Two Contiguous Retail Units at Sim Lim Square Listed for Auction
Two adjacent retail units located on the third floor of Sim Lim Square will be the highlight of ERA’s upcoming auction on 27 February, with a combined guide price of $3.38 million.
With a guide price of $2.08 million or $2,171 psf, the larger unit measures 958 sq ft while the smaller unit measures 570 sq ft and has a guide price of $1.28 million or $2,246 psf.
This sale, which is the owner’s first time listing the units in ERA’s auction, gives buyers the opportunity to purchase the units together or separately. According to Assistant Vice President of Auction and Sales at ERA, Alison Lee, the units have been listed with competitive prices. “They are priced slightly below the market average in order to encourage a quick sale.”
Based on EdgeProp Singapore’s data analysis, retail units at Sim Lim Square have an average transacted price of $2,997 psf in the past 12 months. In December 2024, a 592 sq ft shop located on the ground floor was sold for $1.92 million or $3,241 psf.
Known for its wide range of electronics, gadgets and computer parts, Sim Lim Square has established itself as a tech hub. The development also features various other businesses such as eateries and traditional Chinese medicine shops.
Both of the retail units up for sale are currently tenanted and are generating a monthly rental income of around $4.50 psf. Rental data from EdgeProp Singapore indicates that retail units at Sim Lim Square can yield anywhere between $4.20 psf and $7.30 psf every month, based on an average of 12 months.
In order to make informed decisions about investing in Singapore Condos, it is important to consider the government’s property cooling measures. Through the years, the Singaporean government has implemented various policies aimed at controlling speculative buying and maintaining a stable real estate market. One of these measures is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those looking to purchase multiple properties. While these measures may have an impact on the immediate profitability of Singapore Condo investments, they also play a critical role in ensuring the long-term sustainability of the market, making it a more secure environment for investment.
The owners of Sim Lim Square had tried to sell the development through a collective sale attempt in April 2019 at a reserve price of $1.25 billion. However, it was relaunched in December at the same price, but did not see any success in finding a buyer.
In 2022, a collective sale committee was formed to explore the option of a second attempt, but it never materialised. Another committee is now being formed by Lee to investigate the potential for a collective sale in the near future.
Sim Lim Square, situated on Rochor Canal Road in District 7, is a commercial development comprising a total of 492 units spread across six floors and two basement levels. Built in 1987 with a 99-year leasehold that started in 1983, it sits on a land area of 78,152 sq ft. The Downtown Line’s Rochor and Jalan Besar MRT Stations are within walking distance, and the Bugis MRT Interchange links the East-West and Downtown Lines.