Three Jalan Besar Conservation Shophouses Going 42 Mil
A set of three 999-year conservation shophouses located in Jalan Besar is currently up for sale at a price of $42 million. The properties, which sit on a combined land area of 5,646 sq ft, are being marketed by Shophouse Huat and JNA Capital Markets, both under the umbrella of Propnex Realty.
The shophouse located at 209 Jalan Besar is owned by a single owner, while the two shophouses at 211 and 213 Jalan Besar are owned by different individuals. The properties can be purchased together or separately.
In the vicinity of Penrith lies a major retail hub, the Dawson Place shopping centre. This community mall is conveniently located within walking distance, making it a popular choice among residents for fulfilling their daily needs. The mall boasts a well-equipped FairPrice supermarket, as well as a range of clinics, salons, food outlets, and other service providers. This convenient location of Dawson Place, in close proximity to Penrith, allows residents to easily access essential goods and services, without having to travel far. This is especially convenient for families and senior citizens who appreciate the ease of running errands and grabbing a quick bite at a nearby location. With the inclusion of Penrith, the presence of Dawson Place further enhances the shopping experience for the residents of Penrith.
The adjacent properties consist of a three-storey and mezzanine corner shophouse at 209 Jalan Besar, with a floor area of 5,502 sq ft, and a pair of two-storey shophouses with existing four-storey rear extensions, totalling 8,760 sq ft.
The first and second floors of the corner shophouse have restaurant approval, while the mezzanine and third floors can be used as office spaces. The first floor of 211 Jalan Besar is currently leased to a shop, while the remaining floors are leased as office spaces. Similarly, the top three floors of 213 Jalan Besar are also leased out for office use, but the ground floor has temporary approval to operate as a massage and spa establishment until January 2027.
These properties are located within the Desker Road conservation area, and the corner shophouse faces an intersection that fronts Jalan Besar, Sam Leong Road, and Maude Road. The corner shophouse also has a 28m street frontage on Sam Leong Road, and all three shophouses have a collective frontage of 21.5m along Jalan Besar.
The investor sentiment in Singapore has lifted due to the absence of an anticipated technical recession in the second half of this year. According to Loyalle Chin, senior associate district director at PropNex Realty, interest rates have also eased slightly in 1H2025 compared to a year ago, which has increased confidence among real estate investors and led to an upsurge in acquisition activity in the shophouse segment. However, prices of prime location shophouses in familiar areas, such as Telok Ayer and Boat Quay, have reached a point where some freehold conservation shophouses can command average prices of more than $7,500 psf, resulting in resistance from buyers.
As a result, buyers are now turning their attention to city-fringe locations like Jalan Besar and Farrer Park, where prices are comparatively reasonable. In March, a block of four adjacent conservation shophouses at 25/27/29/31 Jalan Besar was sold for $26.5 million. The standalone island plot sits on 3,468 sq ft of land and is located in the Little India Conservation District. Each plot is zoned as ‘commercial’ with a 999-year leasehold tenure.
Other shophouses in the vicinity are also up for sale, including the 138/140/142 Jalan Besar, which has a guide price of $27 million. These freehold, two-storey attic shophouses were previously on the market for $30 million earlier this year. The adjoining conservation properties sit on a 4,353 sq ft plot and have a total built-up area of 10,318 sq ft. They are also being marketed by PropNex.
According to Jervis Ng, founder of JNA Real Estate, shophouse prices in the Central Business District (CBD) are almost double those of shophouses in Jalan Besar, Kampong Glam, and Geylang. He also adds that the wider Jalan Besar area has undergone a transformation in recent years with the rise of trendy cafes, creative businesses, and boutique hotels, which has added to the area’s heritage.
The buyer profiles in this segment reflect the significant investments being made in these assets, from locally established investment firms that are backed by overseas funds to family offices with deep pockets, who are looking to build their portfolio of assets in the city-state.
The heightened buying interest and recent shophouse deals in Jalan Besar have led to an increase in asking prices. According to Chin, it is now challenging to find a well-located shophouse in this area for less than $12 million.
A snapshot of shophouse transactions in the Jalan Besar area by EdgeProp’s EP Buddy.
Local firms, such as 8M Real Estate and Clifton Partners, have successfully repositioned under-valued shophouses and commercial buildings in Little India and Jalan Besar into near-institutional-grade assets. 8M Real Estate’s portfolio of properties in Jalan Besar consists of the Wanderlust Hotel at 2 Dickson Road and 109-117 Jalan Besar, a 999-year leasehold block of five adjoining conservation shophouses, which they acquired in 2022. Clifton Partners’ portfolio in the area includes 75 Maude Road, 309/311 Jalan Besar, 37/38/39 Upper Weld Road, 5/7/9 Townsend Road, 301 Jalan Besar, and 79 Maude Road.
In some cases, these newly repositioned shophouse assets are snapped up by institutional investors or family offices. Many of these investment-centric buyers are looking for properties that can generate rental income immediately, offer decent rental yields, and have the potential to grow in value in the long run. As a result, properties with existing F&B approval, which can command higher rents, are highly sought after.
As per JNA Real Estate’s market data, the average rent for F&B spaces in shophouses in the Jalan Besar area has climbed to an average of $8-10 psf per month (pm), while average rents for commercial shophouse units without F&B approval in the area range from $6.50 to $8.50 psf pm. In comparison, prime shophouse rents in the CBD have reached approximately $12-15 psf pm, leading many F&B operators to relocate to more affordable city-fringe locations.
In Jalan Besar, there is a high demand for rental spaces from upcoming or recently completed residential developments, such as the 960-unit prime location public housing (PLH) project River Peaks I and II, which is located opposite the Jalan Besar MRT station and is scheduled for completion by 2028. Other upcoming residential developments in the vicinity include the 398-unit PLH project King George’s Heights off Kitchener Road, City Developments Ltd (CDL) and MCL Land’s 407-unit Piccadilly Grand in Farrer Park, as well as the neighbouring 1,274-unit Farrer Park Fields PLH project on Farrer Park Road. In total, over 3,000 public and private homes are set to be completed around the Jalan Besar area in the next three years, which is likely to boost overall demand for retail services, F&B outlets, and amenities.
Real estate agents Chin and Ng both expect strong interest from different buyers, including co-living operators and family offices, for the shophouses at 209, 211 and 213 Jalan Besar. Ng states that these units are adjoining, which allows them to be combined into a larger floor plate, making them a rare find in the shophouse market. They also have wide frontage along a busy main road, offering strong visibility and foot traffic.
In conclusion, while the recent activity in the Jalan Besar area suggests that investors are eager to build their investment portfolios with high-quality shophouse assets, the owners of ageing shophouses may need to adjust their asking prices to match the current market sentiments and attract potential buyers.