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 unit purchased the building for $1.45 million ($3,207 psf) in April in 2022, based on warnings lodged. The owner of the fourth-storey unit bought the property for $828,000 ($1,709 psf) in May in 2022 and is the 2nd proprietor of the retail spot.
She includes that the current state statement 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 higher financial investment yields to potential buyers of the units.
The indicative guide price for the 452 sq ft unit on the second level is $1.8 million ($3,982 psf), whilst the guide rate for the fourth-level unit occupying 484 sq ft is $800,000 ($1,653 psf). This is the second time that both units have been sold with Knight Frank Singapore’s auction.
The property development’s leasing yield is significantly more than its retail neighbours’. Ninety-nine-year leasehold shopping mall Havelock2 on Havelock Road, situated throughout a 500m span of People’s Park Facility, has a rental yield of 4.6%. An additional close-by mall, Chinatown Point on New Bridge Road, has a leasing return of 3.4%. The greater rental yield at People’s Park Complex speaks with the high step that the property development enjoys, likely from homeowners in the neighbourhood and visitors.
Based upon cautions lodged, the property development has observed just three resale transactions already this year. The last sale occurred in June when a 291 sq ft retail unit shifted controls for $1.3 million, or $4,473 psf. Both more revenues were 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 not subject to products and services tax obligation (GST), additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). Furthermore, the building has the capacity for en bloc sale.
Two separate strata retail units on the second and fourth floors 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.
Both of these units are presently tenanted. The second-floor unit is tenanted to a deluxe retail store, that has renewed its contract term for 2 years from March next year, with a regular monthly service price of $5,000. The fourth-floor unit is lessee to a health treatment establishment for $1,800 monthly till July 2025.
Knight Frank’s Tan assumes interest to come from investors– locals, foreigners and even corporate customers. This is because investors are exempt to GST, ABSD or SSD.
URA profits information from the past year shows People’s Park Complex retail units commonly costing $947 psf usually. Unit rents will vary between $2.40 psf per month (pm) to $7.10 psf pm, or an average of $4.60 psf pm. This translates to a significant leasing yield of 5.8%.
People’s Park Complex is accessible using Chinatown MRT Terminal, located directly alongside the development, and Outram Park MRT Terminal. Tricia Tan, director of public auction and transactions at Knight Frank Singapore, mentions that it is a well-known tourist location with high tramp.
People’s Park Complex is a 99-year leasehold, with a standing 44 years on its rent. The mixed-use project stands at the junction of Eu Tong Sen Roadway and Park Crescent. Accomplished in 1970, it makes up a six-storey retail store and office space podium and a 25-storey apartment block. It has actually been zoned for commercial utilization within the URA’s 2019 Masterplan and has a gross plot proportion of 5.6.