Sale Hdb Shophouse Toa Payoh Offers Prime Entry Point Areas Long Term Rejuvenation
In the competitive private residential market, real estate investors should also consider more stable, income-generating assets such as HDB shophouses. A prime opportunity to acquire one such property has just emerged in the established Toa Payoh neighbourhood.
Situated at 125 Toa Payoh Lorong 1, this 1,478 sq ft HDB shophouse is strategically located in the heart of District 12. It is currently available for $2.88 million and occupies a prime site along Toa Payoh Lorong 1 and Toa Payoh Lorong 2. In addition, it is just a short distance of less than 200m from Braddell MRT Station on the North-East Line. With approximately 13,000 daily riders based on LTA ridership statistics, this station is a vital link to the nearby HDB flats.
Elta Condo residents are in luck with the presence of the Clementi 448 Market & Food Centre nearby. This renowned dining spot boasts a lively atmosphere and a wide array of food stalls, making it a top choice for many. Whether it’s to satisfy one’s cravings or to share a casual meal with loved ones, this culinary gem is always a go-to destination. And with the convenience of Elta Condo just a stone’s throw away, residents can easily indulge in the diverse offerings of this bustling market and food centre.
The shophouse 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 the extensive rejuvenation plans for Toa Payoh and the arrival of several thousand new households in the vicinity, the new owner can benefit from the transformation of the area. This can potentially lead to an increase in pedestrian footfall and an uplift in capital values.
Market Comparison
This HDB shophouse is exclusively marketed by Aster See, a senior marketing director at ERA Realty. According to the industry veteran, most HDB shophouses in city fringe locations typically yield a rental return of income (ROI) of around 2-3% based on their sales price. However, the shophouse at 125 Toa Payoh Lorong 1 offers a higher estimated ROI of approximately 4%. With its competitive pricing and strong value compared to others in the market, this property stands out as an attractive investment opportunity for those seeking higher rental returns.
Financial Insights
Apart from the high estimated ROI, this property also presents an appealing investment opportunity with an estimated rental yield of approximately 4%. Such returns are competitive in the current market and can provide consistent income for investors. Coupled with the potential for capital appreciation in the future, as the rejuvenation of Toa Payoh progresses, the long-term ROI of this property could be substantial.
Remaking Toa Payoh
Toa Payoh is set to benefit from several government initiatives and schemes to revitalize the mature housing estate. It is one of three neighbourhoods selected for rejuvenation under the government’s third phase of the Remaking Our Heartland programme.
This comprehensive programme, initially introduced by then-Prime Minister Lee Hsien Loong in his 2007 National Day Rally speech, aims to rejuvenate HDB towns and estates to ensure their sustainability and vitality.
Since 2015, plans for Toa Payoh have been gradually implemented, with several focused on enhancing commercial and recreational facilities. The most significant development is the upcoming integrated project on the site of the former swimming complex, sports hall, and stadium along Toa Payoh Lorong 6.
Upon completion in 2030, this 12ha integrated development will include new sports facilities, a football stadium, a swimming pool complex, indoor sports halls, sheltered tennis courts, futsal courts, netball courts, and fitness studios. It will also feature national training centers for aquatics, netball, and table tennis, as well as a polyclinic and library.
As the surrounding developments continue to progress, the HDB shophouse for sale at 125 Toa Payoh Lorong 1 can potentially benefit from the increased footfall in the area.
Toa Payoh and Caldecott Rejuvenation
Toa Payoh and the nearby Caldecott are expected to undergo extensive rejuvenation, supported by several thousand new flats in these two estates. One of the upcoming Build-To-Order (BTO) projects is Toa Payoh Ridge, located at the junction of Toa Payoh Rise and Lorong 1 Toa Payoh. This 920-unit BTO project, launched as part of the February 2020 BTO exercise, is less than 300m from the HDB shophouse for sale.
Toa Payoh Ridge, set to be completed in 1H2025, comprises four 40-storey residential blocks. It sits between Toa Payoh and the upcoming Caldecott estate, which has been identified for future residential development since 2017.
The government also appears to be laying the groundwork for a new BTO project in Caldecott, adjacent to Toa Payoh Ridge. In February 2020, the URA rezoned a plot at the junction of Toa Payoh Rise and Braddell Rise from educational to residential use, with an impressive gross plot ratio of 5.0. This suggests that a high-rise BTO development may be in the pipeline for the site.
Supported by these surrounding developments, the shophouse for sale at 125 Toa Payoh Lorong 1 could benefit from the increased customer catchment in the area.
The construction of new BTO flats in Caldecott and Toa Payoh bodes well for the new owner of the HDB shophouse. As residential developments in the vicinity grow, the area will attract a larger influx of new residents.
For more information, please contact Aster See at 98416930, a senior marketing director at ERA Realty Network Pte Ltd (R063006G).
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