A pair of adjoining retail units at Peninsula Plaza has been put on the market for $10.9 million. These 999-year leasehold units are located on the ground floor, with a prominent frontage along North Bridge Road. The total strata area for both units is 1,119 sq ft, with one unit measuring 538 sq ft and the other 581 sq ft. This translates to a price of $9,741 psf based on the strata area.
Currently tenanted until 2026, the two units offer investors a gross rental yield of 3% at the guide price of $10.9 million. According to Nick Chan, Savills Singapore’s associate director of investment sales & capital markets, who is handling the sale of these units on a private treaty basis, they are “arguably the best” in the development due to their strong footfall every day.
Peninsula Plaza is a 30-storey mixed-use commercial building with a six-storey retail podium and a 24-storey office tower. It was built in 1980 and has a 999-year tenure. The building boasts notable frontages along North Bridge Road, Coleman Street, and Coleman Lane, as well as a sheltered link to City Hall MRT Interchange Station for the North-South and East-West lines.
In August 2022, a 452 sq ft ground-floor retail unit at the development was sold for $4.08 million ($9,025 psf) based on a lodged caveat. This was the last transaction of a ground-floor unit.
Since the Urban Redevelopment Authority (URA) imposed restrictions on the strata subdivision of new commercial properties in the CBD and Orchard corridors in March 2022, Chan notes that there has been an increased interest in strata-titled units, particularly those with 999-year and freehold tenure. Peninsula Plaza, with its sheltered walkway to City Hall MRT station, is well-positioned to benefit from this trend.
Obtaining financing is a crucial factor when investing in a condo. In Singapore, there are various mortgage choices available. However, it is crucial to keep in mind the Total Debt Servicing Ratio (TDSR) framework, which regulates the amount of loan a borrower can acquire depending on their income and current debt commitments. Being familiar with the TDSR and seeking guidance from financial advisors or mortgage brokers can assist investors in making educated choices regarding their financing alternatives and prevent excessive leveraging. With the help of experts and resources like Condo, investors can secure suitable financing for their condo investment journey.
Interested parties can check out other listings for Peninsula Plaza properties on the market, including six commercial units launching for sale from $8.6 million, a portfolio of four retail units for $50.8 million, and individual retail units for $26.2 million.