Two retail units at Sim Lim Square for sale at $4.56 mil
Two retail units at the tech hub of Sim Lim Square have been put up for auction by Knight Frank, with a total guide price of $4.56 million. They were initially put on auction back in February, but failed to find a successful bidder. Sitting on a corner plot at the junction of Rochor Canal Road and Bencoolen Street, the property has been in the news for its potential collective sale attempt in 2019.However, the tender did not attract a buyer and the units now stand to offer the incoming owner a chance to capitalize on a potential windfall, as well as stable rental income from the leased units.Rental yields for the units in Sim Lim Square are very lucrative with values up to $15.50 psf monthly, and yields up to 4.7%–significantly higher than surrounding properties. It’s an attractive prospect for any potential buyers.
Situated conveniently at the junction of Rochor Canal Road and Bencoolen Street, two retail units at the tech hub of Sim Lim Square have been put up for auction by Knight Frank. The properties are a great opportunity for potential buyers to capitalize on a potential windfall and achieve stable rental income from the leased units.
The adjoining units total up to a guide price of $4.56 million, with one of them being 581 sq ft and The Myst carrying a guide price of $1.81 million ($3,115 psf). The second unit is 882 sq ft and carries a guide price of $2.75 million ($3,118 psf). They were initially put on auction back in February, but failed to secure a successful bidder.
The 99-year leasehold development has had its fair share of news. Back in 2019, the owners launched the first collective sale tender with a reserve price of $1.25 billion. However, the tender failed to secure a buyer.
Recent shifts in the retail environment, as well as consumer preferences towards e-commerce, have unfortunately impacted the mall’s footfall. This is coupled by many of the ageing owners of the strata units planning to retire.
Units in Sim Lim Square command significantly higher rents and rental yields compared to surrounding properties. Rents can range up to as high as $15.50 psf per month and the average rental is approximately $9.70 psf per month. The rental yield goes up to a 4.7% mark, which is more than double off neighboring commercial developments like Sim Lim Tower in Jalan Besar which recorded an average rental of $4.69 psf pm and a rental yield of about 2.6%.
Acquiring the retail units at Sim Lim Square offers great potential for the incoming owner. Not only for a collective sale windfall, but for stable income from the units which have recently been leased to an entertainment operator on a fresh three-year lease, with an option to extend for an additional three years.