Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil
Knight Frank’s Tan expects interest to follow from investors– locals, immigrants and even corporate purchasers. This is because buyers are not subjected to GST, ABSD or SSD.
She adds that the recent administration statement to develop 6,000 property homes on Pearl’s Hill in Chinatown is anticipated to boost traffic in the area, bringing even more business and greater investment yields to prospective purchasers of the units.
Based on cautions lodged, the property has seen just three reselling deals already this year. The last sale took place in June when a 291 sq ft retail unit shifted hands for $1.3 million, or $4,473 psf. Both other revenues 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).
People’s Park Complex is a 99-year leasehold, with a standing 44 years on its rent. The mixed-use property development rises at the junction of Eu Tong Sen Roadway and Park Crescent. Finished in 1970, it makes up a six-storey retail store and office platform and a 25-storey apartment block. It has been zoned for industrial utilization within the URA’s 2019 Masterplan and has a gross story proportion of 5.6.
URA profits information from the past one year shows People’s Park Complex retail industry units usually costing $947 psf typically. Unit rents will certainly range between $2.40 psf monthly (pm) to $7.10 psf pm, or an average of $4.60 psf pm. This equates to a strong service return of 5.8%.
The property development’s hire yield is dramatically more than its reseller neighbors’. Ninety-nine-year leasehold shopping center Havelock2 on Havelock Roadway, situated throughout a 500m distance of People’s Park Center, has a rental turnout of 4.6%. Another nearby mall, Chinatown Point on New Bridge Road, has a leasing return of 3.4%. The higher rental yield at People’s Park Complex speaks with the high step that the property development delights in, likely from homeowners in the community and visitors.
According to the auctioneer at Knight Frank, the units are not subject to goods and services tax obligation (GST), additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). In addition, the structure has the capacity for en masse sale.
People’s Park Complex is accessible through Chinatown MRT Terminal, situated directly beside 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 step.
The suggestive guide cost for the 452 sq ft unit on the 2nd floor is $1.8 million ($3,982 psf), while the guide cost for the fourth-level unit covering 484 sq ft is $800,000 ($1,653 psf). This is the second time that both units have been offered through Knight Frank Singapore’s auction.
Both units are presently lessee. The second-floor unit is lessee to a high-end retail, that has extended its rent term for 2 years from March next year, with a regular monthly leasing rate of $5,000. The fourth-floor unit is lessee to a wellness therapy business for $1,800 per month until July 2025.
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 raised for auction on Nov 16 by Knight Frank Singapore.
The owner of the second-storey retail store unit purchased the real estate for $1.45 million ($3,207 psf) in April last year, placed on warnings lodged. The owner of the fourth-storey unit bought the property for $828,000 ($1,709 psf) in May last year and is the 2nd owner of the retail area.