Rare Portfolio of HDB Shophouses Hitting the Market

A portfolio of six HDB shophouses held by the Royal Group has been launched for sale with a combined guide price of S$73 million. The assets are spread across three mature, high-footfall locations: Toa Payoh, Ang Mo Kio and Tanjong Pagar.

The portfolio belongs to Royal Group, the Singapore-based single-family office founded by billionaire Asok Kumar Hiranandani, and is being marketed by Savills Singapore.

Where Are the Six Shophouses Located?

The properties are situated in established heartland and city-fringe hubs with strong catchment and steady tenant demand:

• 190 Toa Payoh Lorong 6 – Ground-floor HDB shophouse near HDB Hub, subdivided into several units and fully leased, with a guide price of about S$12 million.
• 702 Ang Mo Kio Avenue 8 – Large-format shophouse beside AMK Hub, around 4,000+ sq ft, with a guide price of roughly S$36 million.
• 705 Ang Mo Kio Avenue 8 – Another HDB shophouse close to AMK Hub, guide price around S$10 million.
• Three HDB shophouses at Tanjong Pagar Plaza – Each with a guide price of about S$5 million, enjoying strong visibility near Tanjong Pagar Road and supermarket trade.

Investors can acquire the assets individually or as a full portfolio, offering flexibility depending on ticket size and strategy.

Yield, Income Profile and Investment Angle

According to marketing information, the shophouses are largely fully leased with a diversified tenant mix, delivering an estimated gross yield of around 4%, with potential upside from rental reversion and further space optimisation.

For income-focused buyers, this portfolio offers:

• Immediate rental income from existing leases.
• Upside via rental reversion when older leases are renewed at market rates in mature, high-demand estates.
• Potential to reconfigure or further subdivide larger spaces to drive rent per square foot.

Why HDB Shophouses Are So Sought After

HDB shophouses form a very small and tightly held segment of Singapore’s commercial market.

• Only about 8,500 privately held HDB shophouses exist island-wide, making them structurally scarce.
• They usually sit in dense heartland catchments with built-in footfall.
• They offer buyers a purely commercial play without additional residential ABSD concerns.
• Ground-floor frontage near MRT, malls or markets enhances both rental resilience and exit value.

For family offices and private investors, such portfolios are attractive as defensive, income-generating assets with long-term capital preservation potential.

Who Might This Portfolio Suit?

The Royal Group portfolio is likely to attract:

• Family offices and high-net-worth investors seeking stable Singapore-dollar income backed by real assets.
• Private funds and boutique REIT-style vehicles looking to assemble a shophouse platform.
• Business owners who may want to own and occupy one or more units while collecting rent from adjoining tenancies.

Key Considerations for Buyers

Before committing to a commercial HDB shophouse, investors should evaluate:

• Remaining lease balance and impact on valuation and financing.
• Existing tenant profile, lease expiry schedule and rent sustainability.
• Restrictions on use, renovation and signage under HDB/URA rules.
• Comparison of per-square-foot pricing vs recent transactions in Toa Payoh, Ang Mo Kio and Tanjong Pagar.

With a headline price of S$73 million, the full portfolio represents a meaningful but manageable ticket size for institutional-grade private capital.

Exploring HDB Shophouses or Other Income Assets?

Whether you are looking at this Royal Group portfolio or other commercial HDB units, it helps to benchmark:

• Current yields vs financing cost.
• Lease profile and tenant risk.
• Long-term positioning of the estate (upgrading, transport, rejuvenation).

If you’d like a confidential review of your commercial acquisition or exit plans, we can walk you through recent transactions, yield expectations and buyer demand for HDB shophouses.