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SPECIAL ADVERTISING FEATURE: For those looking to invest in a commercial property, Parc Esta’s shop units, strategically located along Sims Avenue, ticks all the right boxes.
Words by Michelle Yee
Whether you’re an investor seeking out a good deal or a business owner looking to purchase a shop unit for your use, Parc Esta’s commercial space is a rare investment opportunity with immense potential. Whether it’s footfall, accessibility, frontage, location, or visibility, Parc Esta Shoppes ticks all the boxes. Business owners for one would be aware that securing a shop space on the ground floor doesn’t come by easy, as these units are highly coveted due to their high visibility and high footfall.
Prime Location With High Footfall
One of the main draws for investors looking to purchase one of the five shops at Parc Esta is its prime location – fronting the bustling Sims Avenue and directly opposite Eunos MRT Station and bus interchange. Furthermore, the shops will also enjoy high catchment from the 1,399 residents of Parc Esta. Keen buyers will be pleased to know that the shops are located directly at the receiving end of the pedestrian crossing from the train station – this means that commuters would be required to pass by these shops as they head towards the station.
Notably, Parc Esta is also within proximity to Paya Lebar Central, an up-and-coming cluster earmarked to be a commercial hub in URA’s 2008 Master Plan, and an activity generating node.
Great Visibility
Apart from its prominent location and high footfall, another allure of Parc Esta’s shops is its wide frontage, which offers great visibility. Each shop here boasts a 6.5-metre full glass shopfront, giving the entire cluster of five adjoining shops a total of 32 metres of main road frontage along Sims Avenue. Great visibility is critical in the acquisition of new customers, hence the wide frontage would prove beneficial for business owners to convert passers-by to customers over time.
Timely Investment
With the current low interest rate environment – most banks are willing to loan businesses up to 90% of the purchase price of shops at an interest rate of approximately 1.3% per annum, business owners may want to consider owning a shop space by paying mortgage instalments as opposed to paying rent. Based on the instalment repayment for a 30-year mortgage, the amount will work out to be about the same as paying rent at $9 psf. In addition to building a fully paid asset after the mortgage term, business owners will also be able to better manage the risk of rental escalation if they own their own retail space as opposed to renting.
Apart from leveraging on low interest rates, investors may want to consider parking their money in commercial properties as they offer several advantages over residential properties, such as fewer stamp duties – the Additional Buyer’s Stamp Duty is not payable for commercial properties, while the Seller’s Stamp Duty does not apply to non-industrial commercial properties such as shop units. Furthermore, investors can look to reap healthy rental yields of 3.6% to 4% per annum (based on rental rates of $9 to $10 psf) – which far exceeds returns that one would get from residential rental income or keeping their money in the bank.
TOP for Parc Esta is expected to be in the first half of 2022.
For more information, visit: http://www.mcl-parcesta.com.sg/shoppes.php, or contact Lim Yew Min at 84486601.