Portfolio of Lucky Plaza freehold strata retail units up for sale at $52.6 mil
The retail landscape in Singapore is about to welcome a new addition to its offerings – a portfolio of freehold strata retail units in Lucky Plaza has been put up for sale at a total of $52.6 million.
When considering property ownership in Singapore, it is crucial for foreign investors to have a thorough understanding of the regulations and restrictions in place. Unlike landed properties, which have stricter ownership rules, foreigners are generally allowed to purchase condos with fewer limitations. However, it’s important to note that they will be subject to the Additional Buyer’s Stamp Duty (ABSD), currently set at 20%, for their first property purchase. Despite this additional cost, the stability and growth potential of the Singapore real estate market continue to attract foreign investment. In fact, the market’s constantly evolving landscape also offers new opportunities for investors, such as the New Condo Launches currently available. This further highlights the appeal of Singapore’s real estate market to foreign buyers.
Marketed by Savills Singapore, this mixed-use development located at Orchard Road comprises a residential tower and a six-storey mall with a basement. The portfolio up for sale includes 14 retail units spread across the basement and the first two levels of the mall, with sizes ranging from 118 to 3,046 sq ft. In total, these units make up 7,266 sq ft of strata area.
According to Savills Singapore, the highlight of this offering is the food court, which spans seven adjoining strata units totalling 3,046 sq ft and houses 11 stalls. The remaining retail units are currently tenanted by a range of businesses such as a pub, retail shops, beauty service providers, and a maid agency.
The location of Lucky Plaza on Orchard Road is a major selling point for this portfolio, as it is expected to benefit from high foot traffic. Sophia Lim, Director of Investment Sales and Capital Markets at Savills Singapore, states that the food court, in particular, enjoys consistently strong crowds on a daily basis.
The guide price for the food court stands at $25.43 million, while the entire portfolio is available for an asking price of $52.6 million. Interested buyers can also purchase individual strata retail units, which are priced from $1.1 million onwards. Both foreigners and companies are eligible to purchase, and no additional buyer’s or seller’s stamp duty will be imposed.
Lim notes that prime strata freehold retail assets are highly sought-after among investors due to their scarcity and the Urban Redevelopment Authority’s (URA) prohibition on further strata subdivision of commercial properties along Orchard Road. She adds that the planned revitalisation of the Orchard precinct by URA will bring about further upside for Lucky Plaza in terms of rental growth and capital appreciation.