When contemplating an investment in a condominium, it is crucial to analyze the potential rental yield as well. This refers to the annual income that can be generated from renting out the property, expressed as a percentage of its purchase price. In Singapore, the rental yields for condos can vary significantly depending on several factors, including location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, offer better rental yields. To gain a better understanding of the rental potential of a specific condominium, it is advisable to conduct thorough market research and seek advice from real estate agents. With the addition of New Condo Launches, which can also provide valuable insights, investors can make more informed decisions about their condo investments.
Investing in a Singapore condo offers numerous benefits, and one of them is the ability to use its value to invest in other opportunities. This allows investors to grow their real estate portfolio by using their condos as collateral for financing additional investments. However, like any investment strategy, there are risks involved that need to be carefully considered. It is crucial to have a solid financial plan in place and to thoroughly assess the potential impact of market fluctuations before implementing this approach. With a well-planned strategy and the right guidance from experts at Singapore Condo, this leveraging technique can potentially yield higher returns.
ERA to Feature Adjacent Retail Units at Next AuctionThe upcoming auction hosted by ERA on Feb 27 will highlight a pair of retail units on the third floor of Sim Lim Square with a combined guide price of $3.38 million.The two units, located next to each other, offer a total of 1,528 sq ft. The larger unit measures 958 sq ft and is priced at $2.08 million ($2,171 psf), while the smaller unit is 570 sq ft and has a guide price of $1.28 million ($2,246 psf).This is the first time that both units will be featured in ERA’s auction listings as they are being sold by the owner. They can be purchased separately or together. According to Alison Lee, the assistant vice president of auction and sales at ERA, the units are competitively priced to facilitate a quick sale. “They are priced below the market average to entice potential buyers,” she explains.Recent data from EdgeProp Singapore has shown that the average transacted price for retail units at Sim Lim Square in the past 12 months is $2,997 psf. In December 2024, a 592 sq ft shop on the ground floor was sold for $1.92 million ($3,241 psf), which is the most recent transaction at the development.Sim Lim Square has established itself as a popular tech hub, known for its wide range of electronics, gadgets, and computer parts (Photo: ERA)Lee also highlights that Sim Lim Square is well-known as a tech hub, thanks to its cluster of retailers offering electronics, gadgets, and computer parts. The development also houses various other businesses, including F&B outlets and traditional Chinese medicine shops.Both units up for auction are currently tenanted and generate a monthly rental income of $4.50 psf. According to EdgeProp Singapore’s rental data, retail units at Sim Lim Square can fetch between $4.20 psf and $7.30 psf per month.A collective sale was proposed by the owners of Sim Lim Square in April 2019, with a tender launched at a reserve price of $1.25 billion. The development was relaunched for sale in December 2019 at the same price but remained unsold. Lee shares that a new collective sale committee will be formed to explore the possibility of a future sale attempt.Sim Lim Square, completed in 1987, is a strata-titled commercial development situated on Rochor Canal Road in District 7. It sits on a 78,152 sq ft site with a 99-year leasehold from 1983. The complex comprises 492 retail and office units spread across six floors and two basement levels. It is within walking distance of Rochor and Jalan Besar MRT Stations on the Downtown Line, and the Bugis MRT Interchange connects the East-West and Downtown Lines.