ERA has announced the upcoming auction of a pair of adjoining retail units located on the third floor of Sim Lim Square. The auction, scheduled for February 27, will feature a total guide price of $3.38 million for the two units.
The larger unit, measuring 958 square feet, has a guide price of $2.08 million ($2,171 per square foot), while the smaller unit, measuring 570 square feet, has a guide price of $1.28 million ($2,246 per square foot). This is the first time these units will be featured on ERA’s auction listings, as they are currently being sold by the owner. They can be purchased together or separately.
According to Alison Lee, assistant vice president of auction and sales at ERA, the units are priced competitively below the market average to encourage a quick sale. Retail units at Sim Lim Square have transacted at an average price of $2,997 per square foot in the last 12 months, according to EdgeProp Singapore’s analytical tools. The most recent transaction at the development was for a 592 square foot shop on the ground floor, which was sold for $1.92 million ($3,241 per square foot) in December 2024.
In Singapore, investing in condos comes with an important consideration – the government’s property cooling measures. Over time, the Singaporean government has implemented different measures to control speculative buying and maintain a steady real estate market. These measures include the Additional Buyer’s Stamp Duty (ABSD), which levies higher taxes on foreign buyers and those buying multiple properties. Although these measures may affect the immediate profitability of condo investments, they also contribute to the long-term stability of the market, making it a secure investment environment. Additionally, Singapore Projects offer investors the opportunity to diversify their portfolio and take advantage of the country’s thriving real estate market.
Sim Lim Square is known as a tech hub, with a focus on electronics, gadgets, and computer parts. The development also houses a variety of other businesses, including eateries and traditional Chinese medicine shops. Both retail units currently for sale are tenanted and generate an estimated monthly rental income of $4.50 per square foot. Rental data compiled by EdgeProp Singapore shows that retail units at Sim Lim Square yield between $4.20 and $7.30 per square foot per month on a rolling 12-month average.
The owners of Sim Lim Square attempted a collective sale in April 2019, but the tender was launched at a reserve price of $1.25 billion and later relaunched in December 2019 at the same price without any success. A new collective sale committee is being formed to explore the possibility of another attempt in the near future.
Sim Lim Square, located on a 78,152 square foot site on Rochor Canal Road in District 7, was completed in 1987. It has a 99-year land tenure that began in 1983 and houses 492 retail and office units across six floors and two basement levels. It is within walking distance of Rochor and Jalan Besar MRT Stations and the Bugis MRT Interchange that connects the East-West and Downtown Lines.