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By Cecilia Chow of The Edge Singapore Tuesday, 01 June 2010 11:03

Four adjoining refurbished shop­houses at 35 Hamilton Road located off Lavender Street in Singapore have been put up for sale with an indicative price of S$16 million to S$18 million. The row of refurbished 2½-storey shophouses is currently tenanted at a monthly rental rate of S$26,000, with the last tenancy expiring on March 2012. Located in the Jalan Besar Conservation area, the site is zoned for “civic and community institution” use under the 2008 Master Plan, and URA has granted provisional permission for change of use of the site to a hotel. Thus, there is an additional development charge of S$3 million for change of use on top of the indicative sale price. “The site is an ideal opportunity for boutique hotel investors,” says Grace Ng, deputy managing director of agency and business services at Colliers International, which is handling the sale. The site has been put up for sale by tender, which will close on June 23. The four shophouses sit on a freehold site with a total land area of 8,775 sq ft and have a combined gross floor area of 15,489 sq ft. With a gross floor plot ratio of 3.0 and, given the provisional permission for change of use, the new buyer can consider building a six-storey annex block at the rear of the existing double-storey shophouses to transform the site into a 110-room boutique hotel, Ng reckons. Budget hotels in the vicinity are charging about S$100 a night. Along Hamilton Road, the most recent transaction of a shophouse was at 5/5A/5B, which recently changed hands for S$3.15 million. The freehold site area is only 1,938 sq ft. Last October, two adjoining shophouses, at 32/32A and 34/34A Hamilton Road, with a freehold land area totalling 3,638 sq ft, were sold for S$4.4 million. Up for sale at Holland Village are two adjoining retail units at Holland Road Shopping Centre, which is popular with expatriates, who mainly frequent the Cold Storage supermarket and the established Lim’s Art and Living store.  Ng says two adjacent units on the third level, 03-47 and 03-48, are available for sale by auction on June 23. The indicative price for freehold units there is S$4,200 psf, the former, measuring 226 sq ft, has a quantum price of S$949,200 and the latter, measuring 247 sq ft, about S$1.04 million. Last month, there were two transactions on the third level of the shopping centre: The 452 sq ft unit at 03-27 changed hands for $1.88 million, or $4,158 psf; and the 474 sq ft unit at 03-05 was sold for $1.95 million, or $4,170 psf. “There has been a lot of interest in the units in Holland Shopping Centre as there are hardly any vacant ones, and the rental rates are relatively good,” says Ng. For instance, the rental rate at 03-47, which is leased to a toy shop, is S$2,828 a month, with the lease ending in September 2011. Meanwhile, 03-48 is rented by a stationery store with mail services at S$2,420 a month, with the tenancy ending in December. While potential investors and buyers may be less bullish in their bids, given the current market sentiment, rare properties like conservation shophouses as well as commercial units perceived to be in limited supply, will continue to be sought after, notes Ng. This article first appeared in the May 31 issue of the City & Country section in The Edge Singapore