Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil
Knight Frank’s Tan anticipates rate of interest to come from investors– locals, foreigners and even corporate buyers. This is because clients are exempt to GST, ABSD or SSD.
People’s Park Complex is a 99-year leasehold, with a standing 44 years on its rent. The mixed-use property development is located at the link of Eu Tong Sen Roadway and Park Crescent. Accomplished in 1970, it comprises a six-storey retail and office space podium and a 25-storey apartment block. It has been zoned for commercial usage under the URA’s 2019 Masterplan and has a gross plot proportion of 5.6.
People’s Park Complex is accessible through Chinatown MRT Station, situated straight next to the structure, and Outram Park MRT Terminal. Tricia Tan, supervisor of auction and sales at Knight Frank Singapore, mentions that it is a well-known sightseer destination with high tramp.
The owner of the second-storey retail store unit acquired the building for $1.45 million ($3,207 psf) in April last year, placed on caveats lodged. The proprietor of the fourth-storey unit bought the real estate for $828,000 ($1,709 psf) in May last year and is the 2nd proprietor of the retail store space.
URA sales information from the last twelve month shows People’s Park Complex retail industry units normally selling for $947 psf on average. Unit rentals will vary in between $2.40 psf per month (pm) to $7.10 psf pm, or approximately $4.60 psf pm. This translates to a high service return of 5.8%.
According to the auctioneer at Knight Frank, the units are exempt to products and services tax (GST), additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). Additionally, the building has the capacity for en bloc sale.
Both units are currently lessee. The second-floor unit is leaseholder to a luxury retailer, which has actually renewed its rent term for 2 years from March next year, with a monthly rental price of $5,000. The fourth-floor unit is lessee to a health therapy service for $1,800 every month up until July 2025.
She includes that the current government statement to build 6,000 property homes on Pearl’s Hill in Chinatown is anticipated to boost traffic in the location, bringing more business and higher investment yields to potential buyers of the units.
Based upon caveats lodged, the project has observed only three reselling purchases thus far 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 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).
The property’s rental turnout is substantially greater than its reseller neighbors’. Ninety-nine-year leasehold shopping center Havelock2 on Havelock Road, situated inside a 500m span of People’s Park Facility, has a rental yield of 4.6%. An additional nearby mall, Chinatown Point on New Bridge Roadway, has a leasing return of 3.4%. The higher rental return at People’s Park Complex speaks with the high footfall that the property development appreciates, likely from residents in the area and visitors.
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 public auction on Nov 16 by Knight Frank Singapore.
The suggestive overview rate for the 452 sq ft unit on the second level is $1.8 million ($3,982 psf), while the overview cost for the fourth-level unit taking up 484 sq ft is $800,000 ($1,653 psf). This is the 2nd time that each units have been sold with Knight Frank Singapore’s auction sale.