Type

Units

Min Area

Price Range

Other

5100 sqft

S$15.9M

Property Highlights

Landed development with 1 unit currently available.
Prices currently start from S$15.9M.
For Singaporean second property buyers, ABSD applies at 20% of the purchase price, approximately S$3.2M on this acquisition.
Located 3 min (220 m) from EW15 Tanjong Pagar MRT Station.

Price Trends & Rental Yield

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Prime Tras Street Shophouse: Commercial Excellence in Tanjong Pagar

Prime Tras Street represents a distinctive commercial opportunity within Tanjong Pagar, one of Singapore's most culturally rich and economically active districts. This 3.5-storey shophouse occupies a strategic position on Tras Street, a thoroughfare synonymous with heritage architecture, vibrant street life, and established commercial activity. The development sits exceptionally close to Tanjong Pagar MRT Station (EW15), positioned merely 220 metres away, ensuring seamless connectivity for both proprietors and customers.

The shophouse configuration spans 5,100 square feet across its three-and-a-half storeys, a substantial footprint that accommodates a diverse range of commercial and mixed-use operations. This vertical layout is characteristic of traditional shophouse design, whereby ground-level retail or service-oriented spaces operate independently from upper-storey offices, residential, or ancillary accommodation. Such flexibility has made shophouses enduringly attractive to entrepreneurs, investors, and owner-operators seeking to maximise both operational revenue and asset appreciation within a single property envelope.

Location and Accessibility

Tanjong Pagar's reputation as a commercial and lifestyle hub cannot be overstated. The district combines historic preservation with contemporary urban dynamism, hosting independent retailers, F&B establishments, galleries, professional services, and creative enterprises. Tras Street itself exemplifies this character, lined with preserved shophouses that have undergone selective modernisation whilst retaining their architectural integrity. The proximity to Tanjong Pagar MRT Station (EW15) places the property on a direct mass-rapid-transit corridor serving the wider central business district, Marina Bay, and eastern Singapore.

This exceptional accessibility translates into tangible benefits for any commercial operation conducted from the premises. Daily commuter flows, delivery vehicle access, and customer navigation are all enhanced by the short walking distance to public transport infrastructure. The East-West line connection means operators and their clientele enjoy efficient travel to the CBD, Raffles Place, and Marina South, reinforcing Tanjong Pagar's positioning as a natural destination for foot traffic and spontaneous patronage.

Commercial Potential and Investment Appeal

Shophouses of this calibre in prime Tanjong Pagar locations have demonstrated remarkable resilience and value retention over successive property cycles. The combination of heritage conservation policies, scarcity value, and sustained commercial demand ensures that well-maintained properties in this precinct remain highly sought-after. Investors and owner-operators who have held comparable shophouses through various market cycles have benefited from steady rental income streams and meaningful capital appreciation, particularly as the district has consolidated its status as a premium mixed-use neighbourhood.

The 5,100 sqft footprint affords operational flexibility rarely available in smaller retail or office settings. Ground-floor commercial use can be complemented by upper-storey office suites, a residential component, or service-provision spaces, enabling owner-operators to diversify income streams or tailor the property to specific business models. This modularity is a defining strength of the shophouse typology and continues to underpin strong investor demand for well-located examples like those on Prime Tras Street.

Market Position and Comparables

Within the Outram Planning Area, shophouses represent a distinct asset class, commanding premium valuations relative to purpose-built office or retail units. This pricing reflects their heritage status, scarcity, flexible use potential, and the enduring desirability of Tras Street as a commercial address. Recent transactions in the immediate vicinity have demonstrated that prospective buyers remain willing to pay substantial sums for properties offering the right combination of location, condition, and operational upside.

Purchasers considering shophouses in this neighbourhood typically fall into two broad categories: owner-operators seeking to establish or consolidate an independent business, and institutional or individual investors pursuing long-term capital and rental returns. Both buyer types benefit from the relatively stable commercial environment, the established customer base and foot traffic patterns, and the regulatory certainty afforded by heritage conservation designations.

