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A coffeeshop located at Block 201 Tampines Street 21 has been sold for a record S$41,682,168.
8world reported that a caveat was lodged in April, and that the transaction is expected to be completed in July.
According to PropertyGuru, a caveat is a legal document to protect buyers’ interests in a property for sale, and lodging one with the Urban Redevelopment Authority (URA) secures the property for the buyer.
Record price
The 604sqm (6501.4sqft) coffeeshop comprises of 18 stalls and is the biggest coffeeshop along Tampines Street 21.
According to the Singapore Land Authority (SLA), the coffeeshop has 76 years left on its lease.
The price per square foot (psf) works out to S$6,964, which, according to URA and real estate firm ERA's data, is comparable to prices of retail spaces in Far East Plaza and Lucky Plaza.
Data from the first half of the year show that shop spaces transacted at between S$4,000 to S$8,000 psf.
8world reported that the deal breaks the record previously set in 2015.
Back then, a coffeeshop located at Block 155 Bukit Batok Street 11 was sold for S$31 million.
Stallholders pulling out due to increased rent
Stallholders at the coffeeshop have told 8world that rent has increased after the coffeeshop changed hands two months ago.
One such hawker, who declined to be named, shared that the previous landlord did not "significantly" increase rent prices in the 23 years that she has been operating there.
However, the new landlord asked that the rental for her stall be increased from S$6,000 to S$10,000. The rent excludes other charges and miscellaneous fees.
She said she managed to cut the rental down to S$9,000 after "extensive negotiations" with the new landlord.
Even with the reduction, she finds the increased rental "difficult" to bear, and will consider winding up her business if the next six months prove to be too challenging.
Another stallholder, who also declined to be named, told 8world that "many" of them have decided to give up their stalls because of the huge increase in rent.
Top photo from 8world.