Two adjoining strata retail units at Peninsula Plaza are currently on the market for $10.9 million. These units, which are located on the ground floor and have prominent frontage along North Bridge Road, are being sold on a 999-year leasehold.
Each unit has a strata area of 538 sq ft and 581 sq ft respectively, making the total strata area 1,119 sq ft. This translates to a asking price of $9,741 per square foot.
Currently tenanted until 2026, these properties offer a 3% gross rental yield for potential investors. According to Nick Chan, Associate Director of Investment Sales & Capital Markets at Savills Singapore, who is handling the sale of the units, these two units are arguably the best within the development due to their high footfall.
Peninsula Plaza is a 999-year, 30-storey mixed-use commercial building with a six-storey retail podium and a 24-storey office tower built in 1980. It boasts prominent frontages along North Bridge Road, Coleman Street, and Coleman Lane. In addition, it also has a sheltered link to the City Hall MRT Interchange Station for the North-South and East-West lines.
The last transaction for a ground-floor retail unit at Peninsula Plaza was in August 2022, when a 452 sq ft unit was sold for $4.08 million, which translates to $9,025 per square foot. As strata subdivision of the commercial component of new properties in the CBD and Orchard corridors was restricted by URA in March 2022, Chan notes that strata-titled units, especially those with 999-year and freehold tenure, have become more sought-after.
Investing in a Singapore condo requires careful consideration of financing options. As such, it is crucial for potential investors to understand the Total Debt Servicing Ratio (TDSR) framework in Singapore. This framework sets a maximum limit on the amount of loan an individual can take based on their income and existing debt obligations. To make informed decisions about financing, it is recommended to seek guidance from financial advisors or mortgage brokers who can help navigate the TDSR and avoid over-leveraging. With a range of mortgage options available in Singapore, being aware of the TDSR is essential for successful condo investment.
If you’re interested in owning a property at Peninsula Plaza, check out the latest listings for available units on EdgeProp Landlens.