Another coffeeshop has changed hands at an eyebrow-raising price two days after reports of a Tampines coffeeshop being sold for a record S$41.6 million emerged.
This time around, the spotlight is on the one located at Block 848 Yishun Street 81, which changed hands at S$40 million.
Higher per square foot price than the Tampines coffeeshop
8world reported that the 397sqm (4273.27sqft) coffeeshop was sold at a higher per square foot (psf) price than the one in Tampines.
The Tampines coffeeshop spans 604sqm, which means the new owner paid S$6,964 psf. In comparison, the Yishun coffeeshop's psf price is S$9,361.
According to the Singapore Land Authority (SLA), the coffeeshop has 78 years left on its lease.
It is reported that a caveat was filed in May, and the deal has not been completed.
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.
Rent remains unchanged -- for now
Vendors at the Yishun coffeeshop told 8world that rent prices, along with the operator, have remained unchanged.
They expect negotiations for their new rental contracts to take place in July or August, and will then decide if they will remain at the coffeeshop depending on the proposed conditions.
8world reported that the coffeeshop's current operator, KPT Investment, took over the space at the end of 2007 and paid S$6 million for the space.
Industry insiders do not expect food prices to rise significantly
8world also spoke to reps from the Foochow Coffee Restaurant & Bar Merchants Association and Kheng Keow Coffee Merchants Restaurant & Bar-Owners Association, who both believe that the recent trend of coffeeshops being sold at record prices will not have a significant effect on food prices.
Instead, they believe that the bulk of the burden will fall on stallholders.
Top photo from Shin Min Daily News.