3 Answers

Hi David, for investment in commercial properties, investors usually looking into the rental yield. Based on transacted prices in the area, rental of $4500 would yield back about 6% which is quite healthy for an investment. For comparative market analysis, the neighbourhood shops are commanding about $2500-$3000 for similar sizes. As a new project, commanding $4500 and above should not be an issue. However if in the long run, if the project is unable to draw the crowds to support the shops, rental may fall into the range of $1500. Rgds Philip Chong, Associate Team Director, SAEA Mortgage Planner, Propnex Realty Pte Ltd Read More
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Dear landlord,

When you have decided to purchase the unit, have you not work out the prospective rent you need to achieve to meet your investment objectives as well as work out a figure which allows you to break even to position yourself better? To be honest, there is a good number of upcoming supply for such projects in the market which is going to mature for rental across the island pretty soon. There are also quite a number of empty shop front in the market. It is encourage that you understand how much do you need monthly to at least break even before determining a probable rental you can look at.

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