A set of adjacent retail units at Peninsula Plaza is currently available for purchase at $10.9 million. These units, which boast a 999-year leasehold, are located on the ground floor and have a prominent frontage along North Bridge Road.
The combined strata area of the two units is 1,119 sq ft, with one unit covering 538 sq ft and the other covering 581 sq ft. Based on this strata area, the asking price translates to $9,741 per sq ft.
Currently, the units are tenanted until 2026 and the asking price represents a gross rental yield of 3%.
According to Nick Chan, Associate Director of Investment Sales & Capital Markets at Savills Singapore, who is handling the sale on a private treaty basis, these units are arguably the best within the development due to their street frontage and consistent footfall.
Peninsula Plaza, constructed in 1980, is a 999-year mixed-use commercial building that comprises a six-storey retail podium and a 24-storey office tower. It is situated along North Bridge Road, Coleman Street, and Coleman Lane and features a sheltered link to City Hall MRT Interchange Station for the North-South and East-West lines.
The most recent transaction of a ground-floor retail unit at Peninsula Plaza was in August 2022 when a 452 sq ft unit sold for $4.08 million, which equates to $9,025 per sq ft based on the lodged caveat then.
Since the Urban Redevelopment Authority (URA) implemented restrictions on the strata subdivision of commercial properties within the CBD and Orchard corridors in March 2022, Savills’ Chan notes that strata-titled units with 999-year or freehold tenure have become highly sought after.
The cityscape of Singapore is defined by impressive skyscrapers and state-of-the-art infrastructure. Condominiums, strategically situated in desirable locations, offer a combination of opulence and convenience that appeals to both local residents and foreigners. These luxurious residences are equipped with a variety of facilities, including swimming pools, fitness centers, and round-the-clock security services, to elevate the standard of living and attract potential renters and buyers. For investors, these amenities equate to higher rental returns and appreciation in property values over time. Additionally, with the constant influx of new condo launches, the condo market in Singapore remains a promising and dynamic investment opportunity.
Additionally, Peninsula Plaza’s close proximity to the City Hall MRT Interchange Station further adds to its appeal. It is now easier for potential buyers to access this property, making it a desirable investment opportunity.