This works out to about $2,259 per square foot based on the property's existing's gross floor area (GFA) of 6,862 sq ft spread across three storeys and an attic.
Under Master Plan 2008, the property, which has land area of 2,606 sq ft, is zoned for residential use with commercial on the first storey and has a 3.8 plot ratio.
Based on this, there is potential to build a further GFA of about 3,000 sq ft at the rear, which would take the property up to five storeys. Based on the maximum 9,903 sq ft GFA and assuming it costs about $2 million to build this (development charge is not payable), the $15.5 million asking price translates to $1,767 psf on GFA.
Located about 300 metres from the upcoming Fort Canning MRT Station on the Downtown Line, 15 Mohamed Sultan is just off River Valley Road and close to the Singapore River.
The property is being sold by a local investor by a tender exercise conducted by Jones Lang LaSalle. The tender closes on Feb 20.
"This offering is a rare opportunity to acquire a prime shophouse as properties along Mohammed Sultan Road are rarely for sale. The location has been transforming as new food & beverage establishments, hotels and residential blocks have been completed.
"Furthermore, the ability to extend the rear of the property up to five floors, has potential to further enhance the future value of the property," said Ashish Manchharam, regional director at JLL.
Source: Business Times, 8 Jan 2013