The curious case of multi-million-dollar coffeeshops in Singapore
PHOTO: Stackedhomes
PUBLISHED ONDecember 18, 2023 4:36 AMByRyan J
If anything will make me believe in Feng Shui, it’s coffee shops.
Take, for instance, this coffee shop which I frequent, which was sold for $40.5 million. To begin with, I personally disagree with most of the comments on why exactly that coffee shop is so valuable.
Because it has a KFC and draws students? X to doubt (*gamers of LA Noire would know this). There’s a KFC in Nex, which — as the same article will tell you — is about five minutes away.
That’s where I see students, because like me, if they want to eat at KFC, they’ll go to the air-conditioned one in Nex (which is also next to Jollibee and Yoshinoya, so you can even mix-and-match your meal).
A lack of competition nearby? Also dubious. There are at least three other coffee shops nearby, at least one of which is far more packed.
As for being near Nex? To me, that’s even less reason for it to be valuable, because have you seen the number of food options at Nex? There are TWO giant food courts in it.
One day of food supplies to Nex could probably feed a small village for a week. The last place I would set up a coffee shop is within walking distance of Nex.
But I’m wrong, and the market says so.
None of my reasoning, which I assert is solid "on-the-ground, I-live-here" reasoning, matters. Not compared to the fact that someone bought it for $40.5 million, because as the old saying goes, everything is worth what someone will pay for it.
There are other coffee shops here that are just as popular. There are coffee shops minutes away with (some) better stalls. Are those worth over $40 million? I doubt so. But why, when they’re practically in the same location?
This also brings up tangentially related mysteries, such as:
- Why do some Singaporeans always walk to a further coffee shop, even if the food at a closer coffee shop is of similar quality?
- What makes one cai png stall work, while another — which may be less than 100 metres away with the same dishes — fail?
- Why do the "old uncles who stay past 11pm" do so only at one coffee shop, and not the one right next to it?
- Why is the coffee shop that’s closer to the JC/office/factory etc. not always more valuable than the one further from it*?
*Personal anecdote from a commercial investor back in 2011 — their group’s coffee shop, which was closest to both a JC and some offices, sold for about two-thirds of the price of another coffee shop, that was 15-minutes further on foot.
What makes one coffee shop more valuable than another is a total mystery. Check out the list of coffee shops mentioned in the article, which sold for $40 million or more. Are any of them particularly famous? I bet most readers haven’t ever heard of them.
So when someone brings up Feng Shui for coffee shops, I think maybe that’s a better analytical approach than anything I have. This is also why I stick to residential properties, by the way — while residential isn’t always a saner market, there’s more consistency in its brand of craziness.
I am very curious about these coffee shops though, anyone in this market that is willing to share, reach out to me please! It’s no wonder at these prices the prices of food at these coffee shops have begun to rival those that you see at food courts.
Weekly sales roundup (Dec 4 — Dec 10)
Top 5 most expensive new sales (by project)
| PROJECT NAME | PRICE $ | AREA (SQFT) | $PSF | TENURE |
| WATTEN HOUSE | $7,595,000 | 2368 | $3,207 | FH |
| MIDTOWN MODERN | $4,319,000 | 1464 | $2,950 | 99 yrs (2019) |
| 19 NASSIM | $3,453,280 | 969 | $3,565 | 99 yrs (2019) |
| LENTOR MODERN | $3,316,500 | 1528 | $2,170 | 99 yrs (2021) |
| BLOSSOMS BY THE PARK | $3,188,000 | 1302 | $2,448 | 99 yrs (2022) |
Top 5 cheapest new sales (by project)
| PROJECT NAME | PRICE $ | AREA (SQFT) | $PSF | TENURE |
| THE LANDMARK | $1,414,195 | 495 | $2,856 | 99 yrs (2020) |
| THE MYST | $1,480,000 | 678 | $2,182 | 99 yrs (2023) |
| PINETREE HILL | $1,690,000 | 700 | $2,415 | 99 yrs (2022) |
| THE LANDMARK | $2,009,000 | 764 | $2,629 | 99 yrs (2020) |
| THE BOTANY AT DAIRY FARM | $2,131,000 | 1076 | $1,980 | 99 yrs (2022) |
Top 5 most expensive resale
| PROJECT NAME | PRICE $ | AREA (SQFT) | $PSF | TENURE |
| WATERFALL GARDENS | $7,100,000 | 3380 | $2,101 | FH |
| LEONIE TOWERS | $5,900,000 | 2960 | $1,993 | FH |
| BEAVERTON COURT | $5,555,000 | 3122 | $1,780 | FH |
| SUTTON PLACE | $5,168,000 | 3305 | $1,564 | FH |
| THE SAIL @ MARINA BAY | $5,000,000 | 2056 | $2,432 | 99 yrs (2002) |
Top 5 cheapest resale
| PROJECT NAME | PRICE $ | AREA (SQFT) | $PSF | TENURE |
| SUITES @ KOVAN | $595,000 | 366 | $1,626 | FH |
| KINGSFORD WATERBAY | $698,000 | 474 | $1,474 | 99 yrs (2014) |
| H2O RESIDENCES | $720,000 | 527 | $1,365 | 99 yrs (2010) |
| LAUREL TREE | $726,888 | 463 | $1,570 | FH |
| ALEXIS | $750,000 | 398 | $1,883 | FH |
Top 5 biggest winners
| PROJECT NAME | PRICE $ | AREA (SQFT) | $PSF | RETURNS | HOLDING PERIOD |
| THE SAIL @ MARINA BAY | $5,000,000 | 2056 | $2,432 | $2,700,824 | 19 Years |
| NATHAN PLACE | $3,650,000 | 2024 | $1,804 | $2,076,890 | 20 Years |
| SUTTON PLACE | $5,168,000 | 3305 | $1,564 | $2,018,000 | 17 Years |
| THE SAIL @ MARINA BAY | $4,500,000 | 2045 | $2,200 | $1,429,920 | 18 Years |
| ENG HOON MANSIONS | $2,180,000 | 1421 | $1,534 | $1,390,000 | 17 Years |
Top 5 biggest losers
| PROJECT NAME | PRICE $ | AREA (SQFT) | $PSF | RETURNS | HOLDING PERIOD |
| LUMIERE | $1,090,000 | 635 | $1,716 | -$240,000 | 13 Years |
| GILSTEAD TWO | $1,675,000 | 775 | $2,161 | -$49,200 | 13 Years |
| KINGSFORD WATERBAY | $1,145,000 | 850 | $1,346 | -$17,000 | 5 Years |
| SANDY EIGHT | $870,000 | 506 | $1,720 | -$10,000 | 6 Years |
| AFFINITY AT SERANGOON | $910,000 | 538 | $1,691 | $44,000 | 3 Years |
Transaction breakdown
ALSO READ: Serangoon coffee shop sells for eye-watering $40.5 million
This article was first published in Stackedhomes.