Structural and Heritage Considerations

Shophouses designated for conservation are subject to planning guidelines that protect their external appearance and overall architectural character. Whilst internal modifications and upgrades are permissible, prospective purchasers should factor in potential costs associated with heritage compliance, maintenance of façade integrity, and any structural assessments required for lending purposes. These considerations, whilst adding to the owner's responsibility, also underpin the long-term asset stability and value preservation that characterise heritage shophouse investments.

The 3.5-storey structure provides ample vertical space for diverse operational configurations. Whether utilised as a single integrated operation or subdivided into separate commercial and residential tenancies, the property's physical attributes support multiple value-creation strategies. Upper-storey spaces, in particular, benefit from natural light, sightlines across the Tanjong Pagar streetscape, and potential for commanding premium rental rates for office or creative-industry tenants.

Investment Dynamics and Financing

For investors evaluating shophouse acquisitions in Tanjong Pagar, the primary value drivers revolve around rental yield, capital appreciation, and potential for operational upside through active management. The immediate MRT proximity enhances the property's appeal to both end-user tenants and walk-in customers, supporting consistent occupancy and rental realisation. Financial institutions typically view heritage shophouses in prime locations as sound lending propositions, with many offering competitive loan-to-value ratios for well-documented investment acquisitions.

Prospective purchasers should conduct thorough due diligence regarding lease tenure, land ownership structure, and any encumbrances or shared facilities arrangements. Shophouses occasionally involve strata management or shared services agreements, particularly in conservation areas, and these should be carefully reviewed prior to acquisition. Professional valuation, quantity surveying, and legal advice are essential to establish realistic expectations regarding acquisition costs, holding periods, and exit scenarios.

Conclusion

Prime Tras Street Shophouse exemplifies the enduring appeal of heritage commercial property in Singapore's premier mixed-use precincts. Its strategic location, substantial floorplate, vertical configuration, and proximity to Tanjong Pagar MRT Station collectively position it as an attractive proposition for investors, owner-operators, and commercial enterprises seeking a foothold in one of the island's most vibrant and economically resilient neighbourhoods. Whether pursued as an owner-operated business asset or as a long-term investment vehicle generating rental income, the property embodies the commercial and cultural attributes that have sustained Tanjong Pagar's prominence across successive decades.

Frequently Asked Questions

What rental yield can be expected if this shophouse is purchased as an investment property?

Shophouses in prime Tanjong Pagar locations historically achieve gross rental yields in the region of 3% to 5% annually, depending on the specific mix of ground-floor commercial and upper-storey office or residential leasing. The 5,100 sqft footprint permits diversified income streams—for example, a ground-floor F&B or retail operator could be complemented by two or three upper-storey office tenancies, potentially enhancing overall yield. Recent comparable transactions in the district suggest that well-maintained properties with established tenant bases or high foot-traffic potential command rental rates that support yields toward the higher end of that range. However, actual yield realisation depends on market conditions at acquisition, tenant quality, lease terms, and the owner's operational management of the property.

How does the price per square foot for this shophouse compare to recent Tanjong Pagar sales?

Heritage shophouses in Tanjong Pagar typically trade at price points ranging from approximately S$2,800 to S$3,500 per square foot for well-maintained, well-located examples with sound structural condition. Properties commanding the upper end of that range typically benefit from exceptional street frontage, high-volume foot traffic, established commercial operations, or unique architectural features. The specific price-per-sqft metric for any individual shophouse transaction depends on the condition of the structure, tenure clarity, whether it is leasehold or freehold, and the commercial viability of the location on that particular street segment. Investors evaluating this property should obtain recent comparable sales data from conveyancing practitioners and professional valuers active in the Outram and Tanjong Pagar markets to contextualise the asking price within current market conditions.

What are the Additional Buyer's Stamp Duty implications for a second-time property buyer acquiring this shophouse?

