Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil
People’s Park Complex comes by means of Chinatown MRT Station, located straight beside the structure, and Outram Park MRT Terminal. Tricia Tan, supervisor of auction and sales at Knight Frank Singapore, indicates that it is a well-known travellers location with high step.
The proprietor 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 purchased the real estate for $828,000 ($1,709 psf) in May in 2022 and is the 2nd owner of the retail spot.
The indicative overview rate for the 452 sq ft unit on the 2nd level is $1.8 million ($3,982 psf), while the guide price for the fourth-level unit taking up 484 sq ft is $800,000 ($1,653 psf). This is the second time that each units have been offered via Knight Frank Singapore’s auction sale.
People’s Park Complex is a 99-year leasehold, with a standing 44 years on its lease contract. The mixed-use property development lies at the crossroads of Eu Tong Sen Roadway and Park Crescent. Finished in 1970, it consists of a six-storey retail store and office platform and a 25-storey apartment block. It has been zoned for commercial benefit within the URA’s 2019 Masterplan and has a gross plot proportion of 5.6.
Based upon cautions lodged, the property has actually seen only 3 reselling deals already this year. The past sale took place in June when a 291 sq ft retail unit changed controls for $1.3 million, or $4,473 psf. The two other revenues were in April and included a 366 sq ft unit offered 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 items and services tax obligation (GST), additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). Additionally, the structure has the possibility for en masse sale.
The development’s leasing return is substantially more than its retail neighbours’. Ninety-nine-year leasehold shopping center Havelock2 on Havelock Road, situated throughout a 500m distance of People’s Park Centre, has a rental return of 4.6%. An additional close-by mall, Chinatown Point on New Bridge Roadway, has a rental yield of 3.4%. The higher rental yield at People’s Park Complex speaks to the high footfall that the property development delights in, likely from residents in the neighbourhood and tourists.
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 raised for auction on Nov 16 by Knight Frank Singapore.
She includes that the recent administration announcement to build 6,000 non commercial homes on Pearl’s Hill in Chinatown is anticipated to boost traffic in the area, bringing more business and greater investment accept potential customers of the units.
Knight Frank’s Tan expects interest to come from investors– locals, immigrants and even corporate purchasers. This is because buyers are not subjected to GST, ABSD or SSD.
Both of these units are presently lessee. The second-floor unit is leaseholder to a luxury retail store, which has actually extended its contract term for two years from March next year, with a monthly rental rate of $5,000. The fourth-floor unit is tenanted to a wellness therapy business for $1,800 monthly till July 2025.
URA revenues records from the previous twelve month reveals People’s Park Complex retail industry units generally yielding $947 psf typically. Unit rents will certainly 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 rental return of 5.8%.