ERA’s upcoming 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 two units, which are available for purchase together or separately, have a guide price of $2.08 million ($2,171 psf) for the larger unit and $1.28 million ($2,246 psf) for the smaller unit. This is the first time both units have been listed for auction by ERA.
According to Alison Lee, assistant vice president of auction and sales at ERA, the units are competitively priced and slightly below market average to attract a quick sale. Based on EdgeProp Singapore’s analytical tools, retail units at Sim Lim Square have transacted at an average price of $2,997 psf in the last 12 months. The most recent transaction was in December 2024, where a 592 sq ft ground floor unit was sold for $1.92 million ($3,241 psf).
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Sim Lim Square has established itself as a popular tech hub, known for its wide variety of electronics, gadgets, and computer parts. It also houses other businesses such as eateries and traditional Chinese medicine shops. The two retail units for sale are currently tenanted and generate a monthly rental income of approximately $4.50 psf. Based on EdgeProp Singapore’s data, retail units at Sim Lim Square generate rental yields between $4.20 and $7.30 psf per month.
The owners of Sim Lim Square attempted to put the development up for collective sale in 2019 with a reserve price of $1.25 billion, but it did not find a buyer. A second attempt led by a collective sale committee formed in 2022 also did not materialize. Lee reveals that a new committee is being formed to explore the possibility of another collective sale attempt in the near future.
Built in 1987, Sim Lim Square is a strata-titled commercial development in District 7 with a land tenure of 99 years from 1983. The complex comprises 492 retail and office units spread across six floors and two basement levels. It is conveniently located near Rochor and Jalan Besar MRT Stations on the Downtown Line and the Bugis MRT Interchange, which connects the East-West and Downtown Lines.