A Singapore Citizen purchasing this shophouse as a second residential property is liable for Additional Buyer's Stamp Duty (ABSD) at a rate of 20% on the purchase price, calculated on top of standard Stamp Duty. This means the total stamp-duty obligation could be substantially higher than for a first-time buyer or a non-residential investor. For example, on a purchase price in the region of S$15 million, ABSD alone could represent approximately S$3 million in additional acquisition costs. However, if the shophouse is acquired by a non-individual entity (such as a company) or if it is classified as a non-residential commercial property for regulatory purposes, the ABSD regime may not apply, though this requires specific legal and tax advice. Prospective buyers should consult a conveyancing solicitor to clarify their ABSD liability and explore whether the property's commercial character might offer any tax structuring advantages.

Is there any lease-decay risk for this shophouse, and how might this affect long-term resale value?

The lease tenure of this shophouse is not explicitly detailed in the available information, and this is a critical due-diligence item for any prospective purchaser. If the property is held on a 99-year leasehold basis, buyers should ascertain the remaining lease term, as leases below 60 years tend to experience accelerated value depreciation and increasing difficulty in securing mortgage financing. Conversely, if the property is freehold or held on a 999-year lease, there is no decay risk and the asset retains its long-term stability and marketability. Heritage shophouses in Tanjong Pagar have historically maintained strong resale demand regardless of modest lease decay, provided the remaining term exceeds 70 years, owing to their scarcity and location desirability. Nevertheless, a solicitor should obtain the title deed and provide a detailed tenure analysis as part of the acquisition process, and prospective buyers should factor any remaining lease term into their long-term capital appreciation projections.

How does proximity to Tanjong Pagar MRT Station (EW15) affect property demand and capital appreciation?

The 220-metre walking distance to Tanjong Pagar MRT Station (EW15) is a substantial value driver for any commercial property in this location. MRT accessibility is one of the most consistent demand factors in Singapore's real estate markets, as it directly impacts foot traffic, tenant desirability, and customer reach for any retail or service operation. Properties within a five-minute walk of major MRT stations typically experience stronger rental demand, lower vacancy rates, and more resilient capital values through property cycles. For the Prime Tras Street shophouse, the East-West line connection means operators enjoy direct access to the CBD, Raffles Place, and eastern Singapore, making the property attractive to tenants serving commuter and professional markets. Capital appreciation has historically been supported by the durability of MRT-adjacent property values, particularly in heritage-designated areas where the supply of comparable space is constrained. However, future capital appreciation will also depend on broader economic conditions, retail trends, and whether the local commercial environment continues to attract diverse operator types.

Which buyer profiles are best suited to this shophouse—HNW individuals, upgraders, first-time buyers, or investors?

This shophouse is primarily suited to high-net-worth individuals (HNW) pursuing a tangible asset with heritage appeal and long-term capital stability, active owner-operators seeking to establish or expand a commercial enterprise in a premium location, and experienced property investors comfortable with operational complexity and heritage-conservation requirements. First-time homebuyers are generally not a primary market for Tanjong Pagar shophouses, as these properties command multi-million-dollar acquisition costs, mixed-use characteristics may complicate financing or personal occupancy, and the operational demands are typically substantial. Upgraders moving from smaller residential units may find the commercial nature and price point prohibitive. However, owner-operator entrepreneurs—particularly those in F&B, retail, professional services, or creative industries—often view shophouses as the ideal vehicle for combining a residence with a fully integrated business operation. Institutional investors seeking long-term rental streams and capital preservation also remain active acquirers in this segment, given the relative scarcity of prime Tanjong Pagar shophouses and their historical track record of value retention through market cycles.

What TDSR and financing headroom challenges should second-time buyers expect at this property's price point?

For a second-time Singapore Citizen buyer, the Debt-Service-Ratio (TDSR) stress test applies with a default interest-rate assumption of 3.25% above the prevailing lending rate, effectively capping debt servicing at 60% of gross monthly income. At a shophouse price in the region of S$15 million, a typical mortgage would range from S$10.5 million to S$12 million (70–80% LTV), depending on the lender and loan tenure. Monthly servicing obligations at current interest rates would typically fall in the region of S$45,000 to S$55,000, implying a gross monthly household income requirement of approximately S$75,000 to S$92,000 to comply with TDSR constraints. Additionally, the ABSD liability of approximately 20% (S$3 million) must be funded from equity or other sources, representing a substantial capital requirement beyond the mortgage advance. Buyers with existing residential mortgages face tighter TDSR headroom, as their existing debt obligation is aggregated with the proposed mortgage into the 60% cap. Professional mortgage advisory and tax-planning assistance is strongly recommended to ensure that financing structures comply with regulatory requirements and optimise the buyer's overall capital efficiency.

