Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil
People’s Park Complex is a 99-year leasehold, with a maintaining 44 years on its rent. The mixed-use property development is located at the crossroads of Eu Tong Sen Roadway and Park Crescent. Completed in 1970, it comprises a six-storey retail industry and office space platform and a 25-storey apartment block. It has actually been zoned for business use within the URA’s 2019 Masterplan and has a gross plot ratio of 5.6.
URA profits data from the past one year shows People’s Park Complex retail units generally costing $947 psf usually. Unit rents will certainly range between $2.40 psf per month (pm) to $7.10 psf pm, or an average of $4.60 psf pm. This converts to a strong service return of 5.8%.
People’s Park Complex comes through Chinatown MRT Station, located straight next to the development, and Outram Park MRT Terminal. Tricia Tan, director of public auction and sales at Knight Frank Singapore, notes that it is a popular sightseer destination with high tramp.
Knight Frank’s Tan expects interest to come from investors– locals, foreigners and also corporate purchasers. This is because buyers are not subjected to GST, ABSD or SSD.
Based upon caveats lodged, the property development has actually seen only three resell deals thus far this year. The last sale happened in June when a 291 sq ft retail unit changed hands for $1.3 million, or $4,473 psf. Both other revenues remained in April and included a 366 sq ft unit sold for $1.7 million ($4,645 psf) and a 452 sq ft unit for $2.08 million ($4,601 psf).
She includes that the recent state announcement to construct 6,000 residential homes on Pearl’s Hill in Chinatown is anticipated to raise traffic in the area, bringing even more business and greater financial investment accept possible buyers of the units.
According to the seller 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 property has the capacity for en masse sale.
The property’s rental turnout is dramatically greater than its retail neighbours’. Ninety-nine-year leasehold shopping mall Havelock2 on Havelock Road, situated within a 500m span of People’s Park Center, has a rental return of 4.6%. Another neighboring mall, Chinatown Point on New Bridge Roadway, has a rentals return of 3.4%. The higher rental yield at People’s Park Complex speaks to the high footfall that the project appreciates, likely from locals in the area and visitors.
The owner of the second-storey retail store unit purchased the property for $1.45 million ($3,207 psf) in April in 2022, placed on caveats lodged. The proprietor of the fourth-storey unit purchased the building for $828,000 ($1,709 psf) in May in 2022 and is the 2nd proprietor of the retail store space.
Two different strata retail units on the 2nd and 4th levels of the People’s Park Complex in District 1’s Chinatown will be put up for auction on Nov 16 by Knight Frank Singapore.
The suggestive overview cost for the 452 sq ft unit on the second floor is $1.8 million ($3,982 psf), while the guide rate for the fourth-level unit occupying 484 sq ft is $800,000 ($1,653 psf). This is the 2nd time that each units have been sold through Knight Frank Singapore’s auction.
Both units are presently tenanted. The second-floor unit is lessee to a luxury retail store, that has restored its contract term for two years from March next year, with a month-to-month leasing price of $5,000. The fourth-floor unit is occupier to a health treatment service for $1,800 monthly till July 2025.