Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil
Knight Frank’s Tan anticipates rate of interest to follow from investors– locals, immigrants and also corporate purchasers. This is because buyers are not subjected to GST, ABSD or SSD.
People’s Park Complex comes using Chinatown MRT Terminal, located 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 travellers spot with high tramp.
The development’s rental turnout is dramatically higher than its reseller neighbours’. Ninety-nine-year leasehold mall Havelock2 on Havelock Road, situated throughout a 500m span of People’s Park Center, has a rental turnout of 4.6%. One more close-by mall, Chinatown Point on New Bridge Roadway, has a leasing return of 3.4%. The greater rental yield at People’s Park Complex speaks with the high step that the property development enjoys, likely from locals in the area and tourists.
The owner of the second-storey retail unit acquired the building for $1.45 million ($3,207 psf) in April last year, placed on signs lodged. The owner of the fourth-storey unit purchased the property for $828,000 ($1,709 psf) in May in 2022 and is the second proprietor of the market area.
According to the auctioneer at Knight Frank, the units are exempt to products and services tax (GST), additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). Moreover, the structure has the potential for en masse sale.
Two different strata retail units on the second and 4th levels of the People’s Park Complex in District 1’s Chinatown will be set up for auction on Nov 16 by Knight Frank Singapore.
People’s Park Complex is a 99-year leasehold, with a maintaining 44 years on its lease. The mixed-use project stands at the crossroads of Eu Tong Sen Roadway and Park Crescent. Completed 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 commercial utilization under the URA’s 2019 Masterplan and has a gross plot ratio of 5.6.
She includes that the recent state announcement to build 6,000 property homes on Pearl’s Hill in Chinatown is expected to raise jam in the location, bringing even more business and higher investment accept possible purchasers of the units.
URA profits records from the previous year reveals People’s Park Complex retail industry units normally yielding $947 psf typically. Unit rents will vary in between $2.40 psf per month (pm) to $7.10 psf pm, or an average of $4.60 psf pm. This translates to a significant service return of 5.8%.
The suggestive overview price for the 452 sq ft unit on the 2nd level is $1.8 million ($3,982 psf), whilst the guide price for the fourth-level unit occupying 484 sq ft is $800,000 ($1,653 psf). This is the second time that each units have been sold with Knight Frank Singapore’s auction sale.
The two units are presently lessee. The second-floor unit is lessee to a high-end retail store, which has continued its contract term for two years from March next year, with a month-to-month service rate of $5,000. The fourth-floor unit is lessee to a health treatment business for $1,800 per month up until July 2025.
Based on caveats lodged, the project has observed only three resell purchases already this year. The last sale happened in June when a 291 sq ft retail unit switched hands for $1.3 million, or $4,473 psf. The two more revenues remained in April and entailed 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).