Upper Serangoon Shopping Centre Hits the Market: Can It Fetch S$260 Million?

In a significant move for Singapore's real estate landscape, the freehold Upper Serangoon Shopping Centre is entering the collective sale market with a guide price of S$260 million. Completed in 1982, this six-storey strata-titled building could set the stage for an exciting transformation.

In addition to the shopping centre, sellers are also offering an adjacent plot of land for private treaty sale. If these two properties are combined, they would create a substantial total site area of 5,443.3 square metres. This opens the door for a mixed-use development that could reshape the community, according to CBRE, the exclusive marketing agent for the property.

Michael Tay, head of capital markets at CBRE Singapore, noted that they plan to submit an outline planning permission to authorities for the redevelopment, which could feature a mix of serviced apartments, retail outlets, and residential units. Initial estimates suggest that the redevelopment could yield approximately 154 residential units alongside 56 serviced apartments, complemented by 12,000 square feet of commercial space, subject to official approval.

With an expansive gross floor area of 176,792 square feet, the S$260 million guide price translates to approximately S$1,471 per square foot based on the plot ratio. This valuation marks a potential premium of up to 50% over the current market value, according to Mathews Thomas, chairman of the collective sale committee.

Interestingly, the shopping centre has seen limited activity in its residential units, with just two sales recorded in the past decade. Of note, a sixth-floor unit measuring 1,292 square feet was sold in November 2021 for S$1.4 million, translating to around S$1,107 per square foot. The commercial sector has been more active, with 22 units sold during the same timeframe, including four transactions occurring in 2024. The most recent sale involved a third-floor unit of 248 square feet, which fetched S$580,000 at S$2,343 per square foot.

This collective sale marks the first attempt to sell the shopping centre en bloc, with almost 90% of owners having given their consent, significantly surpassing the 80% threshold required for a successful sale. Previously, efforts to sell the property fell short due to insufficient owner consensus.

Thomas views the asking price as “conservatively priced,” aimed at attracting boutique developers who may bring innovative concepts to the area, particularly in light of the anticipated relocation of Paya Lebar Airbase, which is expected to happen in the 2030s. This relocation is anticipated to free up substantial land space for new homes—up to 150,000, as stated by former Prime Minister Lee Hsien Loong during his 2022 National Day Rally.

As the tender for Upper Serangoon Shopping Centre opens on April 8 and closes on June 10, interest is expected to be robust from both local and international buyers. With the area's potential for transformation heightened due to the airbase relocation, the buzz around this property sale is palpable. Could this be a golden opportunity for developers to capitalize on a prime location ripe for redevelopment? Stay tuned!