Buildings include Katong Shopping Centre; sales could help rejuvenate area and boost image
FACED with flagging businesses and dwindling human traffic, the shop owners of several commercial buildings in Katong are coming together to sell their properties en bloc.
This has led to renewed interest in the old East Coast hot spot recently, sparking hopes among residents and shopkeepers nearby that the area - famed for its good food and old-world charm - will get the rejuvenation that it needs to boost its image.
At least five commercial buildings along Mountbatten Road and East Coast Road have, or are in the process of engaging marketing agents to launch their collective sales. These include Katong Mall, Paramount Hotel and Shopping Centre, Roxy Square, Katong Plaza and the iconic Katong Shopping Centre, said Mr Lui Seng Fatt, the regional director and head of investments at Jones Lang LaSalle.
In its heyday, Katong Shopping Centre was the heart and soul of the East. But as the years wore on, the lack of entertainment facilities and an attractive retail mix made it a poor rival to malls like Parkway Parade.
Many of these buildings in Katong are more than 20 years old and, in the case of Katong Shopping Centre, which opened in 1973, more than 30.
Dr Lim Un Huat, an owner of several shops at Katong Mall, told The Straits Times most shop owners were in favour of a collective sale, and were waiting for the right price to sell.
Mr Lui said the 'tired-looking' buildings were overdue for a revamp, especially since residential projects in the area have gone upmarket.
Prices of homes in the Katong, Meyer and Amber Road residential enclave have soared recently with the property boom. The area's proximity to the upcoming Integrated Resort in Marina Bay is an added lure.
United Industrial Corporation's One Amber and Grand Duchess sold out around $700 to $800 per sq feet (psf) recently. CapitaLand's The Seafront on Meyer and GuocoLand's The View @ Meyer fetched new highs of between $1,500 psf and $1,800 psf.
While the shop owners do not expect to make a 'huge windfall', Mr Lui said selling en bloc would help them unlock the value of their shops.
He estimates that the prices transacted would be between $500 psf and $1,000 psf, depending on the building.
Colliers International's executive director for investment sales, Mr Ho Eng Joo, said Katong's rejuvenation would be a 'natural progression' following the influx of residents living in the area's new condominiums.
'Katong's residential area is getting quite vibrant, so the commercial side has to catch up now,' he said.
The only setback, he added, would be the new rules for collective sales - expected to kick in next month - which will prolong the sale process.
But in three or four years' time, Katong could be transformed, he added.
However, while some property consultants remain optimistic about Katong's future, others remain cautious.
Director of marketing and business development Ku Swee Yong at Savills Singapore said the area was a 'bit of a mixed bag' - comprising offices, residential apartments, hotels and retail space - which makes it 'neither here nor there' for redevelopment.
'The area's physical limitations mean a very creative approach is needed to redevelop it,' he added.
From a conservation perspective, the revitalisation of Katong is desirable if done properly, said Singapore Heritage Society president Kevin Tan.
Over the years, the retail business in the area has withered, and given way to maid agencies, pubs and video arcades. But this can be changed by injecting some new life and a new trade mix into the area, he added.
He hopes, however, that the architecture of Katong Shopping Centre will be conserved as it was 'very important in East Coast's history'.
Shop owner Dr Lim concurred: 'We all hope to bring back the hustle and bustle of the old Katong.'
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MOVING FORWARD
'Katong's residential area is getting quite vibrant, so the commercial side has to catch up now.' MR HO, Colliers International executive director for investment sales
OBSTACLES TO BEAT
'The area's limitations mean a very creative approach is needed to redevelop it.'
MR KU, Savills Singapore director of marketing and business development, on the area's mixed developments
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