Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil
People’s Park Complex comes by means of Chinatown MRT Terminal, situated right next to the development, and Outram Park MRT Terminal. Tricia Tan, director of public auction and sales at Knight Frank Singapore, mentions that it is a popular sightseer location with high footfall.
Both units are at present occupier. The second-floor unit is lessee to a high-end retailer, which has restored its lease term for 2 years from March next year, with a month-to-month leasing price of $5,000. The fourth-floor unit is occupier to a health therapy service for $1,800 per month up until July 2025.
People’s Park Complex is a 99-year leasehold, with a maintaining 44 years on its rent. The mixed-use project lies at the crossroads of Eu Tong Sen Road and Park Crescent. Completed in 1970, it comprises a six-storey retail store and office space platform and a 25-storey apartment block. It has been zoned for business utilization within the URA’s 2019 Masterplan and has a gross story proportion of 5.6.
The proprietor of the second-storey retail unit bought the real estate for $1.45 million ($3,207 psf) in April in 2022, placed on warnings lodged. The owner of the fourth-storey unit bought the property for $828,000 ($1,709 psf) in May last year and is the second proprietor of the retail store spot.
The indicative guide rate 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 covering 484 sq ft is $800,000 ($1,653 psf). This is the 2nd time that both units have been put up for sale through Knight Frank Singapore’s auction sale.
Based on caveats lodged, the project has actually observed only three resale purchases already this year. The very last sale happened in June when a 291 sq ft retail unit changed controls for $1.3 million, or $4,473 psf. The two other sales remained 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).
She adds that the recent government news to build 6,000 residential homes on Pearl’s Hill in Chinatown is anticipated to raise traffic in the area, bringing more business and greater financial investment yields to potential purchasers of the units.
URA profits data from the past twelve month reveals People’s Park Complex retail industry units typically yielding $947 psf on average. Unit rentals will range 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 service return of 5.8%.
The property development’s hire turnout is substantially greater than its reseller neighbours’. Ninety-nine-year leasehold mall Havelock2 on Havelock Road, situated within a 500m radius of People’s Park Centre, has a rental return of 4.6%. Another nearby 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 to the high footfall that the property development delights in, likely from locals in the area and tourists.
Two different strata retail units on the second and fourth levels of the People’s Park Complex in District 1’s Chinatown is going to be raised for public auction on Nov 16 by Knight Frank Singapore.
Knight Frank’s Tan anticipates interest to follow from investors– locals, immigrants and even corporate buyers. This is because clients are exempt to GST, ABSD or SSD.
According to the seller at Knight Frank, the units are exempt to items and services tax (GST), additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). Additionally, the property has the capacity for en bloc sale.