Marine Parade HDB shop sold for $25m: Rare strata retail unit sale in Singapore

A HDB shop in Marine Parade was sold for $25 million by the auction team at Knight Frank Singapore. The 17,825 sq ft unit at 86 Marine Parade Central has been sold to a training centre operator, and the sale price translates to $1,402 psf.

The large, single-storey commercial unit had been occupied by Popular bookstore for over 37 years until the store closed in 2023, and it had been vacant for several months before it was listed for sale, according to EdgeProp.

The unit was put up for sale by the owner in October 2025 and marketed by Knight Frank. At the time, the unit had an asking price of $38 million ($2,132 psf).

Knight Frank had highlighted the size and layout of the unit, which gives the new owner flexibility to explore various uses - including F&B, a showroom, or a co-working space - subject to approval.

Located within Marine Parade Promenade, a commercial and retail cluster next to Parkway Parade, the unit is on the second floor in one of the six commercial blocks that make up the cluster.

The property has a 83-year leasehold tenure that started in 1993, and it has about 50 years left on its lease.

This commercial HDB cluster is next to most of the amenities and retail buildings in this area, including Marine Parade Central Market and Foodcourt, a Fairprice Finest, IMall, and Parkway Centre. 

The new Marine Parade Community Building is also in the vicinity. Nearby schools include Tao Nan School, CHIJ Katong Primary School and Tanjong Katong Primary School.

Public transport access to this part of the East Coast was significantly elevated when Marine Parade MRT station on the Thomson-East Coast Line was completed in June 2024.

The station is three stops away from the developing Bayshore precinct - the newest sea-facing neighbourhood in the East - where new BTO developments and condos like Vela Bay are being developed.

The enduring appeal of HDB shops for property investors

The sale of a strata retail unit of this size is rare, especially for HDB shops, considering that the Government halted the sale of shops in HDB estates to private owners in 1998.

There are about 8,500 privately held HDB shops compared to the 7,000 units islandwide which are directly leased from HDB. This makes HDB shops one of the most tightly held commercial assets in Singapore.

Unlike residential properties, HDB shops do not attract any additional buyers' stamp duty, which makes it an attractive investment option for locals and foreigners.

Historically, there are a handful of reasons why HDB rental shops have lower entry prices compared to other types of commercial units.

First, newer HDB shops tend to be located in recently developed estates such as Punggol, Bidadari, or even Tengah. This offers a large captive catchment for retailers to capitalise, but each tenancy only lasts about three years before it is up for renewal at HDB's discretion.

For HDB shops that were sold, their rental rates are determined by their respective owners, similar to private properties. In the past year, privately held HDB shop rents have doubled. 

The median rentals for HDB shops owned by private landlords rose from $3.51 per sq ft (psf) in the second quarter of 2024 to $7.34 psf in the second quarter of 2025.

In response to parliamentary queries about the rise in rents at some HDB shops, the government announced in September 2025 that it will selectively acquire privately held HDB shops if needed, to meet the demand for new retail supply.

There are around 740 privately-held HDB shops sold on 30-year leases. The remainder of around 7,700 privately-held HDB shops were sold on 99-year leases, and have more than 30 years of lease remaining.

The scarcity of HDB commercial units due to the limited supply, combined with longer lease structures and gross yield, results in a constant flow of tenant demand.

Why Marine Parade commands a premium

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The East Coast region has seen an uptick in redevelopment and rejuvenation schemes, which look set to reshape the area with new mixed-use enclaves and more diverse private and public housing neighbourhoods. 

Significant plans include the development of Bayshore and the 'Long Island' project, a 800ha reclamation project off the East Coast from Marina East to Tanah Merah.

Marine Parade is already a popular neighbourhood, anchored by the new MRT station and landmark shopping malls like Parkway Parade. But the transformation of the area over time is likely to generate higher rental yield potential for landlords. 

Based on previously listed transactions, the existing gross yield that some landlords can reap is reportedly as high as 4per cent.

The latest sale of the 17,825 sq ft shop unit in Marine Parade Promenade signals a growing appetite for suburban commercial assets, supported by its location in a well established mature estate with a strong resident base. 

This article was first published in Stackedhomes.