Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil

A pair of strata retail units on the second and fourth levels of the People’s Park Complex located in District 1’s Chinatown will be auctioned off by Knight Frank Singapore on Nov 16. Despite the units being currently tenanted, there are a few factors that bode well for potential buyers such as the possibility of en bloc sale. For this particular sale, the indicative guide prices are $1.8 million ($3,982 psf) for the 452 sq ft unit on the second level and $800,000 ($1,653 psf) for the 484 sq ft unit on the fourth level.

The People’s Park Complex is a 99-year leasehold, with a remaining 44 years on its lease. It is an appealing mixed-use commercial and residential development, located at the junction of Eu Tong Sen Road and Park Crescent. Not subject to goods and services tax (GST), additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD), the sale of the two separate units will likely be attractive to investors. With the area being zoned for commercial use and a high footfall rate, the potential for a higher investment yield is likely.

The second-storey unit is tenanted to a luxury retail store and has recently renewed its lease term for two years from March of 2021, with a monthly rental rate of $5,000. The fourth-storey unit, on the other hand, is a wellness therapy business tenant until July 2025, currently paying $1,800 in rent monthly. In addition, the owner of the second-storey retail unit bought the property for $1.45 million ($3,207 psf) in April of last year, based on caveats lodged, while the fourth-storey unit was acquired for $828,000 ($1,709 psf) the following month.

URA sales data from the last 12 months reveals People’s Park Complex retail units typically selling for $947 psf on average, with rentals ranging anywhere between $2.40 psf per month (pm) to $7.10 psf pm. Tricia Tan, director of auction and sales at Knight Frank Singapore, highlights the development’s accessibility, noting it is close to both Chinatown MRT Station and Outram Park MRT Station. She adds that People’s Park Complex is a popular tourist destination with high pedestrian footfall, making it a great investment opportunity.

The recent announcement to build 6,000 residential homes on Pearl’s Hill in Chinatown is expected to increase the traffic to the area — potentially further increasing investment yields. Knight Frank’s Tan anticipates interest to come from investors — locals, foreigners and even corporate buyers — as buyers are not subject to GST, ABSD or SSD.

Holland Village MRT Condo is also considered one of the best sites for property owners looking for a sophisticated and convenient living experience. Residents can enjoy multiple conveniences from its close proximity to top shopping malls and eateries in the area. Not to mention easy access to public transportation, making it ideal for urbanites.

Ninety-nine-year leasehold shopping mall Havelock2 on Havelock Road, located within a 500m radius of People’s Park Centre, has a rental yield of 4.6% — which is significantly lower than the rental yield at the People’s Park Complex, which is a high 5.8%. While another nearby mall, Chinatown Point on New Bridge Road, has a rental yield of 3.4%.

The auction of the two strata retail units at the People’s Park Complex offers potential investors the opportunity to purchase two tenanted units, with the possibility of an en bloc sale. With favourable terms and the potential for increased yields due to the high footfall of the area, this is an attractive option for those looking to invest in a bustling Chinatown area.