Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil

The property’s hire yield is dramatically more than its reseller neighbours’. Ninety-nine-year leasehold shopping mall Havelock2 on Havelock Roadway, located within a 500m span of People’s Park Facility, has a rental return of 4.6%. An additional neighboring shopping center, Chinatown Point on New Bridge Roadway, has a rentals yield of 3.4%. The higher rental yield at People’s Park Complex speaks with the high step that the development appreciates, likely from residents in the neighbourhood and tourists.

The owner of the second-storey retail unit acquired the real estate for $1.45 million ($3,207 psf) in April in 2022, placed on caveats lodged. The proprietor of the fourth-storey unit purchased the building for $828,000 ($1,709 psf) in May in 2022 and is the second owner of the retail store space.

People’s Park Complex is a 99-year leasehold, with a standing 44 years on its lease. The mixed-use project is located at the crossroads of Eu Tong Sen Roadway and Park Crescent. Finished in 1970, it comprises a six-storey retail store and office podium and a 25-storey apartment block. It has been zoned for business utilization within the URA’s 2019 Masterplan and has a gross story ratio of 5.6.

URA profits data from the last 12 months shows People’s Park Complex retail industry units usually selling for $947 psf typically. Unit leasings will certainly stretch in between $2.40 psf per month (pm) to $7.10 psf pm, or approximately $4.60 psf pm. This translates to a significant leasing yield of 5.8%.

The indicative guide cost for the 452 sq ft unit on the second floor is $1.8 million ($3,982 psf), while the overview cost for the fourth-level unit covering 484 sq ft is $800,000 ($1,653 psf). This is the 2nd time that both units have been put up for sale with Knight Frank Singapore’s auction sale.

People’s Park Complex is accessible using Chinatown MRT Terminal, situated straight next to the structure, and Outram Park MRT Station. Tricia Tan, supervisor of auction and sales at Knight Frank Singapore, indicates that it is a well-known sightseer destination with high tramp.

Based upon cautions lodged, the project has found just 3 resale transactions already this year. The last sale occurred in June when a 291 sq ft retail unit switched hands for $1.3 million, or $4,473 psf. Both more sales remained in April and entailed 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).

According to the seller at Knight Frank, the units are exempt to items and services tax (GST), additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). In addition, the building has the potential for en masse sale.

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She includes that the recent state announcement to construct 6,000 residential homes on Pearl’s Hill in Chinatown is expected to boost jam in the area, bringing even more business and higher investment accept prospective customers of the units.

Knight Frank’s Tan assumes interest to come from investors– locals, foreigners and also corporate purchasers. This is because buyers are exempt to GST, ABSD or SSD.

Both units are at present tenanted. The second-floor unit is tenanted to a high-end retailer, which has extended its rent term for 2 years from March next year, with a month-to-month leasing price of $5,000. The fourth-floor unit is lessee to a wellness therapy service for $1,800 every month till July 2025.

Two different strata retail units on the 2nd and fourth levels of the People’s Park Complex in District 1’s Chinatown will be set up for public auction on Nov 16 by Knight Frank Singapore.

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