Feb 27 auction: Sim Lim Square units for buyer seeking a rental yield potential
ERA’s next auction on February 27 will feature a pair of adjacent retail units on the third floor of Sim Lim Square with a total guide price of $3.38 million. The larger of the two units is 958 sq ft and is priced at $2.08 million ($2,171 psf), while the smaller unit is 570 sq ft and priced at $1.28 million ($2,246 psf). This is the first time both units have appeared on ERA’s auction listings as they are being sold by the owner.
These units can be purchased together or individually, and according to Alison Lee, assistant vice president of auction and sales at ERA, they are competitively priced. “They are priced slightly below the market average to incentivize a speedy sale,” she says.
Based on EdgeProp Singapore’s analytical tools, retail units at Sim Lim Square have averaged $2,997 psf in the last 12 months. The most recent unit to be sold at the development was a 592 sq ft shop on the ground floor that fetched $1.92 million ($3,241 psf) in December 2024.
Sim Lim Square is known as a tech hub and has a wide variety of electronics, gadgets, and computer parts on display (Photo: ERA)
Lee also points out that Sim Lim Square is known as a prominent tech hub, with a variety of electronics, gadgets, and computer parts retailers. The complex also includes various other businesses, such as eateries and traditional Chinese medicine stores.
Both retail units for sale are currently tenanted and bring in an average monthly rental income of $4.50 psf. According to rental data compiled by EdgeProp Singapore, retail units at Sim Lim Square generate between $4.20 psf and $7.30 psf per month, based on the previous 12 months average.
The owners of Sim Lim Square put the development on the market for collective sale in April 2019, with a reserve price of $1.25 billion. It was then relaunched for sale again in December 2019 at the same price but failed to find a buyer.
Plans for a second collective sale attempt, led by a committee formed in 2022, fell through. As a result, Lee states that a new committee is being formed to explore the possibility of another collective sale attempt in the near future.
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Sim Lim Square was completed in 1987 and is a strata-titled commercial development in District 7 on Rochor Canal Road. It covers 78,152 sq ft of land with a 99-year lease that started in 1983. The six-story complex houses 492 retail and office units, with two basement levels. Rochor and Jalan Besar MRT Stations on the Downtown Line are within walking distance, and the Bugis MRT Interchange connects the East-West and Downtown Lines at the airport.