07 March 2023, SINGAPORE – PropNex Realty, the largest real estate agency in Singapore has today announced that 10 adjoining strata shops at Cuppage Plaza, off Orchard Road, will be put up for sale via tender for an indicative price of $12 million on 08 March 2023. The guide price translates to about $2,347 per square foot (psf) based on the combined strata area of 5,112 sq ft for the 10 adjoining shops.
Developed by Far East Organization, Cuppage Plaza at 5 Koek Road in District 9 has a 99-year leasehold tenure, commencing from August 1979. The building – which is located near the Somerset MRT station and several retail malls – is known for its eclectic selection Japanese restaurants and KTV lounges. Cuppage Plaza, along with other establishments in the area offer a variety of F&B and entertainment options, contributing to the thriving nightlife scene in the Orchard Road shopping district.
Tracy Goh, Head of Investment and Collective Sales at PropNex, said, “The 10 strata shops are owned by a single owner, who has been holding on to the property since it was built. The space has always been fully-leased since day one and has never been vacant over the last four decades, owing to its sought-after location. In addition, a sizable adjoining shop space that has been approved for nightclub use permanently is also rarely on the market. We expect the high gross rental yield of more than 4% and the continued keen tenancy interest for such premises to appeal to investors, presenting them with a good recurring income and strong rental demand. The 10 shops are presently tenanted to a nightlife business operator and the property will be sold with tenancy.”
Retail units at Cuppage Plaza tend to be tightly-held, with only five transactions reflected in the URA Realis caveat data between January 2018 and February 2023. All five transactions were for smaller shops spanning from 344.5 sq ft to 409 sq ft. The most recent transaction was for the sale of a 269.1 sq ft retail space for $795,000 (or $2,954 psf) in June 2022.
Ms Goh added, “The Orchard precinct is a lifestyle destination, in particular, the Somerset area where Cuppage Plaza is located is a hive of activity – a vibrant nightlife and entertainment spot. The government also has plans afoot to revitalise Orchard Road, including enhancing historic side streets like Cuppage Terrace. Post-Covid-19 and with the reopening of economies, life has mostly returned to normal and we are seeing a pick-up in tourist arrivals as well as business resumption in the entertainment sector. We believe these factors are beneficial to the nightlife and entertainment trade, and will increase the appeal of the strata shops at Cuppage Plaza.”
As the portfolio of shops are for commercial use, they are not subjected to the additional buyer’s stamp duty (ABSD) nor the seller’s stamp duty (SSD). Foreign buyers are also eligible to purchase the property.
The tender will close at 2pm on 3 May 2023.
Cuppage Plaza (exterior) | Source: PropNex
Cuppage Plaza (interior) | Source: PropNex