Applications approved for offices & commercial schools in shop-h

by luxuryasiahome ⋅ June 8, 2012

 

The Urban Redevelopment Authority has approved 10 applications from shop-house owners to use their upper floors as offices and commercial schools.

This follows the relaxation of rules to allow the premises to be used as offices and commercial schools.

Property analysts said the take-up rate is encouraging.

The use of shop-houses as business space is becoming popular, but the number of such units has not been increasing.

Shop-house rentals in the CBD area to rise by some 20 to 30 per cent over the past two years due to the shortage of supply.

Currently, a shop-house’s first floor costs some S$7-S$10 per square foot while the second floor costs S$4-S$6 per square foot for rent.

Shop-house owners are allowed to use their first floor for any type of business activity.

The upper floors are restricted to home offices, student care centres, aged homes, community institutions, hostels, serviced apartments and hotels.

With the new rules, shop-house owners have more options to use their space.

Permission is required too from the Land Transport Authority to have either an office or commercial school on their upper floors. This is to prevent traffic congestion around the property.