Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil
People’s Park Complex is accessible using Chinatown MRT Station, situated directly beside the development, and Outram Park MRT Terminal. Tricia Tan, director of auction and sales at Knight Frank Singapore, indicates that it is a well-known travellers destination with high tramp.
Two separate strata retail units on the second and 4th floors of the People’s Park Complex in District 1’s Chinatown will be raised for auction on Nov 16 by Knight Frank Singapore.
She includes that the current administration news to build 6,000 property homes on Pearl’s Hill in Chinatown is anticipated to raise jam in the area, bringing more business and greater financial investment yields to potential customers of the units.
The proprietor of the second-storey retail unit acquired the building for $1.45 million ($3,207 psf) in April last year, based on signs lodged. The owner of the fourth-storey unit acquired the real estate for $828,000 ($1,709 psf) in May in 2022 and is the second proprietor of the retail spot.
URA sales information from the previous 12 months reveals People’s Park Complex retail industry units generally yielding $947 psf on average. Unit rents will vary in between $2.40 psf per month (pm) to $7.10 psf pm, or an average of $4.60 psf pm. This converts to a strong service return of 5.8%.
The two units are presently tenanted. The second-floor unit is tenanted to a deluxe retailer, that has extended its lease term for 2 years from March next year, with a monthly service rate of $5,000. The fourth-floor unit is lessee to a health treatment business for $1,800 monthly till July 2025.
Based upon cautions lodged, the development has observed only three resale transactions so far this year. The very last sale took place in June when a 291 sq ft retail unit changed controls for $1.3 million, or $4,473 psf. The two more sales were in April and involved a 366 sq ft unit marketed for $1.7 million ($4,645 psf) and a 452 sq ft unit for $2.08 million ($4,601 psf).
People’s Park Complex is a 99-year leasehold, with a remaining 44 years on its lease. The mixed-use property development is located at the junction of Eu Tong Sen Road and Park Crescent. Finished in 1970, it makes up a six-storey retail industry and office podium and a 25-storey apartment block. It has actually been zoned for industrial benefit under the URA’s 2019 Masterplan and has a gross plot proportion of 5.6.
The property’s hire turnout is substantially more than its reseller neighbours’. Ninety-nine-year leasehold mall Havelock2 on Havelock Road, situated within a 500m radius of People’s Park Center, has a rental yield of 4.6%. One more nearby shopping mall, Chinatown Point on New Bridge Road, has a rentals yield of 3.4%. The higher rental return at People’s Park Complex speaks with the high footfall that the property development delights in, likely from locals in the neighbourhood and tourists.
According to the seller at Knight Frank, the units are exempt to goods and services tax (GST), additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). Moreover, the building has the possibility for en bloc sale.
The suggestive overview price for the 452 sq ft unit on the second floor is $1.8 million ($3,982 psf), whilst the guide price for the fourth-level unit occupying 484 sq ft is $800,000 ($1,653 psf). This is the second time that each units have actually been offered via Knight Frank Singapore’s auction.
Knight Frank’s Tan expects rate of interest to come from investors– locals, foreigners and even corporate buyers. This is because investors are exempt to GST, ABSD or SSD.