction of several thousand new flats in these two estates. One of the upcoming Build-To-Order projects, Toa Payoh Ridge, is located just 300m away from the shophouse for sale. This 920-unit project is expected to be completed in 1H2025 and sits between Toa Payoh and the future Caldecott estate.
Investing in condos in Singapore requires careful consideration of the government’s property cooling measures. In order to maintain a stable real estate market and discourage speculative buying, the Singaporean government has implemented various measures over the years. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may affect the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a safer investment environment. It is important to stay updated on these measures, as they can change over time and impact the overall investment landscape. Additionally, potential investors should keep an eye out for new condo launches, such as those available on thebellegame.com, as these developments may offer unique opportunities in the market.
Furthermore, the URA has 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, which could potentially bring in more footfall to the area.
In summary, the surrounding developments in Toa Payoh promise good news for the new owner of the HDB shophouse for sale. With the construction of new BTO flats and the implementation of rejuvenation plans, the area’s consumer catchment will broaden, making it a prime location for investment. For more information, interested buyers can contact Aster See, senior marketing director at ERA Realty, at 98416930.