Jack Ma’s wife has bought three adjoining shops on Duxton Rd
The wife, Jack Ma co-founder and CEO of Alibaba Group, bought three adjacent storehouses along Duxton Road.
The Business Times understands Zhang Ying paid S$45 to S$50 Million for 70, 71 & 72 Duxton Road. These properties are located in commercial zones and have 99-year leasehold terms starting September 1988.
These shophouses, which have a combined land area of 3 239 square feet (sq. ft), each feature three floors plus an attic. Nearing completion is a major refurbishment.
Observers in the market believe that the price is high, and that the conservation shophouse deals have usually not exceeded S$4,000 for a built-up area. One thing to keep in mind is that the trio of shophouses Zhang bought was newly refurbished.
Urban Redevelopment Authority approved an integrated development involving three shophouses. On the first floor, the use was changed from shop into restaurant. The upper levels of the building are for offices. A lift has been added to the renovation.
Kerry Hill Architects has been engaged by the entity, which is connected to a Singapore based property investment company, for this renovation. The total built up area of these shophouses is estimated to be around 10,700 sq. ft. The properties are situated in the Tanjong Pagar Conservation Area.
Zhang is said to have paid S$4,200 – S$4,600 for each square foot of the shophouses.
A special buyer has been identified who is ready to pay an inflated price for a house in a quaint, discreet area of District 2.
Ma’s may have intended that the asset be used for their occupation. (For instance, to use it as their private clubhouse in order to entertain friends and associates. This means they may end up renting out the property.
The seller acquired three adjacent shops for S$22.2million through separate deals. It acquired 70 Duxton Road at a cost of S$7.55M from Alan Choe’s company, which is owned by the former URA chief and chairman of Sentosa Development Corporation.
This is the lowest quarterly number since 2010. The property agency attributed this to the softer economic outlook as also the increased due-diligence after the anti money laundering blitz last August.
The seller acquired 71 Duxton Road, for S$7.35 millions, from a medical doctor and No.72, for S$7.33 million, from Kwek Lee Hoon. Kwek Lee Hoon is the sister-in-law of Hong Leong Group Executive Chairman Kwek Leng Beng.
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In the fourth quarter, 2023, the number of transactions on the shophouse market dropped dramatically. PropNex Realty, based upon caveats analysis, published a report in late October that revealed only 15 sales of shophouses in the last quarter of 2023.
Shophouses recorded 131 sales totaling S$1.14 billion in 2023. This was down from 191 sales worth S$1.63bn in 2022.
This was the lowest volume of annual sales since 2019, when caveats reported that 123 shophouses brought in a total S$916 Million.
