Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil
People’s Park Complex comes using Chinatown MRT Terminal, located directly beside the development, and Outram Park MRT Terminal. Tricia Tan, supervisor of public auction and sales at Knight Frank Singapore, indicates that it is a well-known tourist location with high tramp.
She adds that the recent state statement to develop 6,000 property homes on Pearl’s Hill in Chinatown is anticipated to increase jam in the location, bringing even more business and greater financial investment accept possible purchasers of the units.
Both of these units are currently occupier. The second-floor unit is leaseholder to a high-end retail store, which has extended its lease term for two years from March next year, with a monthly rental price of $5,000. The fourth-floor unit is lessee to a health therapy business for $1,800 per month till July 2025.
URA sales records from the last 12 months shows People’s Park Complex retail units typically selling for $947 psf usually. Unit rentals will range in between $2.40 psf per month (pm) to $7.10 psf pm, or approximately $4.60 psf pm. This translates to a strong leasing return of 5.8%.
The indicative guide cost for the 452 sq ft unit on the 2nd level is $1.8 million ($3,982 psf), whilst the guide rate 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.
Knight Frank’s Tan anticipates interest to follow from investors– locals, immigrants and even corporate buyers. This is because buyers are exempt to GST, ABSD or SSD.
The owner of the second-storey retail unit acquired the property for $1.45 million ($3,207 psf) in April last year, based on signs lodged. The proprietor of the fourth-storey unit bought the property for $828,000 ($1,709 psf) in May last year and is the 2nd proprietor of the market spot.
According to the auctioneer at Knight Frank, the units are not subject to goods and services tax (GST), additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). Moreover, the property has the possibility for en masse sale.
People’s Park Complex is a 99-year leasehold, with a standing 44 years on its lease. The mixed-use project rises at the crossroads of Eu Tong Sen Road and Park Crescent. Completed in 1970, it makes up a six-storey retail industry and office podium and a 25-storey apartment block. It has actually been zoned for business use under the URA’s 2019 Masterplan and has a gross story ratio of 5.6.
The property development’s hire yield is considerably more than its reseller neighbours’. Ninety-nine-year leasehold mall Havelock2 on Havelock Roadway, situated inside a 500m span of People’s Park Facility, has a rental yield of 4.6%. One more nearby shopping center, Chinatown Point on New Bridge Road, has a rentals return of 3.4%. The higher rental yield at People’s Park Complex speaks to the high step that the project enjoys, likely from locals in the neighbourhood and visitors.
Two separate strata retail units on the 2nd 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.
Based on cautions lodged, the project has actually found only 3 reselling purchases thus far this year. The very last sale occurred in June when a 291 sq ft retail unit switched controls for $1.3 million, or $4,473 psf. The two other sales were in April and involved a 366 sq ft unit marketed for $1.7 million ($4,645 psf) and a 452 sq ft unit for $2.08 million ($4,601 psf).
