Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil
Two different strata retail units on the second and fourth levels of the People’s Park Complex in District 1’s Chinatown is going to be put up for auction on Nov 16 by Knight Frank Singapore.
She adds that the current government announcement to build 6,000 non commercial homes on Pearl’s Hill in Chinatown is anticipated to enhance traffic in the location, bringing more business and greater financial investment yields to potential customers of the units.
The proprietor of the second-storey retail unit purchased the property for $1.45 million ($3,207 psf) in April in 2022, based on signs lodged. The proprietor of the fourth-storey unit purchased the property for $828,000 ($1,709 psf) in May last year and is the second owner of the retail store space.
People’s Park Complex is accessible using Chinatown MRT Terminal, situated directly next to the structure, and Outram Park MRT Terminal. Tricia Tan, supervisor of auction and transactions at Knight Frank Singapore, notes that it is a popular tourist location with high footfall.
Both of these units are currently occupier. The second-floor unit is lessee to a high-end retail, which has extended its lease term for 2 years from March next year, with a month-to-month leasing rate of $5,000. The fourth-floor unit is occupier to a health therapy establishment for $1,800 monthly up until July 2025.
Based on cautions lodged, the property development has found only three resell purchases so far this year. The past sale took place in June when a 291 sq ft retail unit switched controls for $1.3 million, or $4,473 psf. The two other sales remained in April and involved a 366 sq ft unit offered for $1.7 million ($4,645 psf) and a 452 sq ft unit for $2.08 million ($4,601 psf).
The development’s hire yield is considerably higher than its reseller neighbors’. Ninety-nine-year leasehold shopping mall Havelock2 on Havelock Roadway, located throughout a 500m span of People’s Park Centre, has a rental yield of 4.6%. An additional nearby mall, Chinatown Point on New Bridge Roadway, has a rental return of 3.4%. The higher rental yield at People’s Park Complex speaks to the high step that the property development enjoys, likely from homeowners in the area and vacationers.
Knight Frank’s Tan expects rate of interest to follow from investors– locals, foreigners and even corporate buyers. This is because clients are exempt to GST, ABSD or SSD.
URA sales information from the past twelve month reveals People’s Park Complex retail industry units generally selling for $947 psf usually. Unit rentals will certainly stretch between $2.40 psf monthly (pm) to $7.10 psf pm, or an average of $4.60 psf pm. This converts to a high leasing return of 5.8%.
The suggestive overview rate for the 452 sq ft unit on the 2nd floor is $1.8 million ($3,982 psf), whilst the overview cost for the fourth-level unit taking up 484 sq ft is $800,000 ($1,653 psf). This is the second time that each units have actually been put up for sale via Knight Frank Singapore’s auction sale.
According to the auctioneer at Knight Frank, the units are not subject to products and services tax (GST), additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). Additionally, the property has the potential for en bloc sale.
People’s Park Complex is a 99-year leasehold, with a remaining 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 consists of a six-storey retail and office podium and a 25-storey apartment block. It has actually been zoned for commercial utilization under the URA’s 2019 Masterplan and has a gross plot ratio of 5.6.