How does this shophouse compare to nearby competing developments or properties in Tanjong Pagar?

Prime Tras Street Shophouse competes primarily with other heritage shophouses in the immediate Tanjong Pagar and Outram vicinity, rather than with modern commercial or residential developments, given its unique asset class. Comparable properties include shophouses on Duxton Road, Tanjong Pagar Road, or Keong Saik Road, which similarly offer heritage character, street presence, and MRT accessibility. Compared to newer, purpose-built office or retail units in the district, shophouses typically command premium valuations due to their scarcity, flexibility, and historical appreciation record. The key competitive distinction is that Tras Street specifically benefits from exceptionally high foot traffic, a diverse commercial base, and established consumer familiarity, whereas shophouses on parallel streets may lack equivalent retail vitality. Modern office buildings in the CBD offer superior building services and operational standardisation but lack the heritage appeal and mixed-use flexibility of a shophouse. Investors choosing between shophouse ownership and conventional commercial real-estate investment trusts (REITs) should weigh direct asset control and operational upside potential against the liquidity and passive-income characteristics of REITs. Overall, the shophouse asset class remains distinctive and underinstitutionalised relative to modern commercial stock, which can support long-term capital stability.

Are there particular floor levels or unit stacks within a shophouse that offer better value or investment returns?

Within a 3.5-storey shophouse typology, ground-floor space typically commands the highest rental rates and generates the strongest foot-traffic revenue due to immediate street visibility and customer accessibility. A ground floor occupied by a high-turnover F&B operator or established retail tenant can generate rental yields and capital contribution that substantially exceed those of upper-storey office or residential spaces. The first and second upper storeys typically attract office tenants, creative-industry operators, or professional-services users, who value natural light, views, and the status associated with a Tras Street address, but may pay lower absolute rents than ground-floor commercial operators. The half-storey (potentially a mezzanine or rooftop level) may be constrained by height, floor-area limitations, or limited natural light, and is typically the lowest-yielding component. From a value perspective, purchasers prioritising capital appreciation and long-term strategic positioning should ensure that the ground floor is leased to a stable, creditworthy tenant with an established operational track record, as this component often carries 40–50% of the property's overall value and income generation. Upper-storey tenancy mix is secondary in importance but nonetheless contributes materially to aggregate rental yield and property marketability.

What future supply pipeline or zoning changes might affect the investment outlook for Tanjong Pagar shophouses?

Tanjong Pagar is designated as a conservation precinct, which means the Urban Redevelopment Authority (URA) strictly controls demolition and alterations to preserve the heritage character of the district. This regulatory framework effectively constrains the supply of new shophouse-equivalent space, as wholesale redevelopment is highly restricted and the existing stock cannot be materially added to. Conversely, conservation policies also provide stability and protection against disruptive neighbourhood change, which underpins long-term value retention. The Master Plan zoning for the area remains predominantly commercial/mixed-use with residential overlay permitted in upper storeys, a designation that is unlikely to be materially altered given the strategic importance and heritage status of the neighbourhood. Future demand drivers will centre on sustained economic activity in the CBD and Raffles Place, continued foot-traffic generation from dining and entertainment users, and any macroeconomic trends affecting commercial real estate broadly. The lack of a significant development pipeline in the immediate Tanjong Pagar precinct means competition from new supply is minimal, a factor that typically supports resilience in pricing for existing heritage shophouses. Buyers should factor in the possibility of evolving retail and F&B trends, which could affect ground-floor tenant demand and leasing dynamics, but the fundamental structural supply constraint and conservation framework suggest that well-maintained shophouses in prime locations will remain defensible long-term assets.

Shophouse At Tras Street, Tanjong Pagar — From S$15.9M