Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil
People’s Park Complex comes through Chinatown MRT Terminal, situated right next to the development, and Outram Park MRT Terminal. Tricia Tan, supervisor of public auction and sales at Knight Frank Singapore, notes that it is a well-known tourist spot with high step.
People’s Park Complex is a 99-year leasehold, with a remaining 44 years on its rent. The mixed-use property development is located 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 business usage under the URA’s 2019 Masterplan and has a gross plot ratio of 5.6.
The two units are at present lessee. The second-floor unit is lessee to a high-end retailer, which has extended its lease term for 2 years from March next year, with a monthly rental rate of $5,000. The fourth-floor unit is tenanted to a health treatment service for $1,800 monthly up until July 2025.
The owner of the second-storey retail unit acquired 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 bought the real estate for $828,000 ($1,709 psf) in May last year and is the second owner of the market area.
The property’s rental yield is dramatically higher than its reseller neighbors’. Ninety-nine-year leasehold shopping mall Havelock2 on Havelock Roadway, situated within a 500m radius of People’s Park Centre, has a rental yield of 4.6%. Another close-by shopping mall, Chinatown Point on New Bridge Road, has a rentals yield of 3.4%. The higher rental return at People’s Park Complex speaks with the high footfall that the development enjoys, likely from locals in the neighbourhood and vacationers.
Based upon cautions lodged, the property development has found just three reselling purchases so far this year. The last sale occurred in June when a 291 sq ft retail unit changed controls for $1.3 million, or $4,473 psf. Both more revenues remained in April and involved a 366 sq ft unit sold for $1.7 million ($4,645 psf) and a 452 sq ft unit for $2.08 million ($4,601 psf).
She adds that the current government announcement to construct 6,000 property homes on Pearl’s Hill in Chinatown is anticipated to increase jam in the area, bringing even more business and higher investment accept prospective customers of the units.
The suggestive overview cost for the 452 sq ft unit on the second level is $1.8 million ($3,982 psf), whilst the overview price for the fourth-level unit taking up 484 sq ft is $800,000 ($1,653 psf). This is the 2nd time that both units have actually been offered with Knight Frank Singapore’s auction sale.
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). Additionally, the property has the potential for en masse sale.
Two separate strata retail units on the second and fourth 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.
URA revenues information from the past twelve month reveals People’s Park Complex retail industry units generally selling for $947 psf usually. Unit leasings will certainly vary between $2.40 psf per month (pm) to $7.10 psf pm, or an average of $4.60 psf pm. This converts to a significant rental return of 5.8%.
Knight Frank’s Tan expects rate of interest to come from investors– locals, immigrants and even corporate customers. This is because clients are exempt to GST, ABSD or SSD.