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SPECIAL ADVERTISING FEATURE: A cluster of five adjoining shops at Parc Esta along Sims Avenue offers business owners an attractive opportunity to own a retail space.
Words Michelle Yee
As a business owner, nothing beats having your own retail space as the benefits of owning outweighs renting. For instance, with an owned property, you will not only be able to mitigate the risk of variable rent, but the property becomes an asset instead of a pure overhead. Furthermore, in today’s low interest rate environment, paying for mortgage instalments may prove to be a more prudent alternative to paying for rent. For business owners and investors looking for a retail space that offers great lucrative potential – both on the investment and business front – look no further than Parc Esta, a 1,399-unit residential development located along Sims Avenue and right opposite Eunos MRT station.
To Buy Or To Rent?
If you’re considering between buying and renting a retail space for your business, you will be pleased to know that most banks in Singapore are currently willing to loan businesses up to 90% of the purchase price at a low interest rate of approximately 1.3% per annum, allowing business owners to purchase a shop unit without using up all your cash resources.
Additionally, the monthly mortgage repayment works out to be about the same as paying rent at $9 psf – this is based on the instalment repayment for a 30-year mortgage. More importantly, business owners will be able to better manage the risk of rental escalation if they own the shop unit.
A Sound Investment
Another attractive reason for buying as opposed to renting is the fact that buyers can look to reap healthy rental yields. On average, a rent rate of $9 to $10 per sqft would yield a return on investment of 3.6% to 4% per annum, exceeding typical borrowing costs and is far superior to returns from owning apartments or keeping the money in the bank. Buyers of commercial properties also do not need to pay Additional Buyer’s Stamp Duty (ABSD).
Great Location with Great Visibility
When it comes to looking for a retail space, several factors come into consideration including location, accessibility, footfall and visibility, hence keen buyers and investors will be pleased to know that Parc Esta’s shops check all the boxes. Thanks to its strategic location – the shops are situated at the receiving end of the pedestrian light crossing from Eunos MRT station and bus interchange, hence commuters will inevitably walk past these shops as they head towards the station. Furthermore, business owners will be able to enjoy the benefits of Parc Esta’s close proximity to Paya Lebar Central – a bustling commercial hub that is home to close to a million sq ft of Grade-A office space.
Apart from its excellent location, Parc Esta’s shops also offer great visibility as they each boast a wide frontage of 6.5 metres along the main road of Sims Avenue. For retailers who are considering taking a bigger shop space to accommodate all their offerings, they can even consider taking two or more units and merging them into one – the shops here have been designed as adjacent modules to provide flexibility for integration.
Lastly, for those planning to run a 24-hour convenience store or laundromat, they will be pleased to know that they will be allowed to run a 24-hour operation for the first year when the development is under the developer’s management.
TOP for Parc Esta is expected to be in the first half of 2022. The closing date for expression of interest is on 28 April 2021, 2.30 pm.
For more information, visit http://www.mcl-parcesta.com.sg/shoppes.php or contact Lim Yew Min at 84486601
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