Type

Units

Min Area

Price Range

Other

1916 sqft

S$2.3M

Property Highlights

Commercial development with 1 unit currently available.
Prices currently start from S$2.3M.
For Singaporean second property buyers, ABSD applies at 20% of the purchase price, approximately S$460K on this acquisition.
Located 8 min (650 m) from NS13 Yishun MRT Station.

Price Trends & Rental Yield

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779 Yishun Avenue 2: A Mixed-Use HDB Shophouse Investment Near Yishun MRT

779 Yishun Avenue 2 represents a distinctive mixed-use property opportunity in one of the North's most established residential and commercial precincts. This HDB shophouse combines a functioning ground-floor commercial tenancy with upper-floor residential space, offering investors and owner-occupiers a rare chance to acquire an income-generating asset in a well-connected neighbourhood. The property sits approximately 650 metres—roughly an eight-minute walk—from Yishun MRT Station on the North-South Line, making it highly accessible for both tenants and potential buyers exploring the wider Yishun corridor.

The ground-floor commercial component, currently tenanted at S$5,000 per month plus GST, provides immediate and verifiable rental income for prospective purchasers. This established tenancy, secured until September 2029, offers stability and demonstrates the property's appeal to commercial operators seeking retail or service-sector premises in a high-traffic location. The commercial space spans approximately 94 square metres and has proven its viability in the local market, reducing the risk typically associated with finding new tenants for shophouse units. The upper floor, presently utilised as dormitory accommodation, comprises roughly 84 square metres of residential space and remains available for alternative deployment or continued rental generation.

Lease Structure and Tenure Considerations

Prospective buyers must carefully evaluate the tenure position of this property, as it carries approximately 60 years remaining on its original 91-year HDB lease commencing in 1991. This lease profile sits within the range typically acceptable to institutional lenders and private purchasers, though the advancing age of the lease will inevitably influence resale dynamics and refinancing terms as the decades progress. Buyers are strongly advised to obtain comprehensive legal and tax counsel before committing to a purchase, particularly regarding long-term hold value, potential future en-bloc scenarios, and the impact of lease decay on capital preservation. The remaining tenure should be factored into any investment thesis, as properties approaching 30 years of age—and consequently entering the final two-thirds of their lease—often experience tightening buyer pools and more conservative valuations in the secondary market.

Location and Transport Accessibility

The proximity to Yishun MRT Station represents a significant asset for 779 Yishun Avenue 2. The North-South Line serves as a principal arterial transit route, connecting Yishun directly to central business districts, educational institutions, and residential neighbourhoods across Singapore. For commercial tenants, the station's footfall and the surrounding Yishun district's established retail and service sector make this location particularly attractive for F&B outlets, professional practices, and specialist retail. For residential occupiers, the short walk to the station means convenient access to employment centres and leisure destinations across the island. The surrounding neighbourhood is well-established, with mature HDB estates, established wet and dry markets, and a broad range of community amenities that continue to drive steady demand for both residential and commercial space in the area.

Tax and Stamp Duty Obligations

Buyers acquiring this property must account for several tax considerations specific to its mixed-use nature. The ground-floor commercial component is subject to Goods and Services Tax (GST) on rental income, meaning purchasers who intend to retain the existing tenancy should factor this into their yield calculations and budgeting. The residential component of the property—comprising the upper floor—triggers Additional Buyer's Stamp Duty (ABSD) for second-property purchasers who are Singapore Citizens, currently levied at 20%. First-time home buyers and non-citizen investors face different ABSD schedules and should seek professional tax advice before proceeding. The interplay between commercial GST obligations and ABSD on the residential portion makes this a tax-complex acquisition, warranting detailed consultation with a qualified tax adviser or legal professional familiar with mixed-use HDB property transactions.

Investment Profile and Rental Yield Potential

For investment-focused buyers, 779 Yishun Avenue 2 offers a tangible income stream anchored by the current ground-floor commercial tenancy. The S$5,000-per-month rent (plus GST) translates to a documented lease that extends to September 2029, providing investors with medium-term visibility and cash-flow stability. Should the upper floor continue to generate dormitory or residential rental income alongside the commercial component, the blended yield may exceed that of standard residential apartments in the same locality. However, potential purchasers should conduct thorough due diligence on tenant quality, lease enforcement, and the feasibility of re-tenanting the spaces should the current agreements conclude. The asking price reflects a discount to recent valuation assessments, potentially offering an entry point for buyers prepared to manage the complexity of dual-tenancy operations and the associated administrative burden of mixed-use property ownership.

Comparative Market Position

Shophouse properties in the Yishun and Khatib areas trade infrequently compared to standard residential units, making direct price comparison challenging. However, the asking price below formal valuation suggests the vendor is motivated and receptive to negotiation, potentially offering better value than recent secondary-market transactions. Properties of similar age and lease tenor in comparable North-region locations have shown resilience provided they maintain good tenancy and sit in accessible transport corridors. The dual-income nature of this asset—commercial ground floor plus residential upper floor—differentiates it from single-use residential apartments and may appeal to a niche cohort of investor-owners seeking diversified cash generation.

Suitability for Different Buyer Profiles

This property appeals to several distinct buyer personas. Conservative investors seeking regular, documented rental income will appreciate the existing commercial tenancy and the upper-floor residential potential. Owner-occupiers with commercial ambitions might utilise the ground floor for personal enterprise whilst living upstairs, creating an integrated lifestyle-business model. Upgraders stepping from smaller HDB flats may find the space and dual-use flexibility attractive, though they must be comfortable managing tenant relationships and mixed-use administrative requirements. First-time buyers should note that ABSD implications and lease-tenure questions make this a more sophisticated acquisition than typical entry-level properties, warranting extra care in due diligence and legal structuring.

Transport and Future Growth Outlook

Yishun's strategic position on the North-South Line, combined with ongoing infrastructure investment across the North region, supports long-term demand for well-located commercial and residential space. Any future expansion of the MRT network or enhancement of bus rapid transit in the area would further strengthen accessibility and tenant appeal. The established nature of Yishun—with mature community infrastructure, schools, healthcare, and dining options—contrasts with newer precincts and suggests stable, if modest, capital appreciation over the medium term. Investors banking on dramatic uplift should instead focus on emerging districts; Yishun offers steady fundamentals and reliable rental demand rather than speculative capital gains.

779 Yishun Avenue 2 stands as a thoughtfully positioned mixed-use asset suited to investors and owner-occupiers willing to engage with the added complexity of commercial and residential components. The established tenancy, accessible location, and below-valuation asking price justify serious consideration by qualified buyers able to navigate tax, tenure, and financing intricacies with professional guidance.

Frequently Asked Questions

What is the estimated rental yield if purchased as an investment property?

Based on the current ground-floor commercial tenancy at S$5,000 monthly plus GST, the commercial component alone could generate approximately 2.6–3% gross yield on an asking price around S$2.3 million, depending on final purchase price negotiation. If the upper-floor residential space continues to generate dormitory or rental income—even modestly—the blended yield could reach 3–3.5% or higher, substantially above typical residential apartment yields in Yishun during comparable periods. However, purchasers must factor in GST liability on the commercial rent, property tax, maintenance contributions to the HDB shophouse management scheme, and vacancy risk once the current tenancy (secured until September 2029) expires, which will effectively compress net yield calculations.

How does the asking price compare to recent per-square-foot transactions in the Yishun shophouse market?

Mixed-use HDB shophouses in the Yishun and Khatib vicinity trade infrequently, making precise per-square-foot benchmarking difficult; however, comparable shophouse units in the North region have historically transacted between S$1,100–S$1,400 per square foot depending on lease tenure, tenancy status, and location specificity. At an asking price around S$2.3 million across approximately 1,916 square feet of total space, this property implies a price of roughly S$1,200 per square foot, positioning it competitively within the established range and reinforced by the vendor's willingness to offer a discount below formal valuation. Buyers should request recent comparable sales data from their legal advisers or property agents to verify whether this pricing aligns with the most current secondary-market transactions, particularly for shophouses with sub-70-year remaining lease tenure.

What are the ABSD implications if I am a Singapore Citizen purchasing a second residential property?

As a Singapore Citizen acquiring a second residential property, you are liable for Additional Buyer's Stamp Duty (ABSD) at the current rate of 20% on the residential component of 779 Yishun Avenue 2, calculated on the upper-floor value (approximately 84 square metres). This 20% ABSD is levied on top of the standard Buyer's Stamp Duty and other closing costs, materially increasing your total acquisition expense; on a property in this price range, ABSD alone could add S$300,000–S$400,000 to your out-of-pocket costs. You should obtain independent tax and legal advice to understand whether the residential and commercial portions can be separately valued and assessed, and whether any reliefs or exemptions might apply based on your personal circumstances or the property's specific classification under IRAS guidelines.

How does the 60-year remaining lease impact resale value and buyer demand?

A lease with approximately 60 years remaining sits at a point where capital decay begins to accelerate; whilst institutional lenders will still finance properties at this tenure, the market's buyer pool tightens as the lease ages beyond the 70-year threshold, and valuation growth typically moderates. Properties entering their final 40 years of lease life face progressively steeper discounts in the secondary market, and refinancing terms may become less favourable as the lease continues to decline. For investment purposes, this tenure profile means the property is less suited to long-term multi-decade hold strategies; rather, it appeals to investors planning to exit within 10–20 years, or to owner-occupiers with shorter time horizons. Buyers should factor in the likelihood of reduced capital appreciation and potential en-bloc scenarios as a means of eventual exit, rather than banking on steady lease-held asset growth.

How does proximity to Yishun MRT Station affect long-term demand and capital appreciation?

Direct proximity to a major MRT interchange—Yishun serves the North-South Line and offers onward connectivity to multiple districts—provides substantial insulation against obsolescence and supports persistent tenant demand for both commercial and residential space. The 650-metre walking distance situates the property within the premium accessibility band, typically associated with price resilience and faster tenant turnover in commercial applications. For commercial tenants, MRT adjacency translates to commuter footfall and customer accessibility, making this location perpetually attractive for retail, F&B, and service-sector operators; for residential occupiers, the same proximity means convenient access to island-wide employment and leisure nodes. Historically, Yishun properties within 10 minutes' walk of the station have demonstrated more stable values and faster lease-up cycles than equivalently aged properties in less accessible pockets of the North region, though the advancing lease tenure will eventually overwhelm locational advantages.

Is this property suitable for first-time home buyers?

This property is not ideally suited to first-time home buyers due to several compounding complexities: the mixed-use structure requires familiarity with commercial tenancy management and dual-income property operation; the advancing lease tenure (60 years remaining) introduces non-trivial resale risk that novice buyers may underestimate; and the requirement to navigate GST on commercial rent plus residential ABSD liability creates tax-structural challenges beyond typical first-time buyer transactions. First-time buyers are typically better served by straightforward residential apartments with longer lease tenures and simpler tax profiles, allowing them to build property investment experience without the added administrative and financial burden of mixed-use management. However, a first-time buyer with property management experience, professional tax advice, and substantial capital reserves might view this as an opportunity to generate income whilst establishing their residential footprint, provided they fully understand the lease-decay implications and tenancy risks.

What TDSR headroom and financing capacity should I expect at this price point?

At an asking price around S$2.3 million, Total Debt Service Ratio (TDSR) constraints will likely bind for most purchasers unless they carry substantial existing equity or minimal other debt obligations. Assuming a 75% loan-to-value (LTV) facility—standard for leasehold properties with 60-year remaining tenure—buyers would require a loan of approximately S$1.725 million, translating to monthly mortgage payments of roughly S$9,300–S$10,500 depending on tenure and interest-rate assumptions. For a borrower subject to TDSR caps (typically 60% of gross monthly income), this implies a required monthly gross income of approximately S$15,500–S$17,500 before servicing other debts. Purchasers with existing mortgages, vehicle loans, or credit-card commitments will face tighter TDSR headroom; those carrying significant liquid reserves may be able to structure a larger down payment to reduce LTV and monthly debt service, improving loan approval odds and reducing overall interest burden.

How does this shophouse compare to competing mixed-use developments in Khatib and Yishun?

Direct competition in the Khatib and Yishun mixed-use shophouse segment is limited; most comparable properties are older HDB shophouses or newly renovated pre-war shop-houses that command premium pricing due to heritage status or extensive capital investment. 779 Yishun Avenue 2, positioned in an established residential enclave with verified commercial tenancy, sits advantageously relative to vacant or under-tenanted shophouses requiring immediate investment to generate income. Newer, purpose-built commercial developments (multi-storey office blocks, purpose-built retail centres) in the Yishun precinct offer more polished environments but at significantly higher entry costs and with less residential component flexibility. For investors specifically seeking an income-generating mixed-use asset with manageable capital commitment and established tenant relationships, this property competes favourably on value; for buyers seeking institutional-grade commercial or premium residential space, newer developments would offer better amenities and appreciation potential.

Which floor levels or unit stacks offer the best value for purchasers?

This property comprises a ground-floor commercial component and upper-floor residential component, rather than multiple separate units; therefore, traditional stack-level or floor-height value differentiation does not apply. The ground floor's direct street access and commercial zoning command premium economic value due to high visibility, foot traffic, and operational accessibility for tenants—this is reflected in the current S$5,000-monthly lease and is the primary income-generating asset. The upper floor, whilst residential in character and potentially less visible to passing pedestrians, offers privacy, separated utility management, and the flexibility to operate as independent accommodation, dormitory, or future commercial sub-tenancy. For owner-occupiers, the upper floor is the obvious residential zone; for pure investors, the ground floor's established tenancy provides the concrete cash-flow anchor, making the blended property valuable precisely because of its dual-income structure rather than any particular level offering superior value in isolation.

What is the future supply pipeline for commercial and residential space in the Yishun district?

Yishun, as a mature North-region estate established in the 1980s, is not subject to the same pipeline of large-scale new residential or commercial developments characteristic of emerging precincts like Punggol or Jurong. However, the URA's long-term planning framework indicates ongoing intensification and mixed-use renewal in key nodes along major transport corridors, and Yishun's position on the North-South Line makes it a candidate for gradual, site-by-site upgrading and selective en-bloc redevelopment over the next 10–20 years. New commercial space in the Yishun vicinity is predominantly accretive through minor infill projects and shophouse re-tenanting rather than major purpose-built schemes; this supply scarcity supports rental resilience for existing commercial assets. Residential supply in Yishun is similarly constrained relative to new launches in outlying new towns, suggesting that well-located mixed-use assets like 779 Yishun Avenue 2 may benefit from persistent tenant demand and reduced competitive pressure from new-build alternatives, though en-bloc risk and gradual lease decay remain long-term structural headwinds.

Commercial At Yishun Avenue 2 — From S$2.3M