Commercial unit at Balestier Point on sale for $10 mil

A freehold retail unit at Balestier Point is set for sale through auction. Located at the 18-storey Balestier Point mixed-use development in District 12, the 4,898 sq ft unit will be put up for sale for $10 million. This translates to a price of $2,042 psf.The owner, who acquired the property for $4.9 million ($1,000 psf) in April 2013, is now offering it up for the first time via auction at SRI on Nov 23.

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Caveats lodged in the district over the last 12 months indicate that the rental yields in Balestier Point are between $2.20 and $4.90 psf per month (pm), which is higher than the yields of nearby commercial units. Balestier Plaza offers a yield of 3.2%, while Square 2 yields 1.9%. According to EdgeProp Singapore’s LandLens tool, Balestier Point offers close proximity to the Novena MRT Station, Farrer Park MRT Station, and Boon Keng MRT Station. In addition, F&B outlets at Whampoa Makan Place on Whampoa Drive, as well as Balestier Market Food Court and Pek Kio Market and Food Centre on Cambridge Road are easily accessible.

The unit is likely to draw a high footfall due to the proximity to a residential enclave filled with private housing and several local eateries, cafes and restaurants. Last year saw two sales at Balestier Point – the first being a 183 sq ft unit for $408,000 ($2,230 psf) in November, and the second being a 5,608 sq ft unit for $10.08 million ($1,926 psf) in September.

As the unit readies to go to auction, current owner has the rare opportunity to exit the property at a desirable price. The $10 million price tag indicates that potential buyers will be getting the coveted freehold unit at a good price.

Given its advantageous location and high rental yields, the unit is likely to draw interest from investors. With the auction just weeks away, those interested would do well to pay attention and make their move.