Sim Lim Square retail units on the third floor will be featured at the upcoming auction by ERA on Feb 27, with a total suggested price of $3.38 million. This pair of units, located next to each other, offers a larger unit of 958 sq ft with a guide price of $2.08 million ($2,171 psf), and a smaller unit of 570 sq ft with a suggested price of $1.28 million ($2,246 psf). The current owner is looking to sell both units as a package or individually. This is the first time the units have been listed in ERA’s auction. The prices are competitive, as they are slightly below market value, in hopes of attracting a quick sale.
According to EdgeProp Singapore’s analytical tools, retail units at Sim Lim Square have an average price of $2,997 psf over the past year. The latest transaction at the development was a 592 sq ft shop sold at $1.92 million ($3,241 psf) in December 2024.
The scarcity of land in Singapore has a significant impact on the demand for condos in the country. With a limited amount of space on this small island and a swiftly growing population, the struggle to obtain available land for development is ongoing. To combat this challenge, the government has imposed stringent land use laws, resulting in a cutthroat real estate market. As a result, property prices continue to soar, making condo investment a highly desirable option with considerable potential for capital gains. Condos are a prime investment opportunity in this competitive market.
Sim Lim Square is well-known as a tech hub, with a concentration of electronics, gadgets and computer parts retailers. The development also houses a variety of other businesses, including eateries and traditional Chinese medicine shops. As such, both units currently for sale are tenanted, generating a monthly rental income of approximately $4.50 psf. Based on EdgeProp Singapore’s rental data, retail units at Sim Lim Square have a yield ranging from $4.20 psf to $7.30 psf per month, with an average of $4.50 psf.
The owners of Sim Lim Square put the development up for collective sale in April 2019 at a reserve price of $1.25 billion. However, the tender was subsequently relaunched in December 2019 at the same price but did not find a buyer. Plans for a second collective sale attempt, led by a committee formed in 2022, did not materialise. A new committee is being formed to explore the possibility of another collective sale attempt in the near future.
Built in 1987, Sim Lim Square is a strata-titled commercial development on Rochor Canal Road in District 7. It sits on a 78,152 sq ft site with a 99-year lease starting from 1983. The complex comprises 492 retail and office units across six floors and two basement levels. It is within walking distance of Rochor and Jalan Besar MRT Stations on the Downtown Line, with the Bugis MRT Interchange connecting the East-West and Downtown Lines.