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 bought the property for $1.45 million ($3,207 psf) in April in 2022, placed on signs 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 owner of the market area.

Two different strata retail units on the 2nd and fourth levels of the People’s Park Complex in District 1’s Chinatown will be raised for public auction on Nov 16 by Knight Frank Singapore.

Based upon caveats lodged, the development has actually found just 3 reselling deals already 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 more revenues remained in April and entailed 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).

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

Both units are at present lessee. The second-floor unit is leaseholder to a luxury retail store, which has actually continued its contract term for 2 years from March next year, with a monthly service price of $5,000. The fourth-floor unit is tenanted to a health therapy establishment for $1,800 monthly until July 2025.

The indicative guide cost for the 452 sq ft unit on the 2nd floor is $1.8 million ($3,982 psf), while the guide cost for the fourth-level unit covering 484 sq ft is $800,000 ($1,653 psf). This is the second time that each units have been sold via Knight Frank Singapore’s auction.

People’s Park Complex is a 99-year leasehold, with a standing 44 years on its sublease. The mixed-use project rises at the crossroads of Eu Tong Sen Roadway and Park Crescent. Finished in 1970, it makes up a six-storey retail store and office space podium and a 25-storey apartment block. It has been zoned for business utilization within the URA’s 2019 Masterplan and has a gross plot proportion of 5.6.

She includes that the recent administration announcement to build 6,000 residential homes on Pearl’s Hill in Chinatown is expected to enhance traffic in the area, bringing more business and greater investment yields to potential purchasers of the units.

One Bernam MCC Land and Hy Realty

URA sales data from the past one year reveals People’s Park Complex retail units usually costing $947 psf usually. Unit rents will stretch in between $2.40 psf monthly (pm) to $7.10 psf pm, or approximately $4.60 psf pm. This converts to a strong leasing return of 5.8%.

People’s Park Complex comes by means of Chinatown MRT Station, located straight next to the structure, and Outram Park MRT Station. Tricia Tan, director of auction and transactions at Knight Frank Singapore, indicates that it is a well-known travellers destination with high step.

The property’s rental return is dramatically more than its retail neighbors’. Ninety-nine-year leasehold shopping center Havelock2 on Havelock Roadway, located throughout a 500m distance of People’s Park Facility, has a rental turnout of 4.6%. An additional neighboring shopping mall, Chinatown Point on New Bridge Roadway, has a leasing return of 3.4%. The higher rental return at People’s Park Complex speaks to the high step that the property development enjoys, likely from homeowners in the community and visitors.

According to the auctioneer 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). Furthermore, the building has the potential for en masse sale.


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