How valuable is a retail unit in Queensway Shopping Centre?
A retail unit in Queensway Shopping Centre is up for sale at $7.5 million. Is it a good price for a commercial property in this area? Let’s find out!
The retail unit in question stretches upon 2,734 sq ft and costs approximately $2,743 psf. The unit has been occupied by the popular gym, Anytime Fitness for the last six years. The lease has been further extended for three more years till May 2024.
The gym occupies a portion of the unit while the rest of the space is further divided into seven small units. They are available for rental use. However, if you want to put it to commercial use, it can also be operated as an F&B business for cafes and restaurants.
This particular property is on the third floor of the mall. It is one of the two rare largest floorplate units in the entire mall that has 24 hours access.
What do we know about Queensway Shopping Centre?
Queensway Shopping Centre itself is a mixed use building with land use for both commercial and residential according to URA data. Built in 1974, this is the first multi purpose shopping complex in Singapore comprising 4 levels that houses 280 residents currently. The basement is built for a car park area for the shoppers and also includes a 13 storey apartment tower for residential purpose.
If you look at the retail business, the place has over 150 retail units each operating a distinct type of business. From sporting goods, apparel, spectacles, tailor service to printing service, the shopping mall houses various types of business. It also features an exhibition hall, coffee house and nightclub for shopper’s entertainment.
Back in the 80s and 90s, this mall was very popular among youngsters for sports merchandise. However, post the millennium, the crowd in this mall has lessened, the only consumers being the neighbourhood people.
The retail units themselves are owned by individual owners. The formerly popular sports and printing shop are now less in demand. Mostly because people now prefer to shop for such merchandise online. Besides, the individual ownership disrupts the uniformity among the shop owners and businesses. But if the place picks up a new trend or can uplift their tenancy profile, the stream of visitors can be greatly informed.
There is also a good en bloc potential of this shopping mall as it serves both commercial and residential use. The area is under plan for some serious developments. So, if the shop owners can uniformly agree to go for enbloc, it may very well suggest another good advantage to own a retail space here.
Is the retail unit at Queensway Shopping Centre worth it?
Now, rounding back to the question. Is it worth the $7.5 million investment on the retail unit? Do the various businesses make it a good rentable unit?
From URA, the following is the development charge in this mall:
|Group||Development Charge ($)|
Groups A-E: per m2 of gross floor area.
Groups F-H: per m2 of land area.
Online listings show that other shops in the mall cost an average $3,151 psf. That is $408 more than what this particular unit cost. Where the retail unit is up for sale at $7.5 million, other units of the same range would be around $9.6-$9.8 million.
Since the Queensway Mall is currently in the lower dynamic, you can grab it at a bargained price now. When the future development planned for the area picks up, it will be a viable investment. However, being a mixed use building, it is not eligible for foreigners to buy. So local Singaporeans with small but profitable business are most suitable to buy a retail unit here.
More at Retail unit at Queensway Shopping Centre for sale at $7.5 mil, EdgeProp.
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