Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil
URA revenues data from the previous one year shows People’s Park Complex retail units typically costing $947 psf on average. Unit rentals will certainly vary in between $2.40 psf monthly (pm) to $7.10 psf pm, or an average of $4.60 psf pm. This equates to a high service yield of 5.8%.
Both of these units are currently lessee. The second-floor unit is tenanted to a luxury retail store, which has continued its rent term for 2 years from March next year, with a regular monthly rental price of $5,000. The fourth-floor unit is tenanted to a health treatment establishment for $1,800 monthly till July 2025.
She adds that the current government announcement to build 6,000 property homes on Pearl’s Hill in Chinatown is expected to raise jam in the area, bringing more business and greater investment yields to prospective customers of the units.
The suggestive guide cost for the 452 sq ft unit on the second floor is $1.8 million ($3,982 psf), whilst the overview cost 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 offered with Knight Frank Singapore’s auction.
People’s Park Complex comes using Chinatown MRT Terminal, located straight alongside the structure, and Outram Park MRT Station. Tricia Tan, supervisor of auction and transactions at Knight Frank Singapore, notes that it is a well-known travellers spot with high footfall.
According to the auctioneer at Knight Frank, the units are not subject to products and services tax obligation (GST), additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). Additionally, the building has the possibility for en bloc sale.
Based on cautions lodged, the development has observed only 3 reselling purchases so far this year. The last sale took place in June when a 291 sq ft retail unit shifted hands for $1.3 million, or $4,473 psf. The two other sales were in April and included 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 is a 99-year leasehold, with a standing 44 years on its sublease. The mixed-use property development is located at the junction of Eu Tong Sen Road and Park Crescent. Accomplished in 1970, it makes up a six-storey retail and office platform 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.
Two separate strata retail units on the second and fourth floors of the People’s Park Complex in District 1’s Chinatown is going to be put up for auction on Nov 16 by Knight Frank Singapore.
The proprietor of the second-storey retail unit acquired the property for $1.45 million ($3,207 psf) in April last year, based on warnings lodged. The owner of the fourth-storey unit bought the building for $828,000 ($1,709 psf) in May in 2022 and is the 2nd owner of the market area.
The property development’s leasing yield is considerably greater than its reseller neighbors’. Ninety-nine-year leasehold shopping center Havelock2 on Havelock Road, situated within a 500m distance of People’s Park Center, has a rental yield of 4.6%. An additional nearby mall, Chinatown Point on New Bridge Roadway, has a rentals yield of 3.4%. The higher rental return at People’s Park Complex speaks to the high step that the property development delights in, likely from residents in the community and vacationers.
Knight Frank’s Tan assumes rate of interest to come from investors– locals, immigrants and also corporate purchasers. This is because clients are exempt to GST, ABSD or SSD.