ERA Realty Network is currently offering a unique opportunity to purchase a collection of 14 retail shops located at Peninsula Plaza, Sim Lim Square, and Far East Plaza. These properties, with a total price of $26.46 million, are available for sale through an expression of interest (EOI) exercise.
Of the 14 units, two are situated at Peninsula Plaza, a 999-year leasehold mixed-use development on North Bridge Road. These adjoining ground-floor shop units have a combined strata area of approximately 990 sq ft and are currently asking for $8 million, or $8,081 psf.
Peninsula Plaza, completed in 1980, is a 30-storey commercial development that features a six-story retail podium and a 24-storey office tower. Its prime location is connected to the City Hall MRT Interchange Station, providing easy access to both the North-South and East-West lines.
At Sim Lim Square, 11 strata units, all on the fifth floor with a total strata area of 5,081 sq ft, are also available for sale. Zoned for commercial use, these units have a 99-year lease that commenced in April 1983, leaving approximately 57 years remaining. The majority of these units are currently tenanted. The shops face the mall’s main atrium and have direct access from the escalators and lifts.
These Sim Lim Square units can be purchased collectively or individually, with prices starting from $840,000 for a single unit. The entire portfolio is priced at $15.855 million, which ERA states is a 20% discount from its latest valuation. This works out to $3,120 psf on the strata area.
Sim Lim Square, completed in 1987, is a strata-titled commercial development with 492 units spread across six floors and two basement levels. It is located on Rochor Canal Road in District 7.
Lastly, a freehold retail unit at Far East Plaza on Scotts Road is also available for sale. Situated on the second floor, this unit offers a strata floor area of 355 sq ft and faces the escalator near the mall’s main entrance. It is currently priced at $2.6 million, or $7,324 psf.
Far East Plaza, completed in 1982, is a freehold mixed-use development that comprises a five-storey retail mall and serviced apartments. Its prime location is within walking distance of Orchard Road MRT Station.
According to Donald Goh, Director of Capital Markets and Investment Sales at ERA, the properties for sale at Peninsula Plaza, Sim Lim Square, and Far East Plaza will attract interest from both property investors and business owners. Goh also notes that strata retail sales in the Downtown Core and Orchard Planning Area remained resilient last year, with 28 and 33 deals recorded in each area, respectively. He adds, “A ground floor unit at Lucky Plaza was sold for $15,242 psf while units at Orchard Towers and The 101 were sold for $5,309 psf and $5,657 psf, respectively, a testament that strata retail shops are still an attractive investment.”
When considering an investment in a condo, it is crucial to assess its potential rental yield. Rental yield refers to the annual rental income expressed as a percentage of the property’s purchase price. In Singapore, condos can offer varying rental yields based on factors such as location, property condition, and market demand. Generally, areas with high rental demand, like those near business districts or educational institutions, tend to provide better rental yields. To gain a better understanding of a condo’s rental potential, thorough market research and consultations with real estate agents can be beneficial. Additionally, keeping an eye out for new condo launches in the market can also provide valuable insights.
The EOI for these properties will close on April 17 at 3pm. Interested parties can check out the latest listings for Peninsula Plaza properties on ERA’s website.