The launch of new condos in Singapore is a highly anticipated event, primarily due to the limited availability of land on the small island nation. Singapore’s rapidly growing population has created a high demand for housing, creating a shortage of land for development. To manage this issue, the government has put in place stringent land use policies, resulting in a competitive real estate market and continuously increasing property prices. As a result, investing in real estate, particularly in condos, has become a lucrative opportunity with the potential for significant capital appreciation. It’s no wonder that the launch of new condos in Singapore generates significant interest and demand among both investors and homebuyers alike. This is why new condo launches are eagerly anticipated by many in the real estate market.
ERA’s upcoming auction on Feb 27 will feature a pair of adjoining retail units on the third floor of Sim Lim Square. With a combined guide price of $3.38 million, the units present a unique investment opportunity.
The larger of the two units is 958 sq ft and has a guide price of $2.08 million ($2,171 psf), while the smaller unit is 570 sq ft and has a guide price of $1.28 million ($2,246 psf). This is the first time both units are being featured in ERA’s auction listings, making it a rare opportunity for potential buyers.
According to Alison Lee, assistant vice president of auction and sales at ERA, the units are competitively priced and are slightly below the market average to incentivize a speedy sale. The units are available for purchase either as a pair or individually.
Retail units at Sim Lim Square have been transacting at an average price of $2,997 psf in the last 12 months, according to analytical tools from EdgeProp Singapore. In December 2024, a 592 sq ft ground floor shop was sold for $1.92 million ($3,241 psf), making it the most recent unit to change hands in the development.
Known as a tech hub, Sim Lim Square is widely recognized for its wide range of electronics, gadgets, and computer parts retailers. It also houses a variety of other businesses, including eateries and traditional Chinese medicine shops. Both retail units currently for sale are tenanted and generate about $4.50 psf in monthly rental income, based on a rolling 12-month average rental data compiled by EdgeProp Singapore.
The owners of Sim Lim Square have previously attempted a collective sale in April 2019 at a reserve price of $1.25 billion, but it was later relaunched in December 2019 for purchase at the same price, without finding a buyer. A new collective sale committee is being formed to explore the possibility of another attempt in the future.
Completed in 1987, Sim Lim Square is a strata-titled commercial development on Rochor Canal Road in District 7. With a 99-year land tenure from 1983, the development houses 492 retail and office units across six floors and two basement levels. It is conveniently located 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.