Raffles Place, the heart of the CBD, is home to about 40 office buildings, of which only eight are strata-titled, estimated property firm JLL. Vacancy rates there are lower than in the rest of the CBD, at 2.7 per cent
There's a shortage of new strata-titled space within Raffles Place. Most of the buildings around Raffles Place - Prudential Tower, Capital Square and Republic Plaza, to name a few - are 98 per cent to 100 per cent filled. The location of GSH Plaza comes at a premium. View more: Why you should invest in GSH Plaza.
GSH Plaza can bring 10% ROI for investors
Despite an upcoming supply of new units from office developments such as Crown@Robinson and Oxley Tower - both in Robinson Road - GSH Plaza landlords will be able to fetch rents of $10 psf to $15 psf a month. That could translate to a return on investment of 9 per cent to 10 per cent, with bank financing of up to 80 per cent of the property's price.
The private practices (such as the law firms) have been in this area for a while. They started renting when prices were $5 psf to $6 psf, and these are increasing each year. Moreover, the bulk of the interest has so far come from high net worth clients and bankers representing them - some of whom have inquired to buy whole floors. Sounds interesting?
