Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil

The owner of the second-storey retail store unit obtained the real estate for $1.45 million ($3,207 psf) in April in 2022, placed on signs lodged. The owner of the fourth-storey unit purchased the property for $828,000 ($1,709 psf) in May last year and is the second owner of the retail store spot.

Two separate strata retail units on the 2nd and 4th floors of the People’s Park Complex in District 1’s Chinatown will be set up for public auction on Nov 16 by Knight Frank Singapore.

Based on caveats lodged, the property development has found only 3 resale deals already this year. The past sale occurred in June when a 291 sq ft retail unit switched hands for $1.3 million, or $4,473 psf. Both other sales remained in April and entailed 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 comes through Chinatown MRT Terminal, situated directly alongside the development, and Outram Park MRT Terminal. Tricia Tan, director of auction and sales at Knight Frank Singapore, mentions that it is a popular travellers spot with high tramp.

According to the seller at Knight Frank, the units are not subject to items 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.

The suggestive guide price for the 452 sq ft unit on the second level is $1.8 million ($3,982 psf), while the guide cost 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 offered with Knight Frank Singapore’s auction sale.

Both units are currently occupier. The second-floor unit is lessee to a deluxe retail store, which has renewed its rent term for two years from March next year, with a monthly service price of $5,000. The fourth-floor unit is lessee to a health therapy service for $1,800 per month till July 2025.

Knight Frank’s Tan expects rate of interest to follow from investors– locals, immigrants and even corporate customers. This is because buyers are not subjected to GST, ABSD or SSD.

The property development’s hire yield is considerably greater than its retail neighbours’. Ninety-nine-year leasehold shopping mall Havelock2 on Havelock Roadway, located within a 500m distance of People’s Park Centre, has a rental yield of 4.6%. An additional neighboring shopping mall, Chinatown Point on New Bridge Road, has a rental return of 3.4%. The higher rental yield at People’s Park Complex speaks to the high footfall that the property development enjoys, likely from homeowners in the neighbourhood and vacationers.

J’Den Condo floor plan

She includes that the recent administration announcement to build 6,000 non commercial homes on Pearl’s Hill in Chinatown is anticipated to enhance traffic in the area, bringing even more business and higher financial investment yields to prospective customers of the units.

People’s Park Complex is a 99-year leasehold, with a remaining 44 years on its sublease. The mixed-use property development lies at the link of Eu Tong Sen Road and Park Crescent. Finished in 1970, it makes up a six-storey retail industry and workplace platform and a 25-storey apartment block. It has actually been zoned for industrial usage under the URA’s 2019 Masterplan and has a gross plot ratio of 5.6.

URA sales records from the past twelve month shows People’s Park Complex retail units usually selling for $947 psf typically. Unit rentals will vary in between $2.40 psf monthly (pm) to $7.10 psf pm, or approximately $4.60 psf pm. This equates to a strong leasing yield of 5.8%.

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