Singapore’s property market is a popular choice for investors, with condo investments being particularly attractive. However, before jumping into the condo investment bandwagon, one must take into account the country’s property cooling measures implemented by the government. In an effort to discourage speculative buying and maintain a steady real estate market, the Singaporean government has introduced various measures over the years. These include the Additional Buyer’s Stamp Duty (ABSD) which imposes higher taxes on foreign buyers and individuals purchasing multiple properties. While these measures may affect the short-term profitability of condo investments, they also contribute to the long-term stability of the market, making it a safer and more secure investment environment. It is important for potential investors to consider not only the current market conditions, but also the country’s regulations in order to make informed decisions. New condo launches should also be taken into consideration as they may be affected by these measures and provide insight into the current state of the market.
A portfolio of freehold strata retail units in Lucky Plaza is being marketed for sale by Savills Singapore for a total of $52.6 million. Lucky Plaza, a mixed-use development situated along Orchard Road, consists of a residential tower and a six-story mall with a basement.
The collection of retail units encompasses 14 spaces located within the basement and the first two levels of the mall. The units range in size from 118 to 3,046 square feet, totaling 7,266 square feet of strata area.
According to Savills Singapore, the most notable feature of the portfolio is a food court spanning seven adjoining strata units, totaling 3,046 square feet and accommodating 11 stalls. The remaining retail units are currently occupied by a mix of businesses, including a pub, retail shops, beauty service providers, and a maid agency.
Savills Singapore’s Director of Investment Sales and Capital Markets, Sophia Lim, expects the retail units to benefit from high foot traffic due to their prime location in Lucky Plaza. She also notes that the basement food court in particular enjoys consistently strong crowds on a daily basis.
The guide price for the food court is $25.43 million, while the entire portfolio is available for purchase at an asking price of $52.6 million. Individual strata retail units can be purchased from $1.1 million onwards. Both foreigners and companies are eligible to purchase, and no additional buyer’s or seller’s stamp duty will be imposed.
Lim believes that prime strata freehold retail assets are increasingly sought-after by investors due to their scarcity, and the Urban Redevelopment Authority’s (URA) prohibition on further subdivision of commercial properties in Orchard Road. She also expects the planned revitalization of the Orchard precinct by URA to provide further upside for Lucky Plaza in terms of rental growth and capital appreciation.