Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil
The owner of the second-storey retail store unit purchased the building for $1.45 million ($3,207 psf) in April in 2022, placed on caveats lodged. The proprietor of the fourth-storey unit got the property for $828,000 ($1,709 psf) in May last year and is the 2nd owner of the retail store area.
Two separate strata retail units on the second and 4th levels of the People’s Park Complex in District 1’s Chinatown will be put up for public auction on Nov 16 by Knight Frank Singapore.
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 crossroads of Eu Tong Sen Road and Park Crescent. Finished in 1970, it comprises a six-storey retail and workplace platform and a 25-storey apartment block. It has been zoned for commercial benefit within the URA’s 2019 Masterplan and has a gross plot ratio of 5.6.
URA sales records from the past twelve month shows People’s Park Complex retail units generally yielding $947 psf usually. Unit rentals will certainly vary between $2.40 psf monthly (pm) to $7.10 psf pm, or approximately $4.60 psf pm. This translates to a strong rental yield of 5.8%.
People’s Park Complex comes using Chinatown MRT Terminal, located straight beside the structure, and Outram Park MRT Station. Tricia Tan, supervisor of public auction and transactions at Knight Frank Singapore, notes that it is a popular sightseer spot with high footfall.
She includes that the current administration news to construct 6,000 non commercial homes on Pearl’s Hill in Chinatown is expected to increase jam in the area, bringing even more business and greater financial investment yields to prospective purchasers of the units.
According to the seller at Knight Frank, the units are exempt to products and services tax obligation (GST), additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). Furthermore, the property has the capacity for en masse sale.
Knight Frank’s Tan anticipates rate of interest to follow from investors– locals, foreigners and even corporate customers. This is because buyers are not subjected to GST, ABSD or SSD.
Based upon caveats lodged, the project has actually found only 3 reselling transactions already this year. The past sale took place in June when a 291 sq ft retail unit shifted controls for $1.3 million, or $4,473 psf. The two other sales remained in April and involved a 366 sq ft unit reselled for $1.7 million ($4,645 psf) and a 452 sq ft unit for $2.08 million ($4,601 psf).
Both of these units are at present lessee. The second-floor unit is leaseholder to a high-end retailer, that has actually renewed its rent term for two years from March next year, with a month-to-month leasing rate of $5,000. The fourth-floor unit is tenanted to a wellness treatment establishment for $1,800 per month till July 2025.
The suggestive overview rate for the 452 sq ft unit on the 2nd 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 both units have actually been sold through Knight Frank Singapore’s auction sale.
The property’s leasing turnout is considerably higher than its retail neighbours’. Ninety-nine-year leasehold mall Havelock2 on Havelock Roadway, located throughout a 500m radius of People’s Park Center, has a rental turnout of 4.6%. Another neighboring shopping mall, Chinatown Point on New Bridge Road, has a rentals return of 3.4%. The greater rental return at People’s Park Complex speaks with the high footfall that the property development enjoys, likely from locals in the neighbourhood and vacationers.