Two adjoining strata retail units at Peninsula Plaza are currently up for sale with a list price of $10.9 million. These units are situated on the ground floor and boast prime frontage along North Bridge Road. The first unit has a strata area of 538 sq ft, while the second unit has a strata area of 581 sq ft, bringing the total to 1,119 sq ft. Based on the strata area, the asking price works out to be $9,741 per square foot.
It is crucial for international investors to have a thorough understanding of the regulations and limitations surrounding property ownership in Singapore. When it comes to purchasing property, foreigners are typically not faced with significant restrictions when buying condos, unlike landed properties that have stricter ownership guidelines. It should be noted, however, that foreign buyers are required to pay an Additional Buyer’s Stamp Duty (ABSD) of 20% on their initial property purchase. Nonetheless, despite this added expense, the steady and promising growth of the Singapore real estate market remains a draw for foreign investment. As such, condos continue to be a popular choice for foreign investors in Singapore.
Currently, both units are tenanted until 2026, offering investors a gross rental yield of 3% at the guide price of $10.9 million. “These two units are arguably the most desirable in the entire development due to their prime location and consistent foot traffic every day,” says Nick Chan, associate director of investment sales & capital markets at Savills Singapore, who is handling the sale on a private treaty basis.
Built in 1980, Peninsula Plaza is a mixed-use commercial development with a 999-year leasehold. It comprises a six-storey retail podium and a 24-storey office tower. The building is strategically located with frontages along three major roads – North Bridge Road, Coleman Street, and Coleman Lane. It also has a sheltered link to City Hall MRT Interchange Station, providing convenient access to both the North-South and East-West MRT lines.
According to Chan, since March 2022 when the URA implemented restrictions on the strata subdivision of new commercial properties in the CBD and Orchard corridors, strata-titled units with 999-year and freehold tenure have become highly sought-after. This has contributed to the strong interest in the sale of these two units at Peninsula Plaza.
The most recent transaction for a ground-floor retail unit at Peninsula Plaza was in August 2022, when a 452 sq ft unit sold for $4.08 million ($9,025 psf), based on a caveat lodged then. With its prime location and high foot traffic, Peninsula Plaza presents a unique investment opportunity for potential buyers. Don’t miss your chance to own a piece of this prestigious development.