Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil
People’s Park Complex is accessible via Chinatown MRT Terminal, located right next to the structure, and Outram Park MRT Station. Tricia Tan, director of auction and sales at Knight Frank Singapore, mentions that it is a popular travellers spot with high step.
The proprietor of the second-storey retail store unit obtained the property for $1.45 million ($3,207 psf) in April last year, placed on warnings lodged. The proprietor of the fourth-storey unit bought the building for $828,000 ($1,709 psf) in May last year and is the second owner of the market space.
Two separate strata retail units on the 2nd and 4th floors of the People’s Park Complex in District 1’s Chinatown will be raised for public auction on Nov 16 by Knight Frank Singapore.
Both of these units are presently occupier. The second-floor unit is lessee to a luxury retail, which has extended its rent term for 2 years from March next year, with a month-to-month rental rate of $5,000. The fourth-floor unit is tenanted to a wellness therapy establishment for $1,800 every month up until July 2025.
People’s Park Complex is a 99-year leasehold, with a remaining 44 years on its rent. The mixed-use property development stands at the junction of Eu Tong Sen Roadway and Park Crescent. Completed in 1970, it consists of a six-storey retail store and office podium and a 25-storey apartment block. It has actually been zoned for commercial utilization under the URA’s 2019 Masterplan and has a gross plot ratio of 5.6.
Based upon cautions lodged, the development has actually observed only 3 reselling deals thus far this year. The past sale took place in June when a 291 sq ft retail unit shifted controls for $1.3 million, or $4,473 psf. The two other sales were in April and included 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).
URA sales records from the past one year reveals People’s Park Complex retail units normally costing $947 psf on average. Unit leasings will certainly vary between $2.40 psf monthly (pm) to $7.10 psf pm, or an average of $4.60 psf pm. This converts to a strong leasing return of 5.8%.
According to the seller at Knight Frank, the units are exempt to goods and services tax (GST), additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). Moreover, the structure has the potential for en bloc sale.
She adds that the recent state news to develop 6,000 non commercial homes on Pearl’s Hill in Chinatown is expected to boost jam in the location, bringing even more business and greater financial investment accept prospective buyers of the units.
Knight Frank’s Tan assumes interest to come from investors– locals, immigrants and even corporate customers. This is because clients are not subjected to GST, ABSD or SSD.
The indicative overview rate 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 taking up 484 sq ft is $800,000 ($1,653 psf). This is the 2nd time that each units have been put up for sale via Knight Frank Singapore’s auction sale.
The property development’s rental return is substantially higher than its reseller neighbours’. Ninety-nine-year leasehold mall Havelock2 on Havelock Roadway, located within a 500m distance of People’s Park Centre, has a rental return of 4.6%. An additional neighboring shopping center, Chinatown Point on New Bridge Roadway, has a leasing yield of 3.4%. The greater rental yield at People’s Park Complex speaks to the high footfall that the property development enjoys, likely from residents in the community and visitors.