Hi Mr Koh,
Thanks for your query into commercial properties.
Some details to share about what you have brought up:
1. Good rental yield and capital appreciation are rarely used in the same sentence. In theory, it is the benchmark for property investment. However, in practical application, good locations, and good capital appreciation potential usually translate into low rental yield.
An example is investments into residential districts D9,10,11. They have excellent capital appreciation potential, however, rental yields are about 3% at best.
2. Busy areas that are easily rented out will cost a premium. Fire sales usually never apply to these properties. Due to the premium they command to acquire, the yield subsequently suffers. The business that benefits from the frontage would be where the profit would be.
Hence I hope this sheds some insights into your expectations as an investor.
On hand if you are keen I have a commercial office space, already tenanted for 2 years with a yield of 6% on purchase, full finishings instead of the usual bare unit.
It is a premium property, hence the yield trade off gives the prospect of enhanced capital appreciation.
Your Singapore Condo Specialist Team,
Mervin Tang
Senior Marketing Associates
Developer's Appointed Agency
Huttons Real Estate Group
Call Today:
(+65) 9184 0208
Website: http://www.sgcondospecialist.com
Sales Enquiry: enquiry@sgcondospecialist.